Q: My name is Samuel Ndegwa. I earn Sh. 30,000 every month. Is this amount enough to allow me to buy a plot?
A: Land is often perceived as the ultimate safe investment that keeps appreciating and rarely loses value. In Kenya, high land prices have served as a lucrative source of income for strategic investors but as a source of despair for many young, particularly those at entry level at work or low-income earners.
Many Kenyans are concerned that the high cost of land may block them from ever settling in their own property. At a young age, priorities of many individuals are elsewhere such as buying a car, getting married or simply being careless with money spending decisions.
It is however important to ensure, from an early age, that a person gets quality life through making long-term investments. “But what if I do not make enough money to even consider buying property?” is a question that many Kenyans ask. Buying land has for a long time been seen as a preserve of the well to do, but it is quite achievable even with a Sh. 30,000 salary.
I am a security guard in Nairobi. This is how I survive on Sh. 18,000 salary
1). The first step should be to set aside at least 10% – 20% of the salary in savings.
2). Join a Sacco and start saving. After about six months, you will be eligible to get three to four times the amount you have saved. This is capital you can then use to buy your plot at low interest rate. In addition, some Saccos can allow a person to use the land they are buying as collateral. This also works as a safe bet because of the due diligence the lender will have to carry out.
3). Land in urban areas can be highly priced due to demand. It is therefore wise to consider satellite towns such as Thika, Ruiru, Juja, Machakos and areas near the fast growing Nakuru town among others. This way, it becomes easier for you to secure a good investment without necessarily having to spend a lot of money. For instance, with only Sh. 299,000 you can get an 1/8 acre plot that is being sold by Lesedi Developers in one of the fastest growing areas of Nakuru.
4). Consider long payment periods. Long-term payments will allow a low-income earner to make low deposits monthly without a lot of pressure. For instance, Lesedi Developers which is selling the Nakuru plots, has a repayment program dubbed Lesedi Club for Land (LCL) where you will only need to deposit Sh. 120, 000 within three months, then make monthly deposits of only Sh. 10,000 for a period of 36 months at 0% interest rate. Through this program, you can also start developing the land before completing the whole repayment.