Real estate sector has become a boom for investors looking to make quick bucks in a short while. Most investors are jostling to have a stake in the promising sector of Kenya real estate. However one should evaluate his short and long term goals and find out what he intends to achieve out of that particular investment.
If you're thinking about investing in real estate to make money, you need to first determine your financial goals. Do you need to make money quickly, invest for your children's college fund, or build wealth for your retirement? Once you determine your financial goals, you need to decide which type of investing strategy works for you.
If you're low on cash, get started by finding a bargain house and selling the contract to another real estate investor. Join a real estate investing club to find investors willing to pay you for finding good deals. This way you are able to raise more cash to put into whatever investment you have set your eyes on.
If you want to increase your monthly income, look for income property that returns a positive net income from month to month. Start with single family house. Look for a bargain below market value. Fix up the house to generate top rental income. Find houses that will rent for more than your mortgage payment. You may need to go out from your home area to a location that supports this type of return on your money. For instance you can't pay kshs 30,000 for a home with a mortgage of kshs15, 000 that only rents for kshs10, 000. You might start with a home for around kshs30, 000 that rents for kshs17, 500. You will need good credit to get a loan with good interest rates. In a few years, your rental income should go up. Many Kenya real estate investors enjoy thousands of shillings each month generated by income property.
However, some investors don't like dealing with tenants and prefer to make money in other real estate ventures.
If you want to make money focusing on profits, investment property offers a different strategy. Instead of worrying about rental income, look for property that you can transform and sell or property that will appreciate significantly over time. Besides fixing a house up, you can transform a property by changing it. For instance, some investors buy apartment buildings and turn them into resorts. Many investors speculate in land and make money by holding the land until new development in the area increases the value.
Examine your financial situation along with your long term goals. You can get started by flipping properties, move onto income properties, and then make larger profits with investment properties. You might end up using a combination of all three strategies to make money investing in real estate.With good evaluation of goals and aims for investment and proper consultation, investing in Kenya real estate can be one of the most ideal decisions that an investor can never rue on.