Buying land is one of the best vehicles of investment, especially here in Kenya. If you pay attention while driving on the Thika Superhighway, you will notice many billboards advertising land and property. I am even sure that you, yes, you, are aching to buy land as soon as you get the money.
However, buying land is not like buying potatoes. (Please forgive me for the blunt choice of words.). But in a country where most of us look to secure our future by purchasing property, I think it is careless how some of us are buying land. In this segment, I am going to take you through the deeps and shallows of everything you need to know. Additionally, I will outline the questions you should consider before spending a single shilling on that ‘kashamba.’
Here are the five W’s that you should consider when buying land
1. Why buy land?
The question aims at getting your attention. This is one of the most important questions that you will need to answer before going ahead to buy. From a personal point of view, please ask yourself, why do you need to buy that piece of land? This will simplify other things like the location and the type of land you buy, as it provides a motive for your action.
Some of the reasons that people buy land are
- For investment reasons
- For price speculation and capital gains
- For business purposes
- For children inheritance
- To do farming
Answering the ‘why’ question also prevents you from buying without a plan. Remember that land is an investment choice, like stocks & MMFs. Therefore, without a plan, you may experience future buyer’s remorse.
2. Where am I buying?
Once you answer the question of why, you need to ask yourself, where are you buying the land? This is all about the location. For instance, if you want to buy land for agricultural production, then there are some areas, such as Kamakis and Karen, that you can’t consider buying. This is because most of these areas are used for residential purposes.
Another important reason involves avoiding getting duped. As a nation, it is clear that we have an ethics deficit in most industries. Dubious ‘con persons’ advertise land lots in area A but end up selling you land in area B. This is common with land buyers from the diaspora who might not be present for site visits.
The infamous Malindi plots, sold at 50,000, serve as a prime example. Marketers misled countless individuals into believing they were purchasing beachfront plots. Only for them to find their parcels in very remote and inaccessible areas of Malindi.
Still on the same question of where, I think it beats all logic to go buy a piece of land that is over 500 km from where you live. The maintenance cost alone will surpass the initial value. And to top it all off, you may end up not utilizing the piece of land.
3. What type of land am I buying?
Another important factor to consider is the type of land that you are buying. What you intend to do with the plot will guide the type of land you buy. If you want to purchase land for agricultural use, you may consider buying land in areas that are zoned for agriculture.
Each and every piece of land in Kenya is zoned for specific use. This is according to the planning agencies involved. By understanding the land use of your intended property, you are more likely to make a wise purchasing decision.
Moreover, it might save you on something called “change of use.” Which is a fee paid to alter the initial zoning of the land.
More on that: follow the link to the article.
4. Who am I buying land from?
Once you are done with the why, where, and what of land buying, you should also ask about who you are buying the land from. This now focuses on the seller, who is the landowner (a company or an individual).
We are all too familiar with massive land fraud cases that have befallen some Kenyans. At this point countless people have lost millions to rogue and imposter land dealers. This is why you need to get the WHO question right. Your answer may determine whether you get to enjoy the fruits of your labor or spend the next 10-plus years in a court battle with some crook.
It is very simple: DON’T buy land from persons or companies that have had a history of unresolved cases. Chances are you might be the next victim. Also look for directors of previous firms that have conned people in the past and have now rebranded themselves.
For more information on red flags to check when buying land, click this link.
I also strongly suggest that you primarily purchase land with title deeds, but I will provide more information on this later.
5. When am I buying land?
Lastly, you want to answer the question of when you are buying land. This is about timing, and real estate, like all other markets, has its ups and downs. For instance, if the economic situation is uncertain. Such as a new government coming into power. Unfavorable government policies, such as high taxes, may lead you to consider postponing your decision.
If you buy at a good economic time, it makes the process much easier. And should you want to dispose of the land, you are sure that you will find buyers very easily. The vice versa is also very true, and you risk getting your cash stagnated in the mix.
