Real estate is a good investment in Kenya because the returns are very high. There is a high demand for land and homes. The supply is deficient, and the demand for property is skyrocketing in Kenya.
The value of the property appreciates in a relatively short period.
There is one of the many profitable ways of making money via land dealing. Buying a large track of land and sub-divide it into small portions.
This makes you a land dealer because you buy land in acres. Sub-divide it into smaller plots and sell to willing buyers.
Some buyers could buy to build homes or rental properties. Others might buyer to hold and sell at a higher price in the future.
After you sub-divided the land you will have to sell the smaller portions of land. These smaller portions are known as plots.
If one acre of land cost you 2 million, you could end-up making 6 million in gross sales. All you need is to sub-divide the land into one eighth (1/8) pieces (or plots of size 50 x 100 square feet.)
Sell a single plot at Ksh.750,000. After expenses, you should make at least 3 million in net profit.
Investing in land may seem to be easy. People make money every day from buying and selling land.
Those who are successful in this business have done well their homework and have perhaps learnt some important investment lessons the hard way.
Investing in land like any other business involves risk taking. As an investor, you should be putting your money into an asset while ready to face any challenge as well as setbacks that may come along.
There are several pros and cons to investing in land.
One ought to be very careful before investing in any land because many have burnt their figures while bidding for the same.
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