When the discussion on investment is brought up in Kenya, the word land investment is never far behind. Land investment in Kenya has grown rapidly and this can be attributed to a number of reasons as highlighted below:
- Return on investment (ROI)
Land is an investment that appreciates in value over time especially if you made proper planning while investing. Due to the market demand as a result of population growth, land prices are on a rise. In addition, land is not something that can be produced therefore it is in limited supply. This guarantees a return on investment that you will enjoy in the long run.
- Land is tangible
People are rather inclined to invest in tangible assets than intangible ones. Depending on its size, location and type, land can be used for several purposes as you wait for its value to rise.You can also see and enjoy your investment directly. There isn’t anything not to like about this tangible asset.
- Little to no maintenance
The major cost you incur during this process is purchasing the land. However, you might need to pay for fencing which does not take away from your investment since it is a security measure. With little maintenance required, there are no additional costs arising that have not been accounted for. Moreover, the longer you keep the property, the more the price appreciates over time.
- Cash flow can be predicted
If you decide to build rentals on your piece of property, you can predict the kind of cash flow you will receive unlike other investments. As long as the property is occupied, you can count on receiving money each month.
- Multiple options
When buying land, you can do a number of things with the property like leave it bare and let it appreciate in value, build your family home, build rental units or build a home to let. All these options are a return on investment which makes this an amazing investment opportunity. Moreover you can use this as a retirement plan and enjoy your hard earned income later on.
Adding land investment into your investment portfolio is a great way of protecting yourself from economic turmoil as well as reduce your risks when investing in other options. Maybe that is why people say ‘as safe as houses’ since it is a safer option compared to other investments.
Land is a great asset to begin with if you are diving into the investment pool. However, this investment is not a fast track money-making scheme. Due diligence should be done while researching the market so as to gain profitable long term results. This can be done on an individual level or by looking for a trusted real estate agency to guide you in your investment plan. With 35+ years of experience, Daykio has proven its place in the market and has gained positive reviews from its customers making it the perfect real estate guide.