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How to become successful in Kenya real estate investment

Maadhis Atieno
 


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Becoming a successful investor in Kenya real estate requires being able to find good real estate investment deals and putting them together. This can only be achieved by employing the services of professionals.

You must learn how to appraise and find the true value of real estate. This information will help you make better investment decisions. Realtors, appraisers, and banks determine what a property is worth by looking at comparable sales usually three to five sales of similar property that has recently sold in the same neighborhood. You must be able to do the same or alternatively look for journals about properties and their prices.

Getting a list of comparable prices of properties bought or sold and when they are sold-for the neighborhood you need information about, and asking active Kenya real estate investors in your area what the market is like will be helpful in making a better investment decision.

It is also important to note that there is no such thing as an ideal real estate market for investing. It tends to be more difficult to find bargains in rising markets if the market keeps rising, the probability of selling the property quickly for a large profit increases. In contrast, when property values are falling more bargains become available. It is wise to place yourself on the right side of the bargain in this aspect. You need to be able to assess the true value of properties based on when you expect to sell. Your purchase must be made at a good enough discount to allow for a profitable sale at a later date.

Ensure that you have a little leverage over other investors by acquiring properties at the lowest possible value. Leverage is very important for investors because the less cash you put down on each property the more profits you are likely to realize. You could also sell at a slightly lower rate than the competitors hence attracting more clients. If you are a long-term Kenya real estate investor leverage will work in your favor if the markets in which you invest appreciate in the long run and your income from the properties can pay for most of your monthly debt. Strategize to limit risk as they can plunge you into huge debts.

Get necessary information about your local real estate market first by understanding the large scale trends from global down to national regional and specific neighborhoods. This will help you minimize risks. Learn about target neighborhoods with the help of successful real estate investors in your area along the way. Real estate investors can help you interpret market indicators such as the average length of time houses have been on the market this month versus last month or last year. With this information it will help you make better investment decisions.

It is important not to guess the future of a local real estate market; you need to have a clear plan in mind when purchasing property. As a real estate investor you must know exactly how you will sell the property before you buy. And have a backup plan or two in case the first course of action doesn't work. You must know your market and your plan before you begin to invest. With these put in place, you are likely to enjoy working in Kenya real estate.

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