Fundamental Insights On Property Investment In Kenya

Hosted by Chams Media in partnership with Purple Dot International on 26th January, 2022

The webinar presenters were: Renu Hunjan a real-estate marketing strategist, Austin Waga head of mortgagees Stanbic bank and Adeel Madhani a legal expert practicing with Mohamed Madhani & Co Advocates. Together, these panelists equipped attendees with critical information on matters property investment. An investment possession is a real estate property, purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property, or both. The property may be held by an individual investor, a group of investors, or a corporation. For third parties, a license allows access to a property at a fee. It could also be a long-term endeavor or a short-term investment. Investment property is also a term that may be used to describe other assets purchased for the sake of future appreciation such as art, securities, land, or other collectibles.

Robert Kiyosaki says, “Real estate investing, even on a very small scale remains a tried and true means of building an individual’s cash flow and wealth”. People, especially Kenyan investors have always had faith in real estate. Anyone interested in property investment of whatever kind, ought to establish at full length, the when, why, what and how of what they desire.  The legal requirements for anyone interested in the ownership of any investment are an identifying document (ID or Passport) and a Kenya Revenue Authority (KRA) pin.  It is important for any prospective buyer to do their due diligence before any commitment; this involves a thorough background search, finding someone locally to physically check things on the ground as photos can be deceptive at times, hiring an independent advocate, personally checking on the property developer, pegging payment on construction milestones and if possible having the bank do it’s due diligence too.

It is safer and easier to purchase properties that are fully managed. It is also critical to consider whether one’s goals can still be achieved, especially putting into consideration a country’s tax obligations. For land purchase, it is important for one to have a physical title deed and also ensure a search is done to verify that they are the rightful owner. For other properties, it’s better to have a sublease than a share certificate.

Finally, those interested in mortgages ought to understand the bank requirements and be aware that the lending bank has to consider their residential status and whether their income is sustainable and verifiable.   

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