Answer: This is a classic situation of what is happening in our country. A majority of people who are either employed or self-employed do not have high income levels. Once the basic needs; food, shelter, clothing amongst others are taken care of, it leaves very little to invest. However, there are various options that one can look at, but remember, Rome was not built in day, and you cannot own that big property just like that. Even at an individual level you need to start with an investment plan. Reach out to the existing partnerships that you have with your bank and take advantage of the different partners working with your bank. Explore use of saving. If you spend Ksh. 20,000 every month because it cannot buy land, how about you save that amount every month for a year giving you a total of Ksh. 240,000 at the end of the period and see it transform into property. Chama’s are also a very good option
Chama’s are also a very good option.
The Chama concept of pooling of resources is a sure step to allowing you to become property owners. Take a scenario of a group consisting of 30 Chama members each contributing Ksh. 5,000 for a period of 12 months resulting in Ksh. 1.8 million in savings. This could give you several parcels of land. The challenge with humans is that we want to own a small cake alone and that is not the right option. If you are able to get into the right vehicles that allow you to own a slice of a big cake, sometimes the slice is actually bigger than the small cake you wanted to own. When you form Chama’s establish structures, have a laid out strategy of where you want to go. Only then will you realise value in the long term.
Play your cards right, look for beneficial relationships by aligning yourself with the right minded people. Avoid negative energy, engaging with the wrong groups or people is never a positive thing. Avoid people who lack focus and are easily distracted by cheap politics.
Finally engage with experts, there is nothing like little money when thinking about investment. If you cannot take care of that one shilling then you will never grow and be able to invest. Young investors can also utilise payment plans. “This is where “Leverage,” one of the key benefits of investing in real estate comes in. You can invest in real estate by paying just a margin of the purchase price to secure the property and follow through with installment payments until completion. In as much as you are still purchasing the property, when the value appreciates, the benefits accrue on the total value of the property and you stand to benefit as so long as you honour your obligations of the purchase to completion. Unlike some investment options for example stocks and fixed deposits where you have to amass the full amount in cash and any benefits accrued will be pegged to what you hold as per the monies invested.
For example, Enkavilla Properties Ltd offers a flexible payment plan for the purchase of our properties with extended payment periods of up to 36 months. What is required is an initial deposit of 10% of the purchase price to secure the property. If you have Ksh. 65,000 to invest, you can buy a 1/8th fully serviced plot worth 650,000 at Enka Gardens Konza and repay the balance for 36 monthly instalments of less than Ksh. 20,000. There are quite a number of developments going on within and around the project hence significantly contributing towards the value appreciation of the land. Assuming you had the Ksh.65,000 to invest, Real Estate would work best in terms of your ROI (Return on Investment), If your stocks go up in value by 5%, you have made Ksh. 3,250. But if your property goes up by 5% you’ve made Ksh. 32,500. This is on the same Ksh.65,000 initial investment. Bear in mind also the rate of returns based on industry standards. Real estate has a much higher rate of return and this does not even take into account the other ways you can make money from real estate. That is why here at Enkavilla, We love real estate.