In Kenya, obtaining bank finance has never been simple, particularly when purchasing real estate. Kenyan banks have created financial solutions that most closely meet consumer needs.
Purchasing land is among the most advantageous investment choices available. Its worth increases first. Second, because it can be sold quickly, it has great liquidity. The majority of individuals already know why real estate investing is significant. The difficulty arises, though, when trying to raise money to buy land.
Obtaining the entire cash purchase price for a piece of property may be challenging for many. This is the reason having a financial plan is the first thing you should do when considering purchasing land.
1. Savings
Most institutions finance a percentage e.g. 80% of the total amount. This means that you need to have your 20% already. Start by saving money for your project in advance. Open a savings account such as ABC PureSavers account or if you are in the diaspora and would like to invest back home you can open an ABC Global Savings Account that will help you have the discipline of saving while still earning interest.
Having savings is not only for the project but also to build your credibility when the Bank checks your financial statements before advancing you a loan.
2. Credible seller
Most commercial banks will want to deal with incorporated companies or real estate dealers compared to individuals. This is because with individuals, it may be ancestral land allocated to several family members, may not have a title deed, has never been valued and other such things which make the purchase process complicated.
3. Due Diligence
The good thing about Bank financing is that they have to ensure due diligence is done before advancing you the loan. This is to ensure the credibility of the sale. Searches and valuations have to be done to check on the rightful owner and value before proceeding.
4. Insurance
When getting a loan from a bank it is important to get insurance for your asset and for yourself. This will ensure that you are protected in case you are unable to finance the loan. ABC Bank through their brokerage ABC Insurance Brokers offers ideal covers for such investments.
5. Value for your money
The beauty of land is that you can develop it, buy-hold-resell, lease it or even farm yourself and get returns from it. This will help with repaying your loan to the bank and give you value for your money.
Interested in creating a financial plan for investing in real estate? We at ABC bank offer bank financing for real estate and land properties .
Contact us via 0701 700 700 or [email protected] or visit our website www.abcthebank.com for more details.
