Reasons to Invest in Real Estate in Kenya
Real estate is regarded as a wise investment due to its perceived high yields and built-in defense against inflationary pressures. The Kenyan real estate industry is one of the strongest markets in the continent. The country’s population is constantly growing, and many real estate investors are looking to the capital- Nairobi as a place to invest in property due to the potential for appreciation and the opportunity to earn extra income through rental property. The prices of property continue to rise which makes Kenya a great place to buy a property and allow it to appreciate.
The following are a few of the reasons why you should invest in Real Estate in Kenya Today
Diversification
Your financial diversification is increased when you include real estate, which helps shield you from market fluctuations. In the case that a downturn in the economy is causing some equities to suffer, a portfolio of investment properties may still be rising in value, shielding you from the losses of your other assets
Consistent Cashflow
Real estate ownership might increase your monthly income. You can rent out your space to tenants whether you invest in residential or commercial real estate. Rent payments will thereafter be made to you each month
Resistance to Inflation
Investments in real estate are seen as inflation hedges. Home values and rentals often rise along with growing product and service prices. Therefore, investment homes can offer you increasing monthly income and appreciation to assist safeguard your finances while the cost of everything else rises.
Increased Profit
You can sell the real estate you own for a healthy profit if its value rises over time. But keep in mind: Recognition isn’t a given. To get those high profits, you must invest in the right kind of real estate.
Residual Income
You don’t have to work every day to get the much-desired passive income that investment properties provide. A case scenario of owning a single-family or multifamily property and charging rent. Monthly rent payments are an illustration of passive income.
Financial Stability over a long period of time
Real estate can be held for a number of years while you wait for it to appreciate because it is a long-term investment. While you wait for your property’s value to increase, you may also make a monthly income by renting out your real estate.
Capital Development
Increasing your cash, sometimes referred to as building capital, is a major objective of real estate investing. You will increase your capital when you sell a property whose value has increased. Investing in the correct properties that will increase in value is key.
Tax Benefits
Real estate investing has tax advantages. Your property taxes, mortgage interest, property management fees, property insurance, the cost of ongoing maintenance, the cost of repairs, and the money you spend advertising your property to potential renters are just a few of the costs related to owning an investment property that can be written off. The gain you realize if you sell your property for more than you paid for it, won’t be subject to income tax. Instead, it will be subject to capital gains tax, which has generally lower tax rates than income tax.
Financial Leverage Capacity
Real estate leverage refers to the act of buying properties with the assistance of other people’s funds. In this scenario, it involves gaining financing from banks, mortgage companies, or credit unions and gradually paying it back. By doing this, you may increase the amount of real estate you possess without having to pay the whole price to do so.
Satisfaction and Control
Other advantages that aren’t financial come with owning investment homes. Owning investment property lets you be your own boss, which many investors find rewarding. Providing rental housing or attracting companies to commercial sites that will offer much-needed services to local communities are other ways you may make a difference in your neighborhood