FACTORS TO CONSIDER WHEN BUYING ANY PIECE OF LAND.

There are several things any potential land buyer needs to consider when buying land to make the exercise smooth sailing and satisfying. We have listed some of the major ones below, just to give our readers some clue.

These are :-

1. LOCATION:
This is the major factor affecting price considerations. 
For instance, Half an acre of land in Maki Estate or Riverside Estate in Thika costs about 5 times more compared to say Majengo or Makongeni areas. However, However, both Majengo and Makongeni areas are quite ideal to putting up residential flats to let. The location of the land you wish to purchase should indeed conform to your Kenya real estate development objectives.
Lands located in urban areas too tend to be more expensive than those in rural areas. One therefore needs to consider the location depending on the purpose for which they buying lands in Kenya. For instance, land in rural areas are preferable when considering Agro-business while those in urban areas are good when considering construction of a commercial building.

2. HISTORY:
It is always advisable to check out on the history of a particular farm for the purposes of ensuring that they surrender the money to the correct people. This is meant to check the authensity of the piece you are about to buy. Are there disputes related to the parcel, Is it on public utility, Is this person the real owner? etc. 
Of late, there has been so many cases of people being conned of their hard earned cash in the pursuit of this precious commodity called land. People are being exploited and cheated into buying land that has for a longtime been proven to have a lot of scandals or land that belongs to someone else or the government. This information can be obtained from the original owner in case of secondary transactions, neighbours, area administrators and elders, the county government especially in area where they pay rates and from Survey of Kenya.

3. PRICE:
This factor is never static and keeps appreciating each and every day. However, some people, especially where land agents (brokers) are involved, have been taking advantage of the practice to reap much from innocent Kenyans.
It is advisable that before buying land, one should do a thorough research of the market rates of different areas as well as consulting with real estate experts to be sure of buying land at a good price. 

4. DEVELOPMENTAL OUTLOOK:
Are you buying land for residential or commercial purposes? Do you want to build your home, flats to rent or shops to let? Your answer to these questions should determine the location of the land you should buy. For instance, if you want to build flats to let, consider areas with close local facilities such as supermarkets, schools and health care facilities. Many families prefer to live only a couple of miles from their children’s school. This will therefore affect where they rent a house.

5. SECURITY:
It is advisable to avoid buying land in places where one's security is not guaranteed. One should go for places that have stable security and that farming or building around the areas will not be a bad idea for one to invest in. One should, if possible, avoid areas that are miles away from the police departments, shopping or urban centres.

6. AVAILABILITY OF SOCIAL AMENITIES:
Is the area well serviced with roads, water, security, schools, hospitals, shops? Is there a fire department near you? How about an ambulance? How close you need to be to such services will depend on many things, your health is one of them. If those utilities are unavailable in the area, what is their accessibility if at all you may need them? How much driving will you need to do on a daily or weekly basis? Find out your proximity to the needed resources in your land for example food, shopping, schools medical services etc

7. ACCESSIBILITY:
Can you reach your house at night? Are there readily available means of transport? What happens when it rains, are the roads passable?

8. DISTANCE FROM THE MAIN INFRASTRUCTURE:
How far is it from the main tarmac, bus or railway station? For example the value of land and property along Thika Road or the Eastern By-pass greatly increased as a result of the construction of the said infrastructure.
The further out you go from the main road, the cheaper the parcel of land. However, security may also be compromised. If you are buying land with the objective of building rental property, you may have to contend with lesser amount of rental income if you build it far out from the main road.

9. ACCESSIBILITY TO ELECTRICITY AND OTHER COMMUNICATION LINES:
Lack of these facilities makes the land cheaper though, but one should ask themselves the question, at what cost? 
Electricity is the source of power all over the world today and almost every sector uses electricity for its day to day operations. Whether its agriculture, Information Technology, Communication or even science all require energy to operate. It has become almost impossible to do anything without electricity. 
It may be cheaper to buy land in areas with no electricity but one must be prepared to bear the extra costs and delays. 
Good communication networks that is strong telephone and mobile phone signals is an essential component when considering buying lands in Kenya. This is more important for those investors looking to set up business empires. Business cannot be conducted without communication.

10. WATER:
Water is a very important consideration when buying lands in Kenya. For those buying land for farming, they will need water to irrigate crops. Water is also needed when buying land to construct rental property. The value of a house with piped water is higher than that without piped water. Investors need to consider buying land where it is easier to access water. 
So, if the site has no piped water, do a research on how deep one will have to drill to access it and also the flow rate of the well. One should also enquire if they do have rights to surface water to avoid getting into trouble with the authorities.

11. SOIL TEXTURE:
Soil texture does affect Kenya real estate value because it affects the building costs.
Areas with black cotton soil tend to be cheaper as compared to red soil regions. This is because it will be mandatory for the developer to clear all the cotton soil on their site before erecting their structures. Black soil cannot hold the weight of a house. It is also known for flooding since it does not hold water or release water runoff easily.

12. SEWER LOCATION:
Some areas have sewer restrictions and thus not suitable for certain types of Kenya real estate development. In some areas, developments of major projects have been restricted dues to overloaded sewer or lack of it altogether. If one intends to build an apartment complex for sale or to let, they have to check the sewer restrictions as well as other planning restrictions issued by the local county governments.

13. BUILDING SITE APPROVALS:
The potential investor should find out if the area in question is controlled. They should investigate from the local county offices if there are plans for orderly settlement. 
Further still, they should tell from the same authorities whether the site has all the necessary records for their kind of developments. They should also check whether county government rates (if any) have been cleared and if the names in the documents in question coincide with those in the title deed. 

14. TREND OF DEVELOPMENT: 
The potential developer needs look at what is coming up in the area. For instance, what are the upcoming major landmark projects around that area; say major roads, institutions and other government projects. 
If the development is of good standards, then one sure that their property is in a prime area.

15. PERSONAL PREFERENCE:
 Do you like the area? If yes, what is special or what attracts you? Does the land feel right in your heart? Is it something worth investing your money in the area?
One needs to find out if the land they are planning to buy feels ok for them before go ahead with the transactions.

16. VENTILATION:
Does the parcel provide adequate natural air flow to ventilate and cool the home for their own comfort as they plan to settle there? Does it have enough space to live the life they want to live?

17. ESSENTIAL PUBLIC DOCUMENTS:
Title deeds, Share Certificates (for land buying companies), transfer documents, sales & payments receipts etc very are important as they act as crucial determinants in identifying the owners of a particular parcel of land. It is therefore important that one should be persistent in demanding these documents so that they can act as security for land and be used to proof of purchase in the future.

18. SELLER:
Though it can be alluringly cheaper, convenient and faster to work directly with the seller, the risk involved in this kind of transaction is extremely high. This is because the seller may provide you with false information during the transaction or even fake documents after the payment. There are also chances of dealing an imposter pretending to be the owner of the land.


Labels:

Post a comment

[facebook]

Author Name

Contact Form

Name

Email *

Message *

Powered by Blogger.