Investing in real estate in Kenya can be a profitable venture with careful consideration of the rights factor. It has long been regarded as a time-tested and dependable strategy that rarely leads to regret.

Whether you are a seasoned investor or a newcomer to the world of financial planning, the allure of land investment is undeniable. In this article, we will delve into the advantages and elucidate why you can never go wrong with land investments, making them a cornerstone of a well-rounded investment portfolio.

An appreciating asset

Land investing is a wise strategic move that investors make to diversify their portfolios. Land has the potential for appreciation. As time goes by, land appreciates. This makes it provide a secure future for one who invests in it. Land investment can provide income-generating opportunities, such as renting out the land for farming. Regardless of the economic situation, the value of the land increases.

Affordable

Investing in land is more affordable compared to other real estate assets. The maintenance cost of land is lower, so it does not require utility bills, mortgages, roof repairs, or replacements. While land may undergo natural erosion, it generates less maintenance than buildings that are subject to wear and tear. This makes it less costly compared to other real estate assets.

The owner of the land does not necessarily have to pay insurance for the land, compared to a person buying a house. This makes it affordable. Due to its affordability, everyone who has the capability and the potential to invest in land can do so regardless of age and status.  Land being affordable to acquire makes it a good investment.

Generates passive income

Land investments create passive income. Owning land is a valuable investment, and there are many ways one can generate income from it beyond selling it. Whether you have a small plot of land or a large piece of land, there are opportunities to make money on your land investment. Land can be used for agricultural or animal farming. Other opportunities for making money from the land can be beekeeping, leasing the land and allowing a cell phone tower to be installed on your land, and renting it out to the cellular provider.

Limited in supply and increased demand

With the continual expansion of population and ongoing infrastructure developments in the country, the demand for land has increased because people need to find a place to settle. The demand enhances the potential of the resale value. The limited supply intensifies competition in the market, which leads to higher price points. With land, there is much that can be done around it, hence its high demand.

Stable asset

Land has a history of stable growth, making it a reliable long-term investment choice. Land cannot disappear or lose its value all of a sudden. This gives investors the confidence to invest in it. Land is a fixed asset with high demand, hence the scarcity.

Can be passed on to future generation

When you invest in land, you can pass it on to future generations. This will help to create a legacy by passing down valuable land to your loved ones. You will be certain that they will have a reliable future. Land can be passed on to future generations through inheritance, where the owner will specify in their will who they want to inherit the land. Setting up a trust can be a more flexible option. You can establish a land trust, which allows you to appoint a trustee to manage the land and distribute the benefits to beneficiaries according to your terms. This makes land a long-term investment.

Conclusion

Investing in land can be a very lucrative and stable long-term financial decision. Land offers intrinsic value and limited supply, making it a tangible asset that appreciates over time.

However, it is essential to conduct thorough research and consider location, market conditions, and potential risks before investing in land. It is very important to conduct due diligence before investing in land to ensure it aligns with your financial goals and risk tolerance. Like any other investment, success depends on making well-informed decisions.

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