The Keys to Success in Investing in Real Estate
A lot is being said about investing in real estate. Many people may ignore but those who know the true value in real estate will want to learn more to create more value. As a person looking to invest in real estate market, you want to make money by getting value for your money and time. In order to create value in any investment, including real estate, there are some key things to must do right.
Keys to success in real estate investment
- Objective
You need to have your objectives right before you begin to look for investment opportunity. Remember the opportunities will always be there but you need to know what you are looking for so that not all opportunities are for you. Your objective can border any of these things;
Getting land for commercial or residential project require that you take some factors into consideration. What you may require for a commercial property development may not be ideal for residential projects. A commercial project may require proximity to main road or closer to town centre. A residential property may require somewhere with less noise but with good neighborhood, electricity and security, among other factors. So set the right object.
- Budget
This is another key component which you should be clear about. When you are clear about your budget, you will not waste time on lands which are off your budget. If you have a budget of Ksh.500,00 or less, then you should focus on such lands pricing around the same amount or less.
- Research
This is where many people go wrong. You should do research on the following issues every time you want to buy a real estate property;
- Location
The location of the land you want to buy will help you narrow your search. You should have at least two locations when you want to buy land. If you just have a single location, it can be challenging. For example, if you want land in kisumu real estate market, you can think of Mamboleo and nyamasaria,nyamasaria and rabuor, kisian and maseno or kisian and ojola and so on.
- Price range
The price for a property cannot be a specific amount you have for investing. So you should come up with a price range. For example Ksh.400,000 to Ksh.600,000 is a good range to conduct search within.
- Land challenges in that area
There are areas where majority of lands there are succession cases. That means you commit funds on land but wait several months before you get a title on your own name due to succession process. Many people have missed out on prime land because of the fear associated with such processes. You should identify a good firm that can help you. You can probably consider buying land from a firm rather than an individual in such cases. There are also places where there is more than one title deed. This is more serious and not easy to handle. It occurs where the landowners have sold the land several times and also produced fake titles to the unsuspecting buyers. I can give you cases where people have faced such difficult but off the articles.
- Real estate professionals or firms operating in that area
Don’t ignore the role of a professional real estate firm. Such firm will ensure that you get a good title so that they keep good business name and also stand a chance of getting referral from existing or new clients. So don’t walk alone, find someone to help you.
- Demand in that area and demand factors
High demand for a commodity attracts malpractices. High demand create price hike. High demand means that you will surely get a better return for your investment. In sense therefore, high demand brings both positives and negatives. You need to be careful so that you don’t get corned for a land which doesn’t exist.
- Paperwork
This is the last key thing to take good care of. You should ensure your paperwork is good and can help you in case things go wrong. It’s also important that you understand the nature of paperwork involved.
