Last Updated on 19/07/2019 by Steve Wanjie
Plots on sale…are a familiar site in many countries and especially in Kenya. In Kenya there is obsession with residential plots ownership.
Unfortunately, making a land buying mistake is common, but avoidable. You shouldn’t be losing hard earned money to land conmen.
In fact, with a little bit of research and knowledge you can avoid mistakes. If you know what to watch out for, you’ll be more confident and satisfied with your ability to buy land.
Here are some mistakes to avoid buying residential plots:
1. Buying residential plots that doesn’t suit your needs
It takes inner thought. A good checklist and attention to detail to be sure you know what you’re looking for.
A real estate agent can help you determine what type of house you might prefer, but don’t leave it up to them. You are the only one who knows what type of land is going to fit your family’s needs.
2. Creating new debt while in escrow
When you apply for a land or home loan, your lender calculates how much debt you are already carrying. Can you afford new debt according to your income and debt ratio.
Don’t go out to lease a new car. Your debt ratio percentage will rise. High debt ratio will prevent you from buying a plot in a higher price range, or completely.
If you are already in escrow, you may have done all your land hunting for nothing. Don’t make any major purchases while you’re trying to buy a piece of land.
If possible, save and buy land with your own cash. This is cheaper. Its stress free and it makes you feel good about yourself.
3. Paying more than you can afford
Because you qualify for a certain amount doesn’t mean you have to buy land at that price. Always fight to buy at a lower price.
You can save the extra money. Save to afford a vacation, dine out more, or go shopping. Buying a residential plot is the first step to home ownership. You still have to build a house.
Don’t spend so much on land that you’re miserable because you are unable to build new home.
4. Buying land in bad location
It is vital to research the area you will be living in. You can take a day to visit and look up the area. Check out the environment. Find out what the crime rate is, or call the local police station and ask for information.
Talk to some of the people and see how they feel about living there. What they say will give you a big clue whether you should buy the plot, or forget putting in an offer altogether.
5. Not buying when prices are low
Nothing is better than low land prices, except all cash. Most people don’t know this. Low land prices can save you thousands. Low land prices are as good. If you pass up buying when it’s most affordable, you’ll regret it later.
6. Buying land in installments bad idea
Pay cash and take possession immediately. Paying in installments is the easiest way to lose your money and the property. This opens the door to the seller to sell to other parties the same land.
7. Take custody of all documents
Do not pay if the documents related to the said land aren’t available. Exchange cash for genuine land documents.
8. Have your own witness
It’s always important to have witnesses to back you up.
9. The title deed is very important
Buy land that has Title Deed ready. If there is no Title at least you can get it within three months after buying. There must be a clear way on how the title deed will be obtainable.
I can help you buy a residential plot at Kantafu or Malaa on Kangundo road. The land there is of low cost and you will safe with me. Most buyers are from the middle class.
Some plots have title deed while those without you process within 2 months. The price is between 800,000 and One million Kenya Shillings. Price depends on proximity to tarmac. Frontline plots touch Kangundo road. Residential plot for sale.