Tips for First-Time Home Buyers in Kenya

 Buying your first home in Kenya

So you're finally ready for that home you've always dreamed of having. You have your finances in order, you did your searching and after what felt like an eternity, you have finally zeroed in on a house that finally feels like home. But are you fully prepared to take the plunge and make that downpayment? Read on.

Buying a home is probably going to be the biggest purchase of your life. Our advice is to take your time. Double up on all your research and let that decision sink in naturally, after careful considerations on all fronts.

Here are some tips for first-time homebuyers in Kenya:

Trusting sellers in a hurry.

It is easy to put your trust in a seller who claims to have bills to settle and wants to sell off in a hurry. But this is often the biggest red flag to look out for. Sellers in a hurry could just as easily be trying to scam you into buying a house that doesn't have all of its paperwork in order. The result? You may be in for a long wait, while legal proceedings drag on. Or worse.

Relying on a home loan that defaults last minute.

Home loans are a very big deal. Just because you have a pre-approved home loan, doesn't guarantee a sanction. Imagine having everything in order and you're about to start paying for a home for which you already laid down a hefty deposit. And the next thing you know, you don't have a home loan to follow through and your deposit is now gone! Make sure you meet all your lender's requirements to be fully sure of having a home loan to rely on.

Not inspecting enough before buying.

Homes are living, breathing things. Some age well, most don't. If the house you just bought presents unexpected horrors, you could be in for a costly repair. Look for critical problems like leaking water lines, crumbling driveways, cracks in the walls and roofs, termites, rotting wood and sunken flooring. Trust your instincts when you find anything off with a house and don't be hesitant to inspect further if required. Remember - this is the biggest purchase of your life. Take your time and consult experts wherever required.

Not agreeing on what you're actually paying for.

When you buy a pre-used home, don't be shy to discuss what exactly do you get to keep. Some sellers leave most furnishings behind while others may take everything with them, even light bulbs! Little things like curtain rods, toilet seats, fans, taps, pipes, hoses etc are just as important as the bigger picture and can easily add up to an unseen expense if the previous home-owner decides to take everything with them. When agreeing on a price you are about to pay, list down exactly what you are paying for, including these overlooked items. You don't want to move into a home with missing water taps on the first day!

Neglecting the monthly cost of maintaining a pre-used home.

Buying a house may be a very big deal, but it is only the beginning. Homes require upkeep and monthly maintenance expenses. Before hurrying into a house that seems like a very good deal, take some time to find out what it would take to maintain it on a month-on-month basis. Having to service a home loan along with heavy monthly expenses can be a very difficult situation.

There's a saying in the home-buying business. If someone else doesn't want it anymore, make sure it has everything you need before you start wanting it. Buying a new affordable home is often a wiser choice than buying a used home that looks like a great deal. If you're on the market for a house that you can afford in Kenya, look no further than MiVida Garden City Apartment on Thika Road in Nairobi. These homes are designed to address the shortage of middle-income housing that families can afford.

MiVida promises innovative design, modern engineering, trusted construction, on-time delivery and an impeccable record, and is created through a joint venture between Actis, a leading growth markets investor who has been active in the region for over 70 years and Shapoorji Pallonji Real Estate (SPRE), the real estate arm of one of India’s largest conglomerates.

How To Choose Between Ready-To-Move-In Flats vs. Under-Construction Flats

Owning a home and finding the right choice is an important life step for any individual. It is important for homebuyers to be cautious about this crucial financial decision. There are plenty of 

Real estate options to choose from with the most common ones being flats in residential projects that are currently under construction or flats that are ready to move into within already built projects. Both of these options serve different purposes for homebuyers which means that we must look at all the pros and cons of both options to make an informed decision.

Pros of Properties That Are Ready To Move In 

• With these projects, you will have a better understanding of what your home will finally look like because they are either already complete to live in or just require some furnishing. You can inspect the home thoroughly before you buy it and get a prior understanding of the facilities of the flat.

• If you find a ready-to-move-in home that matches your budget, there is little to no financial risk involved once you make the payment. The only additional payments required will be the EMIs of your home loan while you can also challenge tax exemption on your home loan.

• The most notable benefit of this type of property is that you can instantly begin living in your new home without the need for any waiting period.

• These flats can also be bought as immediate investments where you can find tenants to receive regular rental income which can then be utilized to make your EMI payments.

Cons of Properties That Are Ready To Move In 

• Although you can see the final result in these homes, it is not possible to inspect the quality of the construction and strength of materials used to build the homes.

• A majority of ready-to-move-in properties are also those that have been constructed in the past which means it may not be a brand new home. It included properties that have been used by prior tenants.

• Another drawback of these homes is that they can be of a higher cost than under-construction properties with a cost difference of 20-30%. However, for major cities like Mumbai, there are affordable options in suburbs like the high-quality yet reasonably priced ready-to-move-in flats of Joyville Virar. This Shapoorji Pallonji project offers 1 BHK and 2 BHK homes in Virar West starting at ₹38.25 lakh and ₹51.25 lakh respectively along with a variety of top-class amenities.

Pros of Properties That Are Under Construction 

• These properties are likely to cost less than ready-to-move-in flats which increases the options of homes within the buyer’s budget.

• Once the construction is completed, the cost of this same property will increase which makes it a good return on investment for the existing owners. The best returns also depend on factors such as location, upcoming infrastructure, and employment hubs.

• Buying these homes also includes more flexibility of payment since the buyer doesn’t have to make the entire lump sum payment in one go.

• Under-construction flats also tend to come with additional features and discounts to attract more buyers. Also, with RERA in place, developers must deliver the promised details to homeowners.

Cons of Properties That Are Under Construction

• The major issue related to these projects is that they are subject to delay due to various reasons. When this happens, the buyer may have to bear the consequences of the builder’s increasing the cost of construction. In many cases, the project can be delayed for over 3-5 years.

• Having a reliable builder is very important when buying under-construction homes. False promises and unrealistic sample flats will become a liability for the homebuyer in the future. However, the likelihood of this major con has been reduced after implementation of RERA which ensures that the builder has to deliver what he has promised during the agreement.

 

With all of these pros and cons in mind, homebuyers can choose the right options that fit their needs, budget, and risk ability.