Real estate is one of the safest ways to create lasting wealth, and it is attracting more and more people each year. Investing in real estate is an exciting and lucrative adventure, provided that you don’t fall into the pitfalls of the sector. The lack of experience of beginner investors can cause them to fall for many tricks. So, here are some of the real estate investment mistakes that most people do without knowing.
1. Not Investing in Real Estate
Not investing in real estate is the biggest mistake you will make with your finances. While it may seem a challenge to invest now in real estate because of the economic inflation, starting at small scale is the right way to go. Try and source for the affordable property located in strategic locations for you to invest in as there is always a bigger rate of appreciation.
2. Skimping on research
Before buying a car or a television set, most people compare different models, ask a lot of questions, and try to determine whether the purchase they are considering is worth the money. The due diligence that goes into investing in real estate in Kenya should be even more rigorous.
3. Buying Too Small
Real estate investing is one of the ideal ways in creating lasting wealth. For that reason, buy in bulk. It is much easier to sell an acre piece of land in Kitengela compared to a single plot. The same applies when even taking a loan from a bank against a big chunk of land over an 1/8th acre plot.
4. Buying the wrong kind of real estate
Yes, we do have the wrong kind of real estate. And that has nothing to do with genuineness of the property you’re purchasing. For instance, buying land in Rumuruti retailing at Ksh. 100,000 is the wrong move compared to buying land in Konza selling at Ksh. 500,000. This is because the land for sale in konza has a higher appreciation rate because of the upcoming developments within the area.
Real Estate investment in Kenya doesn’t first require you to have the money. It requires you to have the right information. You need to know what you are doing and you need to roll with somebody that understands this industry.