Opportunities for Owning a House in Kenya
The benefits of owning a house in Kenya are unmatched. This investment opportunity provides you with a seamless way to build equity, save for your future, increase your credit, and maximize government tax reliefs.
While the real estate market in Kenya keeps on booming, owning a house has increasingly become easier. There are several ways you can own a house in Kenya depending on your needs and goals.
In Part 3 of the “Home-Haven Series by Axis Assets,” we take you through these opportunities to help you save money and time when your time comes to own a house in Kenya.
- Outright Purchase – Buying an Already built home
This opportunity allows you to buy an already built and in some cases already furnished home, using your funds or through mortgage funding.
- Rent to Own
Opting for this opportunity allows you to lease a property/house for a defined period (months or years) with an option to buy when the lease period ends.
There are two types of “Rent to Own” agreements i.e
- Lease Purchase is where you are legally bound to purchase the house when your lease term expires.
- Lease Option Purchase which allows you to have the option to buy or not to buy when the lease period comes to an end.
This is a prime opportunity for individuals who don’t want to purchase a house outright and would prefer to spread out their payments and avoid huge interest fees.
- Cooperative Housing:
Cooperative societies which include investment groups and SACCOS (Savings and Credit Cooperative Organizations) partner with their members to offer home loans. Additionally, this method allows members of the societies to contribute money towards a housing project, and upon completion, the cooperative society assigns units to its members based on their contributions.
- Off-Plan Buying
Off-Plan buying provides you with an opportunity to purchase a house before or during the construction phase. It mostly requires you to pay a deposit and spread the rest of the payments while construction is in progress.
The advantage of this opportunity is that you will purchase your house below its market value. NOTE: You should ensure you do your due diligence before buying off-plan properties.
You can also own a house in Kenya by pooling resources with one or more individuals. This may include, family members, friends, or business partners. Through this opportunity, you can distribute your financial burden and make home ownership affordable.
This opportunity allows a property to be passed down from one person to another as a gift or endowment. You will only incur the property transfer costs when you opt for this opportunity.
- Government Housing Schemes
The Kenyan Government has implemented several initiatives to promote home ownership in Kenya. This includes projects such as Affordable Housing programs and the National Housing Corporation projects. These government housing opportunities provide financing options and affordable housing units to eligible individuals.
Lastly, if you have the resources and want to actualize your dream home, you can consider building your own home. This opportunity involves, purchasing land and overseeing the entire construction process by managing it yourself or with the help of contractors.
The above are some of the common ways and opportunities to own a house in Kenya. It is important to consult with a professional to be able to understand the home-buying process to guide you in making the right decisions.
Check out Part 4 of the Home-Haven series, “The home-buying process in Kenya ” as we continue to empower you through the world of home-buying in Kenya.