That is the reason many people buy land and don’t develop it. They wait for 10 years and sell. The profit margin is huge.

The land index by Hassconsult says that an acre of land at Upper Hill was selling at 30 million in 1990. In the year 2020, the same piece of land is worth 170 million. That is a 535% price increase.

That is how property makes you money. HassConsult Real Estate is a Nairobi based property dealership firm.

Nairobi land dealers go to the outskirts counties of Machakos, Kajiando, and Kiambu. They buy land cheap and sell the same later to private developers, SACCOs, and Housing Societies.

b) Homes*

Those who choose to build houses for sale do make money too. If the cost of building a house is is 3 million the developer sells it at 4 to 6 million.

Those are new homes. Old homes do appreciate in value too. A house built in 1990 in Nairobi will have appreciated by more than 150% because of its location.

2. Buy And Sell Land

There is one profitable way of making money via land dealing. Buy a large track of land and sub-divide it into small portions.

This makes you a land dealer because you buy land in acres. Sub-divide it into smaller plots and sell to willing buyers.

Some buyers could buy to build homes or rental properties. Others might buyer to hold and sell at a higher price in the future.

a) Selling plots

After you sub-divided the land you will have to sell the smaller portions of land. These smaller portions are known as plots.

If one acre of land cost you 2 million, you could end-up making 6 million in gross sales. All you need is to sub-divide the land into one eighth (1/8) pieces (or plots of size 50 x 100 square feet.)

Sell a single plot at Ksh.750,000. After expenses, you should make at least 3 million in net profit.

b) You earn transaction fees when a buyer wants to sell their plot

There are some transaction fees that buyers are going to pay you. These fees are;

* Surveyors fee
* Title Deed processing fee
* Plot transfer fee

If you have little money and you want to get into the property business here is how you start.

Buy one plot with the aim of selling it at a profit. Say you buy it at Ksh.750,000. You can always sell it at 1 million or more later.

Put the money made into a new plot and save the balance. Find a buyer and sell it at a profit. Continue that way. Soon you will find yourself with enough money to buy 2 plots. And then three.

There are places outside but near Nairobi where you can buy a plot for less than Ksh.200,000. If you are under fifty years, you have the time to wait for 5 years.

The price will have appreciated in that period.

3. Build Or Buy Rental Properties

Want to create a passive income stream? You should invest in rental properties. Here you earn an income throughout the year. It is almost a guaranteed income but not a 100% assured income.

How do you get into the rental business?

a) Buy land and build rental units

b) Buy new rental properties from property developers

c) Buy old buildings, renovate and rent them

Make sure you have the right location because you will need tenants. Choose a bad location and you won’t get good tenants.

You can get rental properties in Kenya in a cheap way. Property developers ask for 20% or less down payment.

Say the developer is selling a house at 4 million Shillings. He wants a 20% deposit which is Ksh.800,000. If you can pay the deposit and rent the house, the tenant will be paying the remaining amount for you.

That’s an easy way of acquiring real estate. That’s being smart. That’s working smart not working hard.

Gakuyu Real Estate started with a single plot. Mr. Gakuyu didn’t even buy the plot, he exchanged his car for a plot with a retiring civil servant. The civil servant man wanted a car, Mr. Gakuyu wanted a plot.

That’s how the multi-billion Gakuyu real Estate started. Like that!

4. Lease Options – Lease Property

If you can’t afford to buy you can lease a property for some years. All you need is a lease agreement (or contract.) Then use the leased property to make money.

You could lease land for agriculture purposes or you could use the land for any other profitable commercial undertaking.

Advantage of property leasing to Make Money in Real Estate

Property leasing affords you the use of a property. A property you get without requiring significant capital investment.

Leasing comes with the option to buy the leased property. This is important because you will have used the property to generate income that buys it.

Example:

Business people lease buildings. They run colleges, schools, hotels, etc., in these buildings. In the end, they make so much money that they buy the building from the owner.

5. Contract Flipping – Become a Real Estate Broker

You don’t need money to make money in real estate. All you need is to be smart and work smart. People in Kenya are crazy about land. Everybody wants to have a piece of land. The demand is so high.

What do you do to Make Money in Real Estate?

Find plot owners who want to sell. Tell them you will find a buyer for their property. Find how much they want for the property.

If the owner wants 2 million Kenya Shillings, find a buyer who will buy the property for 2.5 million. When the buyer pays, the Ksh.500,000 on top is your commission. That’s how it works.

Work to bring two parties looking for each other together and make money in the process. Your job will be to find a distressed seller and a motivated buyer.

6. PROPERTY SHORT SALES

This involves working with banks. People take home loans (mortgage) and then they fall short in payments. Property short sales occur.

This happens when the current owner of their home is behind in mortgage payment. But the property hasn’t yet entered into auction stage (or foreclosure.)

The bank wants to unload (sell) the property as soon as possible. Because they want to recover the balance on the mortgage.

Properties on short sales are very cheap. Because the bank’s interest here is the mortgage shortfall. If you can clear the balance on the mortgage the bank is happy.

This entails working with the bank’s lending department. It involves the homeowner, the bank, and you. Parties have to agree on the sale price agreeable to all parties involved. But it is always a bargain for the buyer (you) because the other parties are desperate.

7. DEVELOP VACATION RENTALS TO MAKE MONEY IN REAL ESTATE

These are short-term rentals. And they are popular with tourists, celebrities, the rich, playboys, and slay queens.

This is a very profitable area of real estate. Vacation rentals are like hideout spaces for those who can afford them. In a hotel, you are in public but in a vacation rental, you get the privacy you deserve.

Those who want to relax live in these sort after rentals around the world. The best places to develop vacation rentals are Mombasa, Nairobi, Naivasha, and Nakuru. All tourist hotbeds in Kenya are good places to develop vacation rentals.

You need to get clients for only seven days in a month. And you are already in profit because vacation rentals are not cheap. People pay top Dollar for privacy, comfort, and luxury.

8. Commercial real estate developer

People need offices to run their businesses in prime locations. They also need a home to live in. It’s the business of commercial real estate developers to provide homes and office space.

Commercial real estate is lucrative. Done well, commercial real estate is a profitable venture. And many investors have become filthy rich through commercial real estate.

How do you start:

Start small and grow your business. Get prime locations and you have your golden bread and butter. Many billionaires have built their wealth via commercial real estate.

F.A.Q

*Is real estate a good investment in Kenya?

Yes. Real estate is a good investment in Kenya because the returns are very high. There is a high demand for land and homes. The supply is deficient, and the demand for property is skyrocketing in Kenya.

The value of the property appreciates in a relatively short period. A good example is the land value at the Upper Hill section of Nairobi.

In 1990 one acre of land was going for 30 million Kenya shillings. In 2020 the same piece of land is selling at Kenya shillings 170 million.

That is a 535% rise in prices in 30 years. That is a huge profit margin. That is the general trend in Kenya’s real estate.

Also, don’t forget to join our training on Business Plan Writing.

Most people who think about starting a business usually don`t consider writing a business plan.

I have read from different business experts about the fact that most start-up entrepreneurs do not write a business plan but what I have not read from anyone is why this is so.

Why is it that most people have fear (so to say) about writing a business plan?

I know the answer.

You see, there are many myths and lies you probably have heard about the subject of business plans.

Some people present a business plan as if it was a university thesis or an academic report to be defended before certain professors.

Other people think that a business plan has to be 50 pages long and that it must be written in a certain “approved” format.

Well, I am here to tell you that all those opinions are not valid.

Because there are some ugly lies around this important business step, most people are “afraid” of doing it.

By
Timothy Angwenyi
Business Consultant
&
Justine Nyachieo
Business Man & Mentor

<p>The post All About Properties first appeared on UPSURGE PROPERTIES LTD.</p>

The post All About Properties appeared first on UPSURGE PROPERTIES LTD.

Investing in commercial real estates is a wise decision for the following 7 reasons:

1) Diversification
Investing in a variety of assets is the best way to hedge against risk. Investing in Commercial Real Estate alongside stocks and bonds ensures that your portfolio will stay well-diversified and help mitigate potential downside. Diversifying can also provide tax advantages since there are different tax implications for each type of investment. The higher return typically offered by commercial property can offset taxes owed on other types of investments, like stocks and bonds, because capital gains rates are usually lower than income rates.

Finally, investors might be able to take advantage of some form of depreciation which may allow them to claim more deductions on their taxes than if they invested solely in other types of investments.

2) Capital appreciation

Commercial property prices tend to increase over time, meaning that if you hold onto your investment for long enough, it will likely be worth more than when you first bought it. In some cases, the value of a property can double or even triple in ten years’ time.

3) Appreciation potential

Property appreciation potential- Commercial property has the potential to appreciate, which means that it will not lose value over time. This is different from residential properties that are more likely to depreciate over time. 2. Reduced risk- Commercial properties typically have lower rates of vacancy and higher lease rates than residential properties, so they are less risky investments. 3.

4) Passive income

One of the many benefits of investing in commercial real estate is the possibility for passive income. With rental properties, tenants are responsible for paying their rent. This means that as long as your property is rented, you will earn money from it. As a result, you’ll be able to keep up with the mortgage payments and other expenses associated with owning a property. You might also make a profit depending on how much the tenant pays in rent. You can also get another form of passive income by taking out loans against the value of your property. If the value increases over time, then you can use those funds to buy more properties or make renovations on existing ones!

5) Long-term returns

Commercial property is an excellent investment because of the long-term returns. The average annual return on a commercial property is 7% which is higher than other investments like gold, stocks, and bonds. The rate of return for residential properties varies from city to city, but it’s usually around 4%. Commercial property can also be a good choice if you are looking for a steady income stream.

6) Longer holding period

Commercial properties are a great investment because they typically have a longer holding period. This is because, unlike residential properties that can be flipped for a quick profit, most commercial properties need to be rented out for at least one year before an investor can reap the benefits. And with rental rates still on the rise, it’s likely that these lower-yield investments will pay off for investors in the long run.

7) Control
-Commercial properties are less volatile than residential properties.

-The rental income from a commercial property is tax exempt.

-You can depreciate the building over 27 years.

-There is no limit on how much you can borrow for commercial real estate.

-Commercial Real Estate has a lower default rate and lower foreclosure rates than residential property.

<p>The post Reasons Why You Should Invest In Commercial Real Estate first appeared on UPSURGE PROPERTIES LTD.</p>

The post Reasons Why You Should Invest In Commercial Real Estate appeared first on UPSURGE PROPERTIES LTD.

And fortunately, it isn’t as complicated as you might think! To help get you started on your path to becoming a successful real estate investor, we’ve put together this step-by-step guide to investing in real estate in Kenya. Let’s get started.

1. What is Real Estate Investing?

Real estate investing is the act of buying properties, such as houses, multi-family units, commercial buildings, or land, with the goal of selling them at a higher price in the future. Real estate investing has a high barrier to entry, but it’s also one of the best ways to build wealth over time.

You can break down your investment in real estate over time by renting out the property and paying down the mortgage until you’ve recouped your initial investment.

Real estate investing is a great way to build wealth over time as you are able to leverage your money by buying properties that have a higher cash flow than your initial investment.

In addition to real money investments, sports betting is a fantastic and fun way to make money. You can visit this website to learn more.

2. Getting Started: Assessing Your Financial Situation

The first thing to do before you get started with real estate investing is to make sure that it’s a good fit for your financial situation.

The best way to figure this out is to create a financial plan for your future. This will help you to know how much money you’ll need in the future, how much money you currently have, and how to get there. This will help you to determine how much money you can invest in real estate and still meet your financial goals.

3. Finding the Right Property to Buy

One of the first decisions you need to make when investing in real estate is deciding what type of property to buy.

There are many different types of properties that you can invest in, such as single-family homes, multi-family units (think duplexes or triplexes), commercial buildings, land, mobile homes, or even boats. Most people start by investing in real estate by buying single-family homes, which can be a great way to get your feet wet.

If you’re looking for a slightly riskier investment, you can also invest in commercial properties, such as office buildings or medical buildings. And if you’re looking for a riskier investment that can provide a higher return, you can invest in industrial properties, such as warehouses.

Unfortunately, there is no one-size-fits-all rule for which type of property you should buy when investing in real estate. This is because every property has its own strengths and weaknesses.

4. Working with a Real Estate Agent

Once you’ve decided what type of property you’d like to buy, you’ll need to find a suitable investment property. The best way to find a property is to work with a real estate agent who can help you find the right investment property for you.

Luckily, you won’t have to start from scratch when looking for a real estate agent. There are numerous real estate websites and apps that allow you to search for properties and real estate agents in your area. One of the most popular real estate websites in Kenya is OLX, and you can find a real estate agent on OLX.

5. Understanding the Math Behind Real Estate Investments

One of the first things that you’ll need to understand if you plan to become a real estate investor is the math behind real estate investments.

Real estate investments can be broken down into two components: Cash Flow and Appreciation.

The cash flow of a property is how much money you can make from renting it out.
The appreciation of a property is how much the value of the property will increase as time goes on.
Things to know before you invest in Real Estate in Kenya

Before you dive into the world of real estate investing, it’s important to understand a few things.

*Be prepared to take some risks. No investment is 100% safe, and real estate investing is no different. *It is easy to minimize risk by investing in the right type of property that provides a high cash flow.
*Keep in mind that you will have to spend time researching potential investments.
*While real estate investing can be lucrative, it’s not a quick and easy way to make money. If you’re willing to put in the work, though, it can be a great way to gradually build wealth over time.

Conclusion

If you’ve ever dreamed of owning a vacation home, investing in real estate may be right up your alley. Real estate has proven to be an effective way for many people to grow their wealth. If you’re interested in getting started with real estate investing, it’s important that you learn as much as you can about the process before you begin.

You might be intimidated by the word ‘investing’, but as financial experts often say, you can’t grow your money if you don’t put it somewhere and let it grow.
Armed with the right information and knowledge, investing in real estate is not that scary after all. It’s a great way to grow your wealth and create a sustainable financial future for yourself and your family.
Fortunately, with this step-by-step guide, you will have all of the information that you need to invest in real estate successfully and efficiently.

<p>The post A Step-by-Step Guide to Investing in Real Estate in Kenya first appeared on UPSURGE PROPERTIES LTD.</p>

The post A Step-by-Step Guide to Investing in Real Estate in Kenya appeared first on UPSURGE PROPERTIES LTD.

According to Solomon Wangwe, a real estate developer, the title deed can be considered a “useless” document in such cases.

Wangwe says TSWT often forget to look for other relevant documents that complete the land purchase process and focus on the title deed, which can be forged.

Among the most important documents to be analyzed are a mutation form (in case the land was part of a large parcel), an index card and a green card.

1. Consult a lawyer

Wangwe argued that TSWT are ignoring the importance of involving a licensed lawyer in the land purchase process.

“I advise TSWT to hire a qualified lawyer when purchasing land. The lawyer can check the legality of the title deed.

“Also make sure he is certified, an unlicensed lawyer can make you a lot of money,” he argued.

2. Failure to check the title deed online

Through the e-citizen platform and the Ardhisasa platform, land buyers can validate their title deeds online

On these platforms, all you need to do is enter your title details and the system will roll back the feedback.

3. Not knowing the different types of title deeds

There are three main types of title deeds sectional (shows ownership of a single unit in a building), leasehold (shows ownership of land with a maximum of 99 years), and ownership (shows ownership of land with no restrictions).

It is wise to understand the difference in the title deeds.

4. Cannot distinguish between false and real title deeds.

Consult a professional such as a lawyer to verify the authenticity of the title deed. Yoyou can also go to the Land Registry to check if the title deed is registered

Be sure to confirm the location of the plot of land or real estate you are purchasing.

Check the identity and background of the company or person from whom you are buying land.

5. Incorrect names

If you have a different name or nickname on the title deed, you can invalidate your land tenure.

Make sure your names match those other government documents.

Other errors made in the title deed include incorrect amount of compensation, lack of notary stamp and subscribed witnesses, faulty confirmations or missing witnesses, lack of acknowledgment and marital status of donors on a non-homestead affidavit, and failure to obtain the combination of the donor’s spouse on the leasehold deed.
Essential Features To Consider When Investing In Real Estate!

When embarking on the journey to purchase land, whether for residential, commercial, or investment purposes, it’s imperative to conduct a thorough evaluation of the property’s features. Here are five essential features to consider when buying a plot.

1. Location and Accessibility
The land’s location determines its potential value. Land with well-maintained roads, and ease in access for public transport, make it attractive for investors.

Public transport vehicles such as Super Metro or Lopha Travels are available during the day and night; thus, residents are not worried of missing public transport at night.

2. Zoning and Land Use Regulations
Thoroughly understand the zoning regulations and land use restrictions applicable to the property. Ruiru-Kamakis is zoned as a controlled residential area, with estates such as Green Valley, Silicon Valley and Golden estates, emerging as a residential paradise along Eastern bypass.

3. Utilities and Social Amenities
Prime plots have existing utilities and numerous social amenities. Murera in Ruiru has an existing sewer line. The numerous amenities in Ruiru-Kamakis, Kenyatta road & Juja farm has informed the development of social amenities such as schools, hospitals & shopping malls.

4. Neighborhood
Before buying land, check the neighborhood to review its level of security & the estate regulations. Most neighborhoods along Thika road, have vibrant estate associations, whom you can call to get reviews of the locations.

5. Future Development
Research potential future developments in the vicinity. New roads, commercial centers, or residential communities have been cropping up along Thika road; making it a prime location to invest.

<p>The post Mistakes Land Buyers Make When Securing Title Deeds. first appeared on UPSURGE PROPERTIES LTD.</p>

The post Mistakes Land Buyers Make When Securing Title Deeds. appeared first on UPSURGE PROPERTIES LTD.

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