Myths About Real Estate in Kenya
There is a lot of misleading and incorrect information that we read and hear about Real Estate and by default the real estate process makes everyone an armchair expert. Researching of all the information before you make your final decision is very important as it will be helpful in creating your own opinion as it will help you in separating the facts from the fiction. We hear so many good and bad real estate experiences from our friends and relatives that sometimes we start feeling that we know how it works. Here are 5 real estate myths — busted!
Myth 1 – Real Estate is a high risk investmentTruth: Any investment that may be real estate, shares, mutual funds, gold etc has its own set of risks and rewards. As an investor, before making any investment decision as big as real estate, you should be well aware of all the risks and take your decision wisely. In real estate, the best part is that your realtor is there at every step to guide you and thus take calculated risks. As a matter of fact, real estate is an investment that has the capacity of multiplying your profits. A number of factors contribute towards it like the location, property type, government policies, market condition etc. An expert advice is all you need to make this calculative risk.
Myth 2 – Only metros are the best places to invest in real estate.Real estate investment mantra is that you should invest in areas where there is a continuous scope of development in the near future. A smart investor always analyses the market trends, scope and pace of the market development and then identifies the areas that will be the next big thing. Many of the metros and tier 1 cities have reached a saturation level and there is a very little scope for the market drives to find a place in such already developed areas. In Kenya, a lot of tier 2 cities are emerging as the future real estate markets. The fact is that when one place reached its peak on all the development counts, the new unexplored markets come into limelight. The emerging localities have an affordable investment bracket at initial time of its development, but they surely see appreciation when the development completes.
Myth 3 – Most of the developers are losing focus on the middle income group sector and only concentrating on high-end residential projects because it makes better business sense.Fact: The high end residential projects are in surely in demand as a result of various factors like increasing income levels of individuals, NRI investments in the country etc, but with the focus of the Kenyan government towards “Housing for All” and “Affordable Housing”; the developers have full focus on this segment as well. In fact, the construction of mid-income housing projects fetches them more demand in terms of units and thus they see a lot of sense in developing them.
Myth 4 – Real Estate market is bad, we must keep awayFact: At times when the real estate market is bad, the best opportunity is that you can enter the market at a very low price and then maximize your returns when the market gets better. When the market is slow, the buyers can make use of lucrative payment plans and policies that the builders offer. But at the same time you have to be very cautious in choosing your developer. Only the developers who have a good past record and credible name in the market should be opted. A real estate professional can be your mentor in such situations.
5) Myth 5 – Real estate is not for the educated class like usFact: Kenyan real estate is quite unorganized and unprofessional, when every third person was a realtor. With the changing time, real estate is moving towards a direction where proper rules and regulations are being introduced in the market. With this the unorganized players are getting vanished from the market and a state has reached where we have polished and educated professionals joining the sector at various levels. All the global players already have their associates certified and trained to be able to move from just being a keeper of the listing to real estate consultants who are able to mentor their customers in their buying/selling decisions. We all need to understand that every market is unique and real estate market is a magnet for discussion. Everyone loves sharing about their experience about it as it is one of the biggest investments of everyone’s life. Our suggestion to you will be to take an expert consultation before reaching to your final decision. Real Estate now has professionals from different industries joining in to help you understand the myths and facts of this sector.