Investing In Land, Part 1

Over the last one and a half decade, buying and selling of land has experienced an exponential boom in Kenya. It has become the surest bet for making wealth as urban centres grow and the demand for housing increases. For some people buying land can be attractive; it is the chance to make an investment, especially in an upcoming area. If you want to build a commercial property or house from scratch owning the land yourself can be useful. Some people purchase land because they see it as a safer investment than property.

Being an important form of investment, there are several factors to consider when making the investment decision.


  1. Background Check

Never make a blind transaction when it comes to buying property. It is your number one duty to confirm the authenticity of any property that you intend to buy. If you’re buying land, employ the services of professionals to help you conduct a land search. This will help to ascertain that the person selling the piece of land is the real owner and that it’s free of encumbrance.  You will also need to do a thorough background check on the land to avoid fraudsters and conmen. Visit the site of the land for sale to ascertain its existence as well as confirm it’s the same size you’re buying.

  1. Location

This plays a big role in determining the value attached to a property. Property that is close to the main road and developing areas will cost more than those further in. For instance; buying land at Naivasha would be a really good idea since the second phase of SGR is under construction. This means that if you have an intention of buy-to-sell, you will be able to sell it at a high profit since the value of the land is likely to appreciate faster. You may also want to consider the possibility of flooding in low lying areas as opposed to those in the raised ground for example; Mandera County is a flood-prone area compared to Kiambu County.

  1. Developmental Outlook

The purpose of buying land will determine the property you should buy. Whether it’s for commercial or residential, you need to have a well laid out plan. For commercial property, you’re better off buying at a prime area that is close to social amenities such as water, electricity, drainage system, good infrastructure, hospitals, supermarkets, churches, schools, and business. A residential house, on the other hand, may need a quiet place but not too far from major facilities.

At Amica, we help our customers Plan Smarter to Live Better by ensuring they invest in their future. 

Do you need a financial friend to walk the financial journey by you? Talk to us on 0729333444