Kenya Real Estate – Top 5 Common Pitfalls to Avoid

Kenya real estate investments need not be complicated. Follow the rules and you will not fall into traps that others have. This is what you need to avoid.

Do not buy a house before you see it:
Sometimes, your sales agent will hype up the features of the house. It is best to arrange to see the property yourself. This way, you can make a good judgment on the property. For instance, how far is the property from local amenities? Is there a supermarket nearby? Just how close are the schools? children commute to school each day? Is the area likely to appreciate thus attracting good resale value or rental income? You can only verify such issues by viewing the property. In the event that you live abroad and can not view the property, find a relative or friend to take digital pictures for you and email them to you as an attachment.

Do not buy a house without a Lawyer:
This is a common trap that buyers often fall into. Always remember, lawyers are an investment, not an indulgence! Only a good lawyer can advice you on whether the seller has the right to sell, whether the property has debts attached to it and so on. Also, you may need to decide who should hold the title of the property. Ownership attracts various tax questions which your lawyer will help you to address.

Check your estate agent’s credentials:
In most cases, you will find that Kenya real estate developers contract estate agents as sole selling agents. The agent will then require a twenty percent deposit to be made to secure the property. Don’t give out your money before you verify whether the agent is trustworthy.

Do not be overly concerned with price:
Every one loves a good bargain. But when thinking of Kenya real estate investments, dispense with the idea that ‘cheap is a bargain’. You may end up with a house that is not structurally sound or one that has other related defects.
The best thing to do is to use a surveyor who can advice you about the house, its soundness, location and its re-sale price. This is essential as you may want to sell the house later.

Do not ignore ongoing costs:
Suppose your estate agent tells you the house costs USD 100,000, would that be the true cost of the house? What usually happens is that there are on going costs that often get ignored in any Kenya real estate investment. These include insurance, legal, mortgage and survey fees, taxes, maintenance and management fees. For instance, legal fees tend to be one percent of the value of the property.

You need to factor in all these costs before you decide to go ahead and make the purchase.

Don’t buy a house until you read more valuable tips here – http://www.my-kenya-guide.com/kenya-real-estate.html

Article Source: http://EzineArticles.com/?expert=Maggie_Nguyo


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One response to “Kenya Real Estate – Top 5 Common Pitfalls to Avoid”

  1. Charlyn Boleyn Avatar

    Great web site, where did you find that knowledge in this specific page? I am pleased I found it though, ill be checking back shortly to discover what other articles you could have.

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