Buying land has become the go-to option for many Kenyans keeping in mind that it is a lifelong investment. The process is, however, marred with scams which end up with the majority of people counting losses if it is not approached with caution.
In particular, Kenyans rushed to purchase land en masse in secondary nodes, and satellite towns that surround Nairobi. This trend was exacerbated by the pandemic- prompted by many companies embracing remote working and employees ditching rent-paying apartments to own affordable homes.
According to the Hass Property price indices for the third quarter of 2022, property prices recorded a 0.8 percent price growth- denoting a slow growth over the quarter.
This led to an increase in demand for land in satellite towns such as Juja, Ruiru, Kiserian, Kitengela and Ongata Rongai.
Others included Mlolongo, Ngong, Limuru, Thika, Ruaka, Syokimau, and Tigoni.
However, despite the surge in demand, it is vital to carry out due diligence before relocating in a bid to avoid the hustle of purchasing land all over again.
Kenyans.co.ke takes a look at five costly mistakes to look out for before purchasing land.
Buying a house instead of land
Arguably one of the toughest decisions for first-time buyers is to either buy or build their own homes. It is imperative for a buyer to weigh the pros and cons of each before arriving at a decision but according to real estate experts, building your own home will prove to be convenient in the long run.
According to Fanaka Real Estate, purchasing land and subsequently building a house means that you are involved in the step-by-step construction of the house. In addition, the resale value of a newly built house is high should the owner reconsider selling the home altogether.
"Building your own home reduces the cost that may arise from maintenance because what you have is a brand-new home, unlike buying a house that needs fixing of a few things for it to be fully functional," read part of a statement by Fanaka Real Estate.
Fanaka also cautions buyers to consider that when purchasing an already-built house, the price of the land is always factored in.
"Most people, especially those living in the city believe that buying a house is cheaper than buying land and building, but what they don’t tell you is that even if you go and buy that house, the price of land is always factored in."
Proximity to City Centre
A spike in real estate developments is sometimes occasioned by the proximity to the city centre filled with offices, recreational facilities, parking bays, and restaurants among others.
For first-time buyers who don't factor in this, purchasing land close to the city centre will lead to you spending much more as opposed to a remote property.
In addition, the environment in remote areas is very conducive for settlement due to less congestion as opposed to towns close to the Central Business District (CBD).
Land rates, however, vary from one location to another based on various factors such as size, location, accessibility to roads, electricity availability and water.
Overlooking Transportation costs
Settling for that prime piece of land could be lucrative at first but at times incur higher costs, in the long run, should a buyer overlook factors such as transport.
Buyers seeking to relocate to satellite towns should factor in transportation costs to and from their place of work, especially if it is within the CBD.
This, however, favours car owners who have the option of manoeuvring and looking for shorter routes to their area of work.
For instance, a resident in Makongeni, Thika who travels to Westlands on a daily basis intimated to Kenyans.co.ke that he spends on average Ksh500 daily on transport and at times has to take a boda boda after arriving in CBD in order to beat traffic on Waiyaki Way- which doubles the cost as the riders capitalise on the prices during peak hours.
Peer Pressure and Poor Research
Poor choices are often driven by inadequate research as some factors are not considered when arriving at those decisions. For some buyers, following the crowd blindly and not conducting their due diligence leads to heavy costs in the long run.
When conducting property transactions, do thorough research on land to ensure that you don't fall prey to conmen.
According to an article by Commercial Property Kenya, conducting a land search at the Ministry of Lands office and also acquiring legal representation in other cases would prevent you from making wrong decisions.
"It’s unfortunate that most buyers do property transactions, fingers closed that no issue will arise later. This is the most dangerous thing to do as a buyer since hope is not enough; who knows, you might already be working with con men. Doing thorough research on land before buying it is a critical step that most people ignore," according to the article.
Overlooking Amenities
Real estate experts opine that purchasing land should be in line with what is important to the buyer. For a family with young children, proximity to social amenities such as schools, and hospitals, are key factors to consider.
Others include electricity, water, transportation and security.
Once a buyer carries conducts due diligence, they are able to make sound decisions on the prime land to purchase.
Tarquin Gross, head of the residential agency at Knight Frank Kenya, pointed out that buyers were still willing to negotiate in a bid to transact.
"There is a strong desire from buyers to find good value properties. There has not been much certainty over the last two years with the pandemic and elections. With that all behind us buyers are keen to transact,’
“Sellers at the beginning of 2022 were willing to take up to 15 percent less than their asking price and although sellers aren’t now willing to take as much as 15 per cent they are still open to offers," he stated as quoted by Business Daily.
