Land buyers in Kenya should do their due diligence before committing to acquire property, at a time when fraud cases in the sector has risen.
Real estate expert Perminus Kariuki said many Kenyans do not follow the right process when acquiring property, which exposes them to unscrupulous people who take advantage of them.
“Many people take a lot of time to make money for the purpose of investing. However, when it is time to invest, they take little time to research and end up spending money blindly,” he said.
Kariuki is the CEO of real estate firm Nyota Njema.
The expert urged Kenyans to follow the right procedure of land acquisition, which includes doing a proper search of the land at the land ministry.
“Always verify and ensure that the title deed the seller is offering is legitimate.”
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When buying, Kariuki also asked buyers to ensure they are given an offer letter and a sales agreement.
Should these be unavailable, buyers could enlist the services of experts including lawyers who could draft such papers.
In case the property is being sold by an individual or family, buyers should find out from the local community about the land being sold.
“You will be surprised by the amount of information you could gather by asking around the neighbourhood.”
Taking credit
Kariuki said land buyers should not shy away from taking credit, especially if the land offers unique opportunities.
For instance, a buyer could consider taking a loan if they intend to build a residential home on the property in the future.
One could also consider taking a loan to buy land if they will build rental houses on the land, or if the buy has access to cheap loans.
However, he cautioned buyers using credit to be careful, as repaying money for a property that is not generating income could be difficult.
“The situation really varies, but if well calculated, you could thank yourself in years to come.”
Land location
The expert noted that location does not matter now as much as it used to, thanks to devolution. Kariuki said that devolution had made places that were previously inaccessible to become within reach.
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He also urged land buyers to do proper research on the potential of an area before making a purchase.
“Does the area have the right kind of infrastructure or are there any plans of developing the area? Is water within reach? Is the area known to be peaceful or is it prone to community clashes?”
However, Kariuki asked buyers to not make emotional decisions when buying land, and to not follow the crowd aimlessly.
Land as an investment
He also emphasized the importance of acquiring property, saying it is the only asset that does not depreciate.
“People who bought land in Kitengela six years ago are fetching a lot of money when they resell those properties.”
Kariuki spoke when the company handed over 200 title deeds to land buyers of the company’s Nanyuki Plots Project.
His sentiments come when the government is implementing the National Lands Information Management Systems (NLIMS).
The digitized system was launched in April 2021, to ease property registration and introduce transparency in land administration and management.
Lands Cabinet Secretary Farida Karoney recently said that the digitization of land records will eliminate land grabbing, which has become a persistent issue in Kenya.
