The real estate industry in Kenya is one of the most prominent industries. A common, less complex and safer means of investment is through real estate due to the high rate of returns home buyers receive if their intention is to rent out or resale the property (investment purposes).
First time residential property buyers may find the process of purchasing a property complex and overwhelming especially if they have no body beside them to guide them on how to handle the process of purchasing a property and the factors to consider. Below are five tips for first time home buyers in Kenya to take into consideration and to aid them in the residential property purchase process.
- Contact a real estate company such as Silqu Limited. Getting in touch with a real estate company will help in obtaining the required guidance and information based on what exactly you as a property purchaser are looking for. Real estate consultants will require information based on your interests and try as best as possible to link those interests with the properties they have available. you are more likely to obtain a property that matches your interests in a much faster way as compared to if you intend to conduct a sole research without the aid of a real estate consultant. Keep in mind that real estate consultants.
- Be aware of what you can afford in the market. It is extremely easy to dream about a home you have desire to own however the reality isn’t as simple. You have to ask yourself whether you can afford to purchase such a property at this stage. It’s is crucial to understand how much exactly you can afford. That means you should be familiar with your personal finances, keep track of your credit score and try to improve it as much as you can. If you have a good credit score, loans approval can be a breeze, so you need to ensure your credit score is positive hence resulting in a positive outcome. The aspect of down payment is necessary, and it can tend to be a large amount of money. You need to make sure you are in a comfortable position to make the initial down payment.
- List your investment priorities. One you are aware and sure of how much exactly you are capable of spending, it is time to have a look at the listings and identifying the most suitable option/choice. Ticking every single box is a difficult thing as chances are that you might not get a property that ticks all criterions however it is important to choose a property that meets most if not all your property criterions. Everything else that a house offers is simply a bonus, but make sure you find a place that boasts all the items from your priority list.
- Calculate expenses and profits. Not only is the price factor important to take into consideration but also all the other expenses that come with the property. The property of interest may need a high degree of renovation and that can be quite expensive. Immediate renovation is especially necessary if you intend to use the property for investment purposes such as to resale the property or to let it out. Carefully considering the expenses associated with the property can enhance budget planning and lead to profitability. It is vital to have some cushion cash encase of any unanticipated expenses that may arise in the near future.
- Organize the inspection and secure a loan. Do not skip home inspection as a part of the home-buying process and do not treat it as an expenditure, but rather as an investment. You want professionals to inspect the house you are interested in, since only they can establish if there is some damage or signs of structural wear. This might have a great impact on your offer and the budget you have in mind. After the inspection and the appraisal of the property, you can secure your loan with a bank or lender.