29/06/2021
*5 THINGS TO CONSIDER BEFORE BUYING LAND*
#1: Have a clear investment goal.
You need to be clear on the reason for buying a piece of land. This clarity helps to guide your decisions
If your goal is to accumulate assets, look for land in areas that you may want to settle in someday.
If your goal is to grow your savings, look for land that is not on the beaten path. Meaning, don’t get land that is not in a well-planned area.
If your goal is to have passive income, look for land in a place that is populated, where there is a need for rental units, either residential or commercial. Building rentals will also give you a quicker return on your investment.
If your goal is to make a long-term investment, then you can buy land that you are not in a hurry to put into use. It can be off the beaten path in places where there isn’t a great amount of development.
#2: Decide how much you want to spend.
It is critical to determine how much you want to invest because it determines where you can buy. For example, buying a piece of land within Nairobi will cost you more per acre than buying land in a non-metropolitan area. Buying land also means tying up cash for a significant amount of time. The land is not an asset you can liquidate on short notice. Therefore, consider getting a piece of land that will not put too much pressure on your finances.
#3: Would you like utility services in place?
Depending on your end goal, the land you buy may need to have utilities already installed. The most basic are water, sewer, and electricity. Utilities play an important role in an area’s development as well as the land’s value appreciation.
#4: Be clear on the duration of your ownership.
Think about how long you want to hold the land. If your goal is to grow your savings, it is important to buy in an area that will be attractive to buyers in the future when you plan to exit. For example, when you buy a piece of land that is near a proposed development, you are likely to get higher Re