Best Real Estate Investments Options in Kenya

When most people think about real estate investing, they likely think about a few things for example slumlords in cities or even a rich billionaire. However, an average investor should also seriously consider investing in real estate. Real estate can be exciting and also lucrative. There are tons of options when it comes to real estate investing, and the following are the best real estate investments options in Kenya;

Student housing development of student accommodation proves to be a big thing in real estate. It is a powerful asset if developed. Demand for student housing is often high, especially at the start of every school year, when most students are looking for a place to stay. It guarantees a steady flow of income due to the increase in demand for student housing. Many students prefer to stay off-campus giving you the chance to make huge profits. It, therefore, provides a sense of financial stability. When built near high populated colleges or universities, there is no doubt that investors will receive regular income. Besides renting your apartments to students, you can also rent them to other people, maybe travelers on holidays when most of these student apartments are vacant. However, student housing can be of a disadvantage when there are reckless students where you as a landlord will have to make constant repairs and maintenance.

Warehousing and factory development

An increase in manufacturing will increase demand for warehouses. However, there is a chronic shortage of good warehouses, following the slow investment in the industrial sector. Long lease warehousing is one of the most attractive real estate investment opportunities in Kenya. Thus setting up more warehouses and industries would be a great real estate investment yielding a lot of profit.

Buy land and build a rental property

Building property is a property investment avenue in Kenya. It is one of the most common ways to make consistent money in real estate. Building schools, colleges, hospitals, or apartments is a profitable investment. It requires a lot of expertise and investments. It offers higher returns when reselling or to let in the future. Owning rental properties is an excellent way to invest in real estate while building wealth and generating income. The potential return is strong. There is a guaranteed monthly income as long as you find tenants. 

Invest in RIET

These are specialized companies that own, operate, manage, or derive their income from real estate assets. Land developers and home builders are two ways to invest in real estate through the stock market. REITs are a solid investment for stock market investors who desire regular income. They afford investors entry into non-residential investments for example malls or office buildings.

Participate in a real estate crowdfunding opportunity

The idea behind crowdfunding is that an experienced real estate developer identifies an investment opportunity, but instead of funding the entire project with their own money and bank finances, the developers raise some of the necessary capital from investors in exchange for an equity interest in the project. The return potential is usually huge. It is however difficult or impossible to get out of a crowdfunded real estate investment before it is complete.

Buy vacation rental

This is different, compared to a long term rental property. It can be on a nightly or weekly basis. One can also use the home when vacant. It brings more income per day than the along-term rental property. It is temporary accommodation for tourists as an alternative to a hotel. Holding onto your rental property for the long term is a great investment strategy. Most people would choose vacation rentals over hotels because they provide more privacy. Guests have more space and the average cost per night is much lower compared to hotels. The advantages vacation rentals have over hotels is a clear indication for guests to prefer their stay there thus, it generates a lot of money from such.

Fix and flip a house

This is buying a house for the purpose o making repairs then quickly selling it for a profit. It takes between 4 to 6 months to complete a flip from purchase to the sale of the property. The faster you can buy and sell and fill property, the better off you are going to be, and the higher the rate of return you will experience. Much in house flipping depends on the real estate market which is cyclical. During a boom, flippers have the upper hand and can almost name their price in some areas but during the slow period, many of these fixed-up homes can sit on the markets for months.

Be a lender

Instead of being a stakeholder in a project, you become one of its financers. You can make more money from a debt investment than from an equity investment. Instead of an investor making interest payments to a bank, they make payments to you. You have a higher claim to the assets of an investment project. When a crowdfunded investment goes sour, debt investors get their money back before equity investors and besides that, debt investors are at a lower risk in nature in case something goes wrong in the investments.