Buyers Beware: 6 Hidden Pitfall of Off-plan Property Investment in Kenya
Despite the lure of off-plan property investment in Kenya, many buyers have faced potential financial losses and legal challenges.
Clare Ochieng
Did you know that 1 in 5 off-plan property buyers in Kenya experience significant delays in completing their projects?
Despite the lure of off-plan property investment in Kenya, many buyers have faced potential financial losses and legal challenges. Many may ask what are the risks associated with buying property off-plan in Kenya. Worry less; we got you covered. The following are some of the risks associated with buying property off-plan:
1. Market Flactuation
Every single day, changes occur in the market; therefore, the property bought may be of no value, as many planned buyers will prefer to buy something new that is recent.
2. Legal Issues
The legal document, the title deed, may not be properly drawn, which may lead to disputes over ownership and rights to the property sold.
3. Construction delays
The completion of a project may be delayed, resulting in increased costs or a loss of potential rental income.
4. Liquidity issues
Selling the property before it is completed may be difficult or impossible, limiting your ability to exit the investment if needed.
5. Financial loss
The contractor may fail to complete the construction, leaving you with property that is worth less than the amount you paid for.
6. Unworthy property
The construction may not meet the promised standard or specifications, resulting in defects or other problems with the property.
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