4 REASONS WHY YOU DONT NEED A LOAN TO ACQUIRE PROPERTY

Most (if not all) investors always agree on the fact that land is the asset you can invest in, where its value will almost always appreciate. That’s why most of us have a dream of owning a piece of estate, either for building a home, investing as a group or just as a means of creating wealth.

But for most young people, investing in real estate can be  a little  overwhelming due to varying factors such as lack of finances or the high capital required. Many turn to loans or accumulating debts from family and friends just to own a piece of land, while others give up on the idea all together.

Below find 4 tips from our investment advisers at Rosam Real Estates on how to kick start your journey of owning a piece of real estate and secure your financial future.

• Request for an installment plan

You have seen an advert on tv or heard it on radio, and you are interested in making the  investment. You have visited the site, done your due diligence and you are sure this is the investment you want to buy. But your savings are not enough and your bank manager wont approve your loan application.  To many, acquiring this piece of land can be an intimidating en devour and most Kenyans will give up at this point, hoping they will accumulate enough money in a few years to acquire the same or similar property. But this strategy never materializes because by the time you have saved enough, the property has already doubled in value.

At Rosam Real Estates, we came up with the Chamaa Package, a one of a kind package allowing you to book any of our properties and spread your payments upto one year. This package is not only ideal for chamaas due to their monthly contribution format, but its also ideal for individuals with a monthly source of income but not enough savings to make a one-off payment on the property.

• Start small, but start NOW.

You might be familiar with the famous quote by Chinese philosopher Lao Tzu:

The journey of a thousand miles begins with one step.

This all time quote has never been so true like in the real estate sector. You may be thinking that the money you have is too small to buy land, or a house. You might be surprised how market research and talking to the right investment advisers can offer investment packages and opportunities for the amount at hand.

Our advisers give a tale of two youths, A and B. Both youths have saved 50,000 each and are determined to own a piece of land one day.

Youth A decides its better to save his money in the bank for the next one year until it is enough to buy a piece of land in Kitengela. Youth B settles on a settlement plan such as the Chamaa Package, books his plot and pays ksh20,000 per month for the next one year.

At the end of the investment term, youth B is better off as his stake in the land has appreciated while youth B will have to save some more to buy at the new market rate.

The main idea is you dont have to buy a flat at the moment,or a plot in the centre of town. Its okey to start small, just start.

• Maintain your day job

If your regular employment is the one that provided the initial capital to make a the first step in investing in real estate, then dont quit it, atleast not yet.

Real estate only requires you to play a supervisory role as it appreciates to give you maximum returns. So continue working and investing in more real estate, because one piece of land does not get jealous when you acquire another.

• Invest as group

Josephine Njuguna, marketing and product development officer at Bank of Africa (BOA), while interviewing for the business daily, emphasized that chamas, or investing as a group, help people realise their goals quicker as opposed to going it alone.

This analysis has never been more true than to the owners of Norwich Towers. According to the Business Daily, to many a city resident, Norwich Towers many be a place where you grab a plate of chicken and chips as you catch up with a long lost friend, or a place where you meet for your friend’s wedding committee.

Little known to us is that this particular building is the fruits of 33 chama members who came together to form the Norwich union Properties Ltd, now owning property worth billions of shillings around the country.

But all this could never have been achieved through a single person. It is following this analogy that Rosam Real Estates structured the Chamaa Package, to offer assistance to Chamaas and other investment groups.

He who takes advice about investment from from one who is inexperienced in such matters, shall pay with his investment to prove the falsity of their opinions.

George S. Clason