As an alternative, it provides someone else the chance to construct something on your property. A common fallacy about buying land is that it doesn’t produce any income, won’t increase in value, and that’s generally undesirable. Landowners contend that these are major misconceptions. Purchasing land has a lot of monetary and administrative advantages.
Here are some of the reasons why one should buy land as an investment option in Kenya:
1. Land is Scarce
One of the benefits of owning land is that you will have an access to a scarce or limited investment. Land is a limited resource for us. Every year that goes by, the amount of uninhabited land decreases due to global population growth.
2. Options and Flexibility
There is a wide range of uses for land that may be found to match almost anyone’s goals and demands. According to your financial goals and capacity, you might theoretically rent, sell, or even develop the land.
a) Residential and commercial structures: Renting out the land and permitting a house to be built will give you a consistent income and raise the value of the land because of the house put on it. Another alternative is to sell the land for more money after a few years to investors in commercial or residential properties.
b) Farming and livestock: A lot of landowners who own their estate in rural or suburban locations have the appealing option of renting it out for farming for a number of years. This accomplishes two key objectives.
3. No Competition
You can never find two pieces of land exactly the same because they differ in size, location, and even shape. In contrast, property owners face stiff competition in their market and must work hard to survive. It will be simpler for you to acquire land if you don’t have to compete with other buyers in a bidding process.
4. No Depreciation
Another factor that makes land a fantastic real estate investment plan is the absence of any depreciationvalue. Land cannot depreciate since it cannot be transported, destroyed, or adversely altered under any conditions, natural or unnatural. In the worst case, an investor can only rely on appreciation when making a land investment.
5. Limited Management Required
Land requires little upkeep or attention, whereas properties demand a lot of effort and time. The most crucial need for lucrative land purchases is that the property be appropriate for construction.
The land is an excellent way for investors to get passive income from Real Estate if they are too busy to deal with tenants, upkeep, and management difficulties.
6. Cheaper Expenses
Lastly, is owning land significantly more expensive? The least expensive Real Estate investment is vacant property since you avoid utilities, pay fewer taxes, and take out fewer mortgages because you bought vacant land.
The ideal real estate investment strategy for those who are not suited for the demanding job of managing residential real estate holdings is land.
So if you’re trying to add a fresh investing dimension to your portfolio, then land ownership is the way to go.
Here at Nyota Njema Real Estate Ltd, our properties are dispersed around the nation with various beautiful views like the beautiful view of Mt. Kenya in Nanyuki plots, Diani plots, Juja farm plots, Joska plots, Kitengela plots, Nakuru plots, Isinya plots, Kamiti plots, Malindi lands, and Maasai Mara plots.
Call Nyota Njema Real Estate Ltd at +254728694916 for further details. Visit our office, which is open from 8 am to 5 pm, at Nyota Njema Real Estate Ltd offices located at the Mountain Mall second floor, Suit C21, Thika Road, or email us at firstname.lastname@example.org.