Just like any other business in Kenya, real estate investment can get complicated and risky sometimes. Just because real estate market looks appealing to the eye doesn’t mean it cannot go wrong. Many investors have tried so much but have ended up walking away due to some failing to cope with the losses they encounter.
Why do these investors walk away in the long run? Here are some of the biggest and unforgivable mistakes they make during this journey.
1. Failing to consult the experts
There is an urgency to talk to people who understand the trend in the real estate market. Agents such as username investment limited will advise you to go for residential land ownership rather than buying an already build house. This is not about what the market is about at the moment but rather how the market will be in the future. Consulting an expert will advise on where to invest in favor of one place to another. You need to understand how the real estate market has been moving in order to take the right part.
2. Coming in terms with Return On Investment (ROI)
You really need to understand the return on investment in order to avoid becoming a victim of selling everything you had invested jus to pay off the debts accumulated over the period.
Learn about the depreciation, taxes and competition in the market so as not be shocked or find yourself fighting hard to cover the consequences.
3. Investing too much
Before purchasing, you need to understand the actual price range of the area or the place from different sources you find yourself familiar with. For example, buying a piece of land let’s say an eighth in Westland or Karen does not come with the same price as an eighth of land in Ngong. You will need much extra in the first two locations, their rates of developing are high and you might end up spending more than what you can actually afford to lose.
4. Skipping research
Kenya market is very volatile, just because you have visited the site doesn’t mean that land is genuine. You will therefore need to do a little bit of background check on any property just to be sure and safe. This might be very tiring and might take a lot of your investment time but I guarantee you that it is worth doing it. If you think that this task is too much for you, go to an agent like username investment limited and I promise you that in the long run you will never be disappointed.
5. Mindset of get rich quick
Real estate is not gambling where it will depend on luck and boom you are a millionaire. It doesn’t work that way; this is a long term success which involve hard work and almost accurate calculations. Real estate is not an overnight success, even when we know that land depreciation does not happen, appreciation cannot however happen overnight. You can own a property and be stuck with it for years for you to realize it has gain value. The bottom line is, lower the expectations.