Important Questions to Ask Before Buying Land
Real Estate is one of the top long-term investment products that yield returns in Kenya. The beauty of this product is the existence of different investment packages in the market. Depending on your investment goal and purchasing power, anyone can start today to invest in real estate.
However, despite the affordability and availability of Real Estate products, newcomers in the industry are often overwhelmed and live in fear of being conned of their hard-earned money. To tackle this, you have to first do your due diligence and ask your realtor several questions. Here are some of the questions that cover important topics you should know about as a landowner.
What is the size of the land?
Most people who look into buying land, already have a rough idea on the use of the land. Some uses of the property include the construction of rental houses, race tracks, holiday homes while others use it for agricultural purposes. The truth is the opportunities that come with real estate investment are endless and this is why it is important to understand the size of land.
What is the location of the land?
Just like size location plays a major role in return for your investment in real estate. For higher returns, you need to consider the location of the land. Land located in upcoming towns or near major highways is likely to yield better returns. Currently, Nanyuki is a haven for investors due to its profitable tourism nature, accessibility of the Nanyuki – Rumuruti highway, and the ongoing rehabilitation of the Nairobi – Nanyuki railway.
What are the amenities available?
Before buying land, you should look out for social amenities and infrastructure in the area. The availability of infrastructures such as good access roads, electricity points, water sources and social amenities such as schools, hospitals, and places of worship is crucial in growth and development.
Who is the seller of the land?
You can ask your realtor about the Mother Title Deed of the land and can also conduct a search at the Ministry of Lands to confirm the names of the sellers/ owners. The search will also reveal if the Title Deed has any Caveat on it.
What is its tenure system?
Land tenure is the act, right or period of holding land and we have two types of systems in Kenya, these include: Freehold and Leasehold. The type of land tenure on the property will also determine the type of Title deed that you will receive.
Freehold land tenure gives the owner full ownership with no stipulated restrictions on use or occupation. The type of Title Deed given for this system is known as Absolute Title Deed.
Leasehold land tenure as the name suggests means that the land ownership is for a specific period and is subject to payment of a fee or rent to the lessor. The type of Title Deed given for this system is known as Certificate of lease.
If you have any more questions, contact The Wealthsmith company and a team of experienced realtors will help you meet your investment goals.