What to Consider Before Owning a Home in Kenya

As many Kenyans struggle with income concerns and economic uncertainty, the desire to possess a home has grown more urgent.

Ephraim Njenga quoted an article in the Daily Nation on how properties are auctioned off. According to the auctioneer, some homes are being sold at auction after 15 years of mortgage payments.

Such people, according to him, passed away soon after the ordeal.

“This is why we advise people to consider their options carefully before hopping on the bandwagon of property ownership,” Ephraim said.

In Kenya, income insecurity and economic ambiguity are the key causes of the country’s strong desire to buy a home.

Ephraim says people should consider the following factors before choosing to become homeowners:

1. Fraud risk: Kenya’s real estate market is rife with con artists. Whatever route you take to acquire a home, make cautious about reducing the danger of fraud.
2. Keep an open mind; having a place to live is the key benefit of home ownership. So, finding refuge is the goal.
3. Consider the expenditures. Owning a property comes with a lot of expenses; service fees are much more expensive than the rent one was trying to avoid.
4. Physical planning concerns – There aren’t many well-planned areas in Kenya most are surrounded by a huge sum which may be an unsafe hellhole.
5. Think about alternatives – You should think about investing in productive capital.
6. Think about rigidity vs. flexibility – It is good to think about whether you still need flexibility, for instance, to take up opportunities elsewhere.
7. Because of high-interest rates and economic uncertainties, owning a home through a mortgage is one of the riskiest decisions you can make. In the event of foreclosure, you risk losing a lot.
8. It is good to think about liquidity risks – It is possible to have a home but not have the cash to spend. In such a situation, home ownership wouldn’t give you the peace of mind you were looking for.

The need for families to own homes has been occasioned by the high cost of living, high inflation rate, and the need for families to secure shelter where they don’t pay rent every month. This, however, must be pursued with full knowledge and checks on the risks involved and the safest approaches while undertaking the processes and transactions.

Article by Agnes Aboo (@wifrida_Agnes)
Email: agnesaboo@upeohubdigital.co.ke