- GOOD BOOK-KEEPING WILL SAVE YOU A FORTUNE
Mr Cheboror points out that many small-scale constructors do not appreciate the value of accounting for every shilling spent while constructing.
They thus end up getting duped by unscrupulous foremen and contractors, so building a house ends up feeling like pouring money into a bottomless pit.
He advises that investors get into the habit of keeping all the financial records pertaining to the construction.
This, he explains, is useful in determining the amount of rent to be charged, or the price of the building, were it to be put up for sale.
Keeping records can also save you money when the time comes to file your tax returns with the Kenya Revenue Authority (KRA). The financial records put you in a good position to enjoy tax exemptions.
- DO NOT FALL IN LOVE WITH THE PROPERTY
When buying property for resale, you are better off checking your emotions at the door. “There are buildings put up for sale that are over-designed and over-decorated.
These buildings have great curb-appeal, that is, they look appealing at a glance. People tend to fall in love with such buildings and hence end up paying inflated prices, only for them to get shocked when they
later cannot sell the building at a profit,” Mr Kibire says.
“We always advise our clients that real estate is not a sentimental business. One should always be on the lookout for profits and not let the visual appeal of a property cloud their judgment,” he adds.
However, when buying your own home, you can go ahead and fork top dollar for a property with great curb appeal.
- AVOID THE PATH OF LEAST RESISTANCE
The temptation to cut corners to save some money will certainly arise at some point. The agents agree that taking shortcuts is rarely ever worth it; if anything, it usually results in the loss of entire investments,
and sometimes even lives. Going by the book might seem expensive, but it saves you a lot of mental agony and is actually cheaper.
“Hire only contractors accredited and licensed by the National Construction Authority,” advises Mr Kibire.
“Take note of the national construction regulations and county by-laws to avoid the possibility of your property being demolished in future.
Conduct surveys to avoid encroaching on public land, and use only genuine materials while constructing. I have seen entire buildings being marked as unfit just because the owners did not see the need to
conduct the necessary inspections at the foundation stage.”
When it comes to contracting services such as borehole digging and hiring heavy machinery, deal only with reputable companies to avoid getting into trouble with the KRA.