The pre-purchase of properties prior to their construction, commonly known as “buying
off-plan,” has gained prominence among Kenyan individuals seeking to acquire
residential homes or invest in the real estate sector. This practice entails paying for a
property at the design stage, commencing with an initial deposit and subsequent
installment payments throughout the construction phase, ultimately culminating in the
acquisition of the property.
While executed judiciously, the off-plan purchasing approach
can yield substantial returns. Nevertheless, it is imperative to remain cognizant of
potential pitfalls. To facilitate your journey in this realm, presented below are a set of
recommended actions and advised precautions for navigating the process.
DO’s:
Conduct Comprehensive Research:
In light of the significant financial outlay associated with real estate endeavors,
diligent research is paramount. Investigate both the developer and the proposed
development thoroughly.
Examine the historical performance of similar real
estate ventures within the locale earmarked for the new development. Assess
projected returns, construction timelines, and cost considerations. Research will
guide your crucial decision: Is this investment worthwhile?
Select Prime Locations:
In the realm of real estate, the concept of a “prime” location may vary among
individuals. It is essential to discern your preferences, whether inclined toward
the vibrancy of urban living or the serenity of rural landscapes.
Location stands as a pivotal factor. Discerning choices in this regard may yield long-term benefits.
Key considerations encompass proximity to infrastructure, growth prospects
within the area, and potential resale value.
Meticulous Planning:
When you commit to an off-plan purchase, meticulous planning is fundamental.
Organize your financial resources to cover the entire duration of the project.
Striking a balance between installment payments and other financial obligations
is vital.
Planning enables you to ascertain the feasibility of the project and
establish your intentions for the property, be it for rent, lease, or personal
residence. Such foresight facilitates timely utilization upon completion.
Professional Consultation:
An often-made error is the inclination to forego expert guidance to evade
consultation fees. While it may seem like a cost-saving measure, the absence of
consultations with diverse experts before project commitment can have dire
consequences.
Expert appraisals safeguard against undue overcharging by
developers. Seek counsel from an advocate who can elucidate the contract’s
intricacies before affixing your signature. Additionally, consult with other industry
professionals to ascertain the feasibility of the construction details promised by
your chosen developer.
Regular Inspection:
Maintain a consistent presence at the construction site to monitor the progress
of your prospective residence. Actively oversee the development process and
promptly address concerns with the developer as they arise.
Active engagement ensures that your property remains on course, while early issue identification
allows for timely resolution.
DONT’S
Exercise Prudence in Trust:
Within the Kenyan real estate landscape, numerous developers operate, and
regrettably, some lack authenticity. Distinguishing between unscrupulous entities
and honest companies can prove challenging.
During your research, refrain from
solely relying on a single source; instead, gather information from multiple,
reputable sources. Avoid placing unwavering trust in unverifiable claims;
skepticism is prudent.
Refrain from Signing Incomprehensible Contracts:
Contracts carry the weight of legal obligation. Once you commit your signature,
you are bound by the terms therein. Even amid the excitement of acquiring a new
property, it is paramount to exercise caution.
Scrutinize the finer details contained within the contract. Engage the services of an independent legal
professional to scrutinize the document, elucidate any ambiguous provisions,
and facilitate potential amendments. Safeguard certified copies of all documents
signed.
Ensure Timely Payments:
The process of purchasing off-plan invariably entails an initial down payment
followed by subsequent installments. Depending on the agreement’s stipulations,
failing to meet one or more of these installments may have adverse financial
consequences.
Certain developers may not offer full refunds and may retain your
initial deposit. In other instances, the refund process might extend beyond your
expectations.
Non-payment, in any case, jeopardizes your aspiration of
possessing the desired property. Accordingly, meticulous financial planning is
indispensable to avert such circumstances.
In the dynamic world of investing in off-plan real estate, making informed decisions is paramount. At MilikiSpace, we’re not just a real estate provider; we’re your trusted partner in the journey of investing in pre-construction properties. Our team of experts extends beyond identifying prime opportunities; we also offer invaluable financial insights and top-tier legal support, ensuring your investment is secure. We’re here to help you navigate the intricate dos and don’ts, avoiding common mistakes while maximizing your future profits.
Let MilikiSpace guide you to profitable and mistake-free investments in off-plan real estate. Your financial success begins with us.
