Investing in real estate

By Frank GICHUHI

Real Estate is one of the best ways to invest your hard earned money because the land is a scarce resource and as long as world population continues to grow, land will continue to appreciate in value.

A few years ago [2003-2005] an acre of land was sold to Karen KES 3.5 million. Currently [2010] Earth The same goes for Ksh 18 to 20 million. An acre of Runda sold for Ksh 4.5 million in 2003. Currently, the same acre now sells about 20 million KES.

Property investment is also very flexible in that it welcomes every size budget. The amount of money you can raise will play a large role in determining the scope of the investment. You can start a very small scale and go up the ladder. For investors in small-scale ideas such as buying a small plot of land near the main town and keep it for some time that can range from several months to several years can help it.

PROFIT by speculation

One of the quickest ways to earn profits in real estate is speculation. Country, far from major cities is generally lower prices. For example, land in areas such as Kamulu, outskirts of Nakuru, Lamu can cost about Ksh 300,000 per acre. This land will certainly cost much more as time passes and development catches up. Once you wear to intensive research on the lands of low value and get inside information on new developments, is a good time to buy while the price is still low.

For example, there are future plans to develop as a port of Lamu. People who buy now, while the land value is low will take a great benefit years later. There are also plans to expand commuter rail between Athi River and Nairobi. This will also lead to a sharp increase in land prices in surrounding areas such as Kitengela once the project is completed. The bypass long Ruai, Juja and Ruiru also lead to an increase in land prices being there. In Nairobi CBD area Muthurwa expand significantly once the South-East of the park is fully developed. Along Mombasa road, plans are underway to develop the town ICT Malili ranch. All these elements create great buying opportunities and unloading later on the market once the developments are completed.

Profit per DEVELOPMENT SCHEME

Another method to make money in real estate development is buying a piece of land, subdivide it into smaller parcels and the development of infrastructure such as electricity, roads and water. Once the infrastructure is developed, the plots are then dumped on the market at a profit. Areas such as Syokimau, Kiambu, Ongata Rongai are ripe for this kind of development. Areas such as Kahawa Sukari were developed by this kind of method. Development Control is then forced through the establishment of a Community company to approve a new developments specific standard.The prevents poor quality buildings that reduce the value of land to develop.

PROFIT by construction.

In areas where large pieces of land are not available, such as South C, Langata, Commercial Southeast Park [Muthurwa], etc. Westlands, a good way to make profit through the construction of buildings. Since land is not available in abundance sideways, the buildings are stacked on each other for several stories that may be approved by the local authority. The use of creative architectural drawings will help unleash the full value of the investment through drawings that fully and optimally utilize land and are also attractive to potential buyers thus creating competition. The buildings are sold as individual units or rental.

CONCLUSION

Its common knowledge that the three rules for successful investment in real estate are

1.Location
2.Location
3.Location

So you need to put a lot of resources to find the best place that has a value that has not been fully exploited.

Knowledge within and in the future it is planned to develop infrastructure such as a bypass, university, hospital, etc. extension of the city became very critical in determining your investment. For example, the first white settlers had prior knowledge that the Imperial British East Africa Company will make the capital Nairobi and areas such as area Hurlingham and Westlands higher class shopping malls. In the meantime, an acre of land was very low. Currently, several years later, an acre of land in the Westlands detail can KES 180 million if the initial investors who took the gamble laughing all the way to the bank. This is your time to look down as the land. Good luck.