The best way to accumulate wealth is not solely through saving but rather by making strategic investments. However, the success of your investments depends on various factors, including where you invest, the timing of your investments, and the potential returns you anticipate, whether for future financial growth or asset acquisition.
Real estate, encompassing both property and land, remains one of the most popular investment avenues for individuals seeking to build their wealth. In Kenya's major cities, notably Nairobi, land has experienced steady appreciation over the past decade, resulting in limited available land for development. For instance, in Nairobi, only 10 percent of land remains undeveloped.
One critical aspect of successful investing is timing. Why should you consider investing in land during the first quarter of 2020?
1. Attractive Offers: Many businesses provide special offers and discounts during the festive season from December to January. The real estate sector is no exception, with land dealers often reducing land prices in the first quarter of each year. For instance, commercial land parcels measuring 1/8 of an acre in Malaa, Kangundo Road, are currently priced between Ksh1.8 million to Ksh2 million. Residential parcels of the same size in the same area cost Ksh800,000 through Fanaka Real Estate Ltd. Malaa, a satellite town along Kangundo Road, has witnessed rapid growth due to an expanding middle-class population in Nairobi and the rising demand for affordable residential land, as reported by Fanaka Real Estate Ltd. In comparison, land in Joska is selling for approximately Ksh949,000, while a similar piece of land (1/8 of an acre) in Kamulu retails for Ksh749,000.
2. Reduced Competition: Land demand typically experiences a decline in the first quarter of every year, resulting in increased availability. In a healthy business environment, when supply surpasses demand, prices tend to decrease. This principle also applies to land prices, as a substantial amount of land becomes available for sale during the first quarter. This means that, aside from lower prices, you can secure land in prime locations with greater potential for future returns, whether for residential, speculative, or commercial purposes. Additionally, reduced competition ensures a smoother and quicker processing of documents such as title deeds and property ownership transfers.
3. New Year Resolutions: Many individuals aspire to kickstart the new year on a positive note, aiming to accomplish significant goals throughout the year. Land dealers, like Fanaka, offer clients the option of extended payment plans for their land, complete with readily available titles. For instance, Fanaka's Plains View Gardens project in Malaa offers 1/8-acre parcels for Ksh550,000, including title deeds. By making a 30 percent deposit (Ksh165,000) and monthly installments of Ksh35,000 for just 11 months, you can acquire your land and title deed within the year.
Investing in land during the first quarter of the year can provide you with attractive opportunities and financial flexibility to achieve your investment goals.
