Investing in real estate has become popular in the last decade and is a common investment vehicle. In Kenya, investing in real estate can give one big gains because there is still high demand especially for residential properties.
Online property portal, Lamudi looks at three basic parts involved in investing in real estate as a beginner:
Step 1: Buying
The first part of the process involves; finding a property and financing.
• Find a property
In this day and age it is very easy to find a house for sale without leaving your desk or the couch. We have so many real estate portals that allow you to compare prices in different areas in order to get a property that is within your budget. Finding a property is the first step to investing in this sector. Some of the important factors to consider when looking for a property include; budget, location and re-sale value. These factors will determine how much profit you will get.
• Find Financing
After you have done your homework, look for financial opportunities. One can borrow from the banks, credit unions, mortgage brokers and owner-financing deals. Do your research and know what is available to help you buy a property.
Step 2: Renovating
Once you have bought the property, the next step is to renovate the house in order to get more value. Check for leaks, cracks and any other issues in the house. Renovations should be part of your budget because it increases the value of the house.
Step 3: Leasing or Selling
This is the final part of the process. The research done in the first process will help you know how to price the property because; you had a chance to look at different properties in that area with the same qualities. Don’t settle for less just because it is your first time investing, be patient throughout the process so as to get the best return on the investment.