Upon realization of success in the area of employment or entrepreneurship, most of the people will start slooking for a proper investment for their profits. Most of investors will shy off the idea of investing in real estate for lack of understanding the benefits linked to it. Consequently, real estate investment has suffered under the cold feet of prospective investors especially in Nairobi.
Real estate is the mother of all long term investment deals which keep on appreciating at the favor of the investor. For instance a plot measuring 50ft by 100ft in 2002 could cost a Kangundo Road resident about Ksh.35,000 only, according to The Standard ,14 years late the same plot will surprisingly cost a whooping Ksh.700,000 today in 2016. A 1900% growth within 14 years! This therefore makes investment principle of rule 72 futile – the rule states that it takes 7 years for the value of investment at a fixed rate of 10% to double. Going by that rule, the same plot mentioned above would fairly cost about Ksh.140,000 in 2016.
Another golden tip on why you should not think twice in real estate investment, is that you don’t need to be rich to join the real estate investment bigwigs. What most investors lose out on tapping a fortune is because they think the money they have is too inconsequential to get them into the real estate business. There are various financing options available to investors with an undying interest in the real estate, which are ranging from bank loans to mortgages and micro-finance savings packages. Just make sure the income or appreciation value of your property surpasses the interest on the loan to avoid putting your fingers on flames.