As we launch our blog, we asked ourselves what topic we should start with. Better yet, what topic gives our clients (readers) nightmares? During our brainstorming sessions, we agreed to start with a topic we thought would be, it. Investing in Real estate. The World over, investing is a topic that whets people’s appetite.
We hope that this blog post will do you justice, by whetting your appetite of course. If you have ever struggled with the idea of whether to invest in real estate or not, we would like to speak to you. Read on. In the process, feel free to leave your comments at the end of the post. Along the way, gather important tips that will see you well on your way to becoming the best real estate investor, Kenya is yet to see.
Where to begin? Oh, a quote. ‘Landlords grow rich in their sleep.’ John Stuart Mill. So, how do we cross over to the other side?
Property Search (Research)
Like any good student of both life and business, we all need to set out and find out more about that which we are interested in.
As a buyer, it is quite imperative that you decide what it is that you want. Write down, what specifications you are looking for in either land and or a house. ‘Do you want the residential property, commercial property, or even keep for future use say for capital gain?’ Says George Wachiuri.
Armed with your decision it’s time you made the right move. With many non-licensed Real Estate cons out there, we suggest that you involve an honest agent to help you search. This option is for those pressed for time. To those will time to spare, DIY (do it yourself). How? By visiting the real estate, websites that you might know.
You can also go to other websites provided they are in the real estate industry (Lamudi.co.ke). If you own a car, do a drive search, whereby you visit various sites, regions, counties, etc. looking for potential properties.
Identify the Property
You have spent time going around searching for what you would call your dream property. Rather, your real estate agent has come to you with good news, that he has located the property you wanted. Once you are comfortable that the identified property fits your criteria and your heart and mind are in tandem, move to the next step.
Which is? Analysis and evaluation. Heed this advice: It is very, very important that you meet the real property owner. If that proves difficult, as most property owners prefer anonymity (you know how billionaires are with their exclusivity) seek a meet up with the appointed agent.
Let them produce an appointment letter as the property’s agent. Either way, you are your foot is in the door, wear your negotiation hat. A tip in negotiation: always look out to get the best deal. Negotiate for the best deal in the market. Assuming that you have moved the property owner, you might just leave the site with an offer letter in-person or through your appointed Lawyers. Once the offer is accepted you need to go ahead and conduct due diligence.
Time to Lawyer up and conduct Due Diligence
Good for you: your workload is lessening by the day as you approach closure. Your lawyers (real estate agents) will conduct the due diligence and ensure that you are covered in the whole purchase process.
‘This is a very important step in property investment. You need to get a good lawyer to conduct a thorough due diligence in the lands registry offices. It is very important to verify the owner’s identification at the immigration, or if the property is owned by companies then check details with the registrar of companies.’ adds, George Mbogo.
This will only happen if there is a deal between the parties involved. The vendors and buyer’s lawyers take over the process. As a buyer, heed this advice: ensure that you get a credible lawyer who understands conveyance. If the property is funded by the bank, then you can get a list of lawyers from them. This makes it easier as the Bank has already sieved the best lawyers.
Deposit the agreed monies at the time of executing the sale agreement. Depending on the percentages agreed upon: 10% or 30%. Depending on your agreement, with the property owner move with speed and make payments.
Finalise the Transaction
once the completion documents are forwarded to the buyer’s lawyer upon exchange of the letter of undertaking, you, my friend are well on your way to becoming an official and legal property owner! For that congratulations.
The final payment for the property is paid within 7 days of the transfer and registration of the property in the favour of the vendor.
We hope that this post has been useful. The other option that we are offering is, enlist the services of a credible real estate agency and or company. With many mushrooming agencies, it would be wise to know where to take your business. The post might have indicated the whole property investment as a simple plan process.
It is not. As anything good, takes hard work. Nevertheless, if you are pressed for time and see that indeed the process is tedious: let us do the work you. For a small commission, we will deliver final papers to you.