One of my best friends bought a house in Oloitoktok whereas the other one bought land in Nakuru CBD. The former bought his house sitting in a four-acre piece of land at a quarter the price of the latter.
The guy who bought land in the village got his house for less money as opposed to the guy who bought land in the leafy suburbs of Nakuru. My question is who among these two individuals is going to get better rewards from his property in 3 years to come?
Digger gives you four best considerations as a new home buyer to put into consideration before and when buying your first home.
Consider two scenarios here; one is a neighbourhood near to a town and the other one, far from the town.
In these two cases, the former is likely to be more expensive than the latter because of their locations. Secondly, land in rich neighbourhoods will cost more as opposed to mid-level or low-income neighbourhoods.
Also, the type of house styles in a certain area will determine if the price of the land is high or low.
The availability of public amenities such as hospitals, schools, water and roads in the area can determine whether the price of the land will go up or remain stagnant for a period of time. Availability of such local amenities will at most instances make the price of homes, as well as that of land in the area, go up.
Let us give you an example of Konza City project. A piece of land in this area is likely to cost you triple or double the price of land in East parts of Nairobi town.
As a new home buyer, you need to understand the possibility of land appreciating in the area in which you want to buy your home. You can simply do this by consulting with the people living in that area to get to know the land price trends in that area over time.
To be noted also includes the availability of public amenities such as hospitals, schools, water and roads in the area. This can determine whether the price of the land will go up or remain stagnant for a period of time.
These kinds of houses provide great returns to the buyer when land appreciates in that neighbourhood. Remember, land appreciates at a rate of 10 percent every year which means that the value of your house will have to go up by 10 percent every year.
Investing in such a house will, therefore, give the owner an added advantage since its price might even go up by double as time goes by.
Therefore, as a first home buyer, you should consider using demand and supply curves in obtaining a property that will be a blessing and not a curse to you.
Looking to buy a home soon? Check out digger classifieds property section here and pick a home in your ideal location as we have property listing from all over Kenya.