As a foreign investor, you have many good reasons for buying an investment in Kenya. Firstly, the opportunity for rental income and price appreciation. Though there\u2019s no guarantee, the long-term outlook has generally been positive for any property investor.<\/p>\n\n\n\n
For foreign nationals buying an investment in Kenya, the process isn\u2019t easy. Moreover, smart investors get help from real estate brokers, mortgage experts, and homebuilders. When you buy a property directly from a builder, you\u2019re dealing with a professional seller rather than an individual homeowner, who may have an emotional attachment to the property.<\/p>\n\n\n\n
“An investment doesn\u2019t have to be an emotional process.<\/em>“<\/p>\n\n\n\n The best way of buying an investment in Kenya is to visit builders\u2019 sales offices and tour their model homes. A model home is a newly built home with all the bells and whistles that the builder has set up to show the home at its best.<\/p>\n\n\n\n The model is complete and decorated with furniture, landscaping, and all the upgrades to sell the other properties.<\/p>\n\n\n\n The model is an example of the homes that the builder sells, but it\u2019s usually not the actual home you\u2019ll buy unless you specifically purchase a model. Instead, you\u2019ll likely buy a base home and choose which upgrades you\u2019d like included in it for an additional price.<\/p>\n\n\n\n If you\u2019re unable to visit Kenya and shop for an investment home in person, you can choose to buy a home sight-unseen. The builder\u2019s sales representative or a realtor can help you tour homes remotely with a video-calling app.<\/p>\n\n\n\n Additionally, some builders offer immersive 360 tours. These tours allow you to walk through a home virtually as if you were there, even if the home hasn\u2019t been built yet.<\/p>\n\n\n\n Some builders sell brand-new homes that are already completed. These homes are called \u201cstanding inventory\u201d and they\u2019re ready for you to buy with upgrades the builder has selected. If you want to buy a newly built home without waiting for it to be constructed, standing inventory may be a good choice for you.<\/p>\n\n\n\n If you choose to pay cash for your investment home and closing costs, you won\u2019t need a mortgage to buy a home in Kenya. You will, however, need to show the builder that the cash is in the country or that you can transfer it quickly.<\/p>\n\n\n\n If you want to finance part of your purchase price, you\u2019ll need to get a loan from a bank, mortgage company, or other lenders. Ask the lender what types of documents you need. Many banks require a KRA pin, Kenyan credit history, and\/or other financial information.<\/p>\n\n\n\n The [international buyer] you may need to provide documentation from your own country as to your income and assets, along with letters of reference from their banking institutions.<\/p>\n\n\n\n Most lenders also require international investors to make a substantial downpayment to obtain a home mortgage in Kenya.<\/p>\n\n\n\n International investors should know two things about signing a purchase contract to buy a home from a Kenyan. builder.<\/p>\n\n\n\n First, once the contract signed, the negotiation is over.<\/p>\n\n\n\n In some countries, they sign the agreement, then start negotiating. In the Kenya., when a contract is signed, that is the end of the negotiation.<\/p>\n\n\n\n Second, a deposit is required. Usually, it\u2019s 30 to 50% of the purchase price. Once the contract contingencies are satisfied, the deposit isn\u2019t refundable, even in extraordinary circumstances.<\/p>\n\n\n\n Once you remove all the contingencies, the deposit \u2018goes hard\u2019 and you no longer can get it back. If you don\u2019t abide by the terms of the agreement or don\u2019t move forward as planned, the deposit is forfeited.<\/p>\n\n\n\n When the deal is ready to close, you\u2019ll have to sign some documents. Most can be signed electronically, so you won\u2019t have to be in the country for those. Some will require a physical pen-and-ink signature. <\/p>\n\n\n\n If you can\u2019t visit Kenya. to sign these documents in person, you\u2019ll have to authorize someone else to sign them for you. To do that, you\u2019ll have to sign a legal form giving someone you trust permission to sign on your behalf. The form is called a Power of Attorney (POA). Your builder, lender or title company should be able to provide a POA form for you to use.<\/p>\n\n\n\n First, you should know that if you\u2019re planning to rent out your investment home, some areas have rental restrictions. Some homeowner associations (HOAs) prohibit rentals until the owner has lived in the home for a certain length of time, such as two years. Some also limit or prohibit short-term rentals, such as Airbnb, or require that if you use such programs, you may only rent to long-term tenants.<\/p>\n\n\n\n The best way to manage Kenya property from outside of Kenya is to hire a property manager. A manager can find tenants, collect rents, handle maintenance and repairs, and help to safeguard your investment for you.<\/p>\n\n\n\n A property manager who speaks the owner\u2019s language is very important and can make ownership a pleasure.<\/p>\n\n\n\n Newly-built homes usually don\u2019t need many repairs, but if something breaks, your property manager can make sure it\u2019s repaired quickly. Your tenants will expect that, and it can help to protect your investment.<\/p>\n\n\n\n Let\u2019s say there\u2019s an emergency plumbing situation and you\u2019re [in a time zone] that\u2019s nine hours or 12 hours ahead. The tenant can\u2019t wait for you to wake up and schedule a repairman. A property management company can fix an issue in a couple of hours, which is much more reasonable.<\/p>\n\n\n\n Most builders provide a warranty that covers certain repairs to the home for a certain period, such as one year. Manufacturers\u2019 warranties usually cover new appliances inside the home for a period, too.<\/p>\n\n\n\n All homes require maintenance to keep them in good condition. Your property manager can arrange for tree trimming, snow removal or other services, and let you know the costs. The nicer the property looks, the higher rent and better tenants, you\u2019ll get.<\/p>\n\n\n\nShopping for Investment Property<\/strong><\/h5>\n\n\n\n
Financing an Investment Property<\/strong><\/h5>\n\n\n\n
Signing a Purchase Contract<\/strong><\/h5>\n\n\n\n
Managing Your Investment Property<\/strong><\/h5>\n\n\n\n