Investing in Real Estate in Kenya. Risk Management.

Investing in Kenyan Real estate poses several risks as outlined below.

Market Risk.

This risk is associated with feasibility. The investment is supposed to have a feasibility study done so as to know and ascertain which market segment to target. For example, an investment in Kileleshwa/Kilimani will have a different design from an investment in Kiayole/Dandora areas due to different market segment targeting.

a4architect.com carries out detailed feasibility studies for investors. The a4architect.com sectional property investment where investors can own a maisonette or bedsitter apartment block under sectional title usually has detailed feasibility studies done to ensure the right customers are targeted for the investors. In the coast region, Nakuru, Nairobi, the Airbnb target market is usually a safe bet.

Physical Property Risk.

These are risks such as construction structural failure like the one that happened recently[2021] at a condominium in Miami

https://nypost.com/2021/07/22/condo-collapse-victims-to-get-150m-in-compensation-florida-judge/

A4architect.com ensures that all buildings designed and constructed for investors in the sectional property investment go through the highest engineering designs standards as stipulated in the Building Code.

A4architect.com also designs the buildings in such a way that long term maintenance is reduced through careful selection of building materials and finishes that are long lasting and cost effective.

Liquidity Risk.

This measures how easy and fast it is to sell off the property after investment. It also measures how much the property is supposed to appreciate in value after investment. A4architect.com ensures that the sites available for sectional property investment are located in prime areas such as close to beaches around Diani or close to Eastern Bypass in Utawala area. Investors in such locations can easily find a buyer for their properties and at a higher sale price than they bought it since location is very prime. For example, a maisonette sectional property land located at Utawala, 200meters from the Eastern Bypass, selling at kes 750,000 per sectional property, will appreciate in value and easily offload into the market faster than say a kes 750,000 plot of land located further down Kangundo road in Malaa area.

The Utawala sectional property, even tough smaller in surface area than the Malaa larger one, has got more potential since investor can opt to build own residence and easily commute to and fro to work safely or build bedsitters or a 4 bedroomed maisonette and rent at a good rate compared to the Koma/Malaa/Joska plot where commuting to and fro to work and getting a good rental income is a tall order.

Invest now.

A4architect.com Sectional Properties are available for investors from various ranges between kes 400,000 to kes 3,000,000 per sectional property in different prime locations around the country.

Architect Francis GichuhiKamau.

gichuhi@a4architect.com

0721410684


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