| INVESTING IN REAL ESTATE. | | | | PROFIT THROUGH SCHEME DEVELOPING |
| | | | | Another method of making profit in Real Estate |
| | | | | development is in buying a piece of Land , |
| Real Estate is one of the best ways to invest | | | | subdividing it into smaller plots then developing |
| your hard-earned funds since land is a limited | | | | infrastructure such as electricity, roads and water. |
| resource and as long as the world's population | | | | Once infrastructure is developed, the plots are |
| keeps rising, land will continue to appreciate in | | | | then offloaded into the market at a profit. Areas |
| value. A few years ago[2003-2005] an acre of | | | | such as Syokimau, Kiambu, Ongata Rongai are |
| land in Karen was sellng at KES 3.5 million. | | | | ripe for this kind of developing. Areas such as |
| Currently [2010] the same land goes goes for | | | | Kahawa Sukari were developed through this kind |
| KES 18 to 20 million. An acre in Runda was selling | | | | of Method. Development control is then enforced |
| at KES 4.5 Million in 2003. Currently the same acre | | | | through setting up of a community company to |
| now sells at around KES 20 million. Real Estate | | | | approve new developments to a specifi standard |
| investment is also flexible in that it accomodates | | | | .This prevents shoddy buildings that reduce the |
| every size of budget. | | | | land vsalue from being developed. |
| The ammount of money that you can raise will | | | | |
| play a big role in determining the scope of | | | | |
| investment. You can start on a very small scale | | | | PROFIT THROUGH CONSTRUCTION. |
| and continue up the ladder. For small scale | | | | |
| investors, ideas such as buying a small piece of | | | | In areas where large peces of land are not |
| land far away from the main city and holding it | | | | available such as South C, Langata, South East |
| for a while which can be anything from several | | | | Commercial park[Muthurwa], Westlands e.tc, a |
| months to a few years can assist in this. | | | | good way of making profit is through construction |
| | | | | of buildings. Since land is not available abundantly |
| | | | | laterally, the buildings are stacked high onto each |
| PROFIT THROUGH SPECULATION | | | | other for several storeys as can be approved by |
| | | | | the Local Authority. |
| | | | | Use of creative architectural designs will assist in |
| One of the quickest ways to gain profit in Real | | | | unlocking the full value of the investment through |
| Estate is through speculation. Land away from | | | | designs that fully and optimumly utilise the land |
| major towns is usually lower priced. For example, | | | | and are also attractive to potential buyers hence |
| Land in areas such as Kamulu, Nakuru outskirts , | | | | creating competition. The buildings are either sold |
| Lamu can cost at approxmately KES 300,000 per | | | | as individual units or rented out. |
| acre. This land will definately cost far much more | | | | |
| as time goes by and development catches up. | | | | |
| Once you carry out intensive research on | | | | CONCLUSION |
| low-value land and get inside information on new | | | | |
| developments, this is the right time to buy whle | | | | Its common knowledge that the three rules to |
| the price is still low. For example, there are future | | | | fruitful investment in real estate are 1.Location |
| plans to develop Lamu as a port. Peolple who buy | | | | 2.Location 3.Location You therefore need to put |
| now while the land value is low will reap great | | | | alot of resources in finding the best location that |
| benefits yearsa later. There are also plans to | | | | has a value that has not been fully tapped. |
| develop the commuter train between Athi River | | | | The inside knowledge that in future there are |
| and Nairobi. This will also lead to a high increase in | | | | plans to develop infrastructure such as a by pass, |
| land price in the surrounding areas such as | | | | university, hosital, city extenson e.t.c become |
| Kitengela once the project is complete. | | | | very critical in determining your investment. |
| The by-pass along Ruai ,Juja and Ruiru will also | | | | For example,the early white settlers had prior |
| lead to an increase in the current land prices there. | | | | knowledge that the Imperial British East Africa |
| Within Nairobi CBD, Muthurwa area will develop | | | | company will make Nairobi the captal city and |
| greatly once the South East Commercial Park is | | | | zone areas such as Hurlingham and Westlands as |
| fully developed. Along Mombasa road, plans are | | | | high class commercial centres.By then an acre of |
| underway to develop the ICT city at Malili ranch. | | | | land there was very low. Currently, many years |
| All these create great opportunities for buying and | | | | later, an acre of land in Westlands can retail at |
| later on offloading to the market once the | | | | KES 180 million so the initial investors who took |
| developments are complete. | | | | the gamble are laughing all the way to the bank. |
| | | | | Its your time now to also get down to seek such |
| | | | | lands. Good luck. |
