When it comes to choosing the best investment vehicle to keep your financial future secured, the choices can be overwhelming, with many people stuck between starting a business, investing in shares, or venturing into farming.
While all the choices have their risks and rewards, land investment remains one of the best options given its appreciating value and minimal risks.
The rising population has pushed the demand for land high as people look for places to settle away from the hustle and bustle of the city.
The rise in land value has also been helped by the rapid urbanization in Kenya as cities expand and infrastructure projects take shape.
Statistics indicate that land in Nairobi and its metropolitan areas has appreciated by an average of 10-15 percent per year over the last decade, higher than most traditional investment returns.
According to the Nairobi Metropolitan Area Land Report, land in Kenya appreciates at an average of 10 percent per year, with some areas experiencing even higher rates.
Some of the areas that have in recent years experienced a high growth rate in land value are Ngong, Konza Technopolis, Matuu, and Nakuru, due to the ongoing expansions and infrastructure projects.
Land in areas like Matuu, one of the fastest growing towns in Machakos County, is going for as low as Sh250,000 for a 1/8 acre plot, with the price set to skyrocket in the future when infrastructure completely takes shape.
Besides rising value over the years, land investment is also one of the stress-free investments, as no continuous management is required. The only charges that apply are the annual land rates, which are affordable.
Additionally, with land, you can use your title deed as collateral to secure loans for other ventures.
CFAO Mobility Kenya clarifies the acquisition and restructuring of DT Dobie
Interestingly, unlike many investments, such as stocks that require a lot of liquid money, owning a plot is achievable even with irregular income.
According to the Kenya Economic Survey, 83 percent of Kenyan workers are in the informal sector, relying on irregular incomes. This is a clear indication that not everyone can save and buy a plot.
As such, many companies have come up with flexible payment plans to enable Kenyans to own plots even with irregular income.
NCBA is one of the financiers that has earned consumers’ trust, with its affordable and flexible payment plans for Kenyans seeking to invest in land.
The bank is offering financing of up to 70 percent of the plot value for plots in Nairobi, Mombasa, and other major urban and rural areas within major towns.
The repayment period is flexible with tenors ranging from 36 to 60 months. The minimum loan amount is Sh500,000, with facility fees of 1 percent of the loan value for local clients, and 2 percent for diaspora clients.
Whether you are looking to purchase land for investment or construction, partnering with NCBA can be a great move.
NCBA Home Loans
Besides land financing, NCBA is also offering home loans for aspiring homeowners in major urban and rural areas within major towns.
Whether you are looking to construct or purchase a house, NCBA will offer financing tailored to meet all your needs with a flexible repayment period. Some of the available financing options are:
Home Purchase Loan: This mortgage facility offers financing of up to 105 percent of the value of the property.
It targets individuals seeking to acquire, construct, or finance property in major urban and rural areas within major towns. The loan’s terms are friendly, with a repayment period of up to 25 years.
NCBA deepens affluent customer engagement through a “Meet, Mingle & Money Talks” series
Michael Njeru, a homeowner in Joska in Machakos County, is one of the beneficiaries of this product. Despite not having enough funds to finance the construction of his modern 3-bedroom house, Njeru’s dream became a reality after approaching NCBA with the plan.
“I had a good plan and strategy, and I think that’s how I made it to build the house. I did not have much money then, but I trusted God that everything would be okay. So, in February 2022, I approached NCBA with the plan to build a house, and they offered me Sh3 million funding,” he says.
NCBA Easy Build: This property financing solution gives customers full access to building plans and professional services. NCBA provides you with approved experts to build your house, guaranteeing quality.
These experts comprise Architects, Quantity surveyors, Structural, Mechanical, and Electrical engineers, who will supervise the construction process end-to-end. Under this facility, NCBA also has pre-approved house designs to select from.
Equity Release: Would you like to unlock the value of your property with financing against an existing mortgage or on a property as collateral?
This product provides financing of up to 90 percent of the property’s value on single and investment residential units, and up to 80 percent of property value for residential multiple dwellings and investment commercial property.
Borrowers enjoy a repayment period of up to 5 years for loans of Sh100,000 to Sh2 million and up to 25 years for loans above Sh2 million.
