Most would-be landowners view the process of buying land as a scary venture that is risky to their finances and even life. The horror stories depicting harrowing stories of hapless land buyers duped of their life savings don’t make the situation better. However, with the right information, you can invest in real estate without as much as a scandal or losing sleep. Also, you will discover that most of your unfounded fear is based on misconceptions and myths. We demistify some of the land investment myths you might have heard from others.
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Myth 1: Land is land. So, why pay higher for some land?
Land prices differ based on various factors such as the location, size, land rates, land use and other factors. Not all land is the same and you need to have all these considerations in mind as you plan to buy land.
Myth 2: I need a lot of money to invest in land
Your worry as an investor should be on why you need the land and if it will meet your current needs whether you want to build or buy a home. As mentioned above, the price of land is dependent on several factors. So, the size of the land and its location will determine the cost. Also, you can get help financing your land investment in the form of a mortgage.
Myth 3: Land values grow slowly
Growth in the value of land mostly depends on whether it is prime land or not. If the land is far away from residential or urban areas, its value will grow very slowly over time, unlike land that is close. So, where you buy land determines how fast its value increases.
Myth 4: I need special skill and knowledge to invest in land
Just like any other investment, there are risks involved. You would want to know about the pros and cons before investing. Other than that, you don’t require technical skills to invest in land. You can, however, inform yourself as much as you can through your own research on buying land in Kenya or you can enlist the services of a local seasoned real estate agent to help you.
Myth 5: I need to buy now or the deal will go away
Be wary of ‘deals’ that have an urgency attached to them. Unless available land in a specific area is scarce, you should never be in a hurry to buy otherwise you will encounter land scammers. You could see red flags and ignore them just because of the offer at hand. Take time to know about the land, the seller, history of ownership, land act regulations and then sleep on it.
Never make an investment in a hurry.