Tips to Succeed in Commercial Real Estate Investment
The Kenyan investment habits have evolved over the years as we are witnessing a generation that is more involved in their financial decisions towards a secure future. With easy access to investment research, a quick survey reveals that people are looking for channels to inject their funds for growth. Despite this curiosity and initiative, the challenge most face is settling down on a profitable investment. Investing is indeed a brilliant way to build wealth and make money work for you however, the type of investment will determine the direction of your financial future.
Kenya has one of the fastest-growing economies in Sub-Saharan Africa and with this growth comes an increased demand for more commercial and residential properties. Real estate is one of the best investment strategies you can embark on over other options. This long-term plan is ideal especially for those striving to diversify their wealth portfolio. Here are tips that will help you succeed in commercial Real Estate investment in Kenya.
1) Know the game
The same way you cannot fly a plane if you are not a pilot, you cannot invest in Real Estate if you do not understand the ins and outs of the market. Knowledge about the Real estate markets and trends associated with it will place you in a better position to make more out of your commercial property. Consult a trusted realtor in case you have any doubts about your investment. In Kenya, companies such as The Wealthsmith Limited are available for consultation on land acquisition.
2) Take your time
Never rush into a purchase even when you have the required money ready. Take time and study an area, its population, and learn more about the project before investing especially commercial property. Find out if the area has potential for business-related activities and its population growth rate. This type of research will play a major role in determining the size and location of the property you choose to invest in.
3) Invest in what you can afford
Some investors make the mistake of purchasing a property that they cannot afford. How do they do this? Simple, they get a loan. Most think that they will repay the loan from the money that they make from the commercial property every month. While this sounds wise, it only seems so in theory. The reality is several underlying factors will determine your return on investment. For instance, what if no one rents the property immediately? Whatever you do, ensure that you can meet and cover the costs that come with owning a commercial property on your own.
4) Scout before settling
The final tip is to visit various properties in your preferred area before making a decision. The Wealthsmith Limited understands that client’s needs vary and this is why they have an array of property listings in different areas. Instead of only looking at one location, you can view more properties and this will give you a comparison to help you make the best Real Estate investment for you.
Contact us today for more tips on making the right investment decisions in Real Estate.