4 Questions To Ask Yourself Before Buying a House in Kenya

4 Questions To Ask Yourself Before Buying a House in Kenya

Are you excited about buying a house in Kenya? Well, it’ll be costly if you make mistakes as a first-time house buyer. The process is fascinating, and at the same time, it is an emotionally daunting task. As a potential house buyer, it is important to know the process beforehand. This will help you make a sound decision. 

 

As a house buyer in Kenya having the right information will help you make the right purchasing decisions; furthermore, it will save your time and money. Below are some of the things you should ask yourself before buying a house in Kenya: 

Why Do I Want to Buy a House?

Most likely, the decision to buy a house can be as a result of advice from family, friends, and those in your circle. Mind you, this is a major decision on your part.

 

However, it is also good to have reservations.

 

It will be wise to double-check yourself before settling on the idea of buying a house in Kenya. 

 

Some of the valid reasons why you may want to buy a house in Kenya include;

• The pride of owning a house
• The value of the house will appreciate with time 
• Property tax deductions will be less
• Capital gains
• Interest deduction on your mortgage 
• Build up of Equity through mortgage reduction
• Equity loans, etc.

As a first-time house buyer, ensure that you’re ready for the responsibilities that come with owning a house. 

 

The best thing, however, about buying a house is the fact that its benefits are many. 

What is My Budget?

The most important thing when you want to buy a house in Kenya is to know your budget. 

 

Once you know your budget, you’ll be able to determine the type of house you can afford. 

 

You should be able to set aside a certain amount as a downpayment. 

 

And, as a potential house buyer, you must be in a position to know exactly how much you spend in a month. This will help you to calculate the amount of money that should be set aside as a downpayment. 

 

Your budget should include money to pay for the following services:

• Title Search: the process has been digitized. At only Ksh. 500, you can easily search for the owner of the house you intend to buy through the online platform eCitizen.

• Stamp Duty: this amount can be 2-4% of the value of the house you intend to buy, paid to the Ministry of Lands through KRA. The percentage charged depends on the location of the house. 

• Mortgage Fees: each bank has its charges. The charges range from 12-14%. 1% of the loan amount is charged as a loan processing fee, and 0.5% as a valuation fee.

• Legal Fees: the amount ranges from 1-2% of the value of the house you intend to buy and an additional amount of a minimum of Kshs. 35,000.

• House Insurance: every house insurance service provider has its charges depending on the package.

1. Additional Costs: these include; 
   • House inspection costs
   • Repairs
   • Utility costs
   • Maintenance costs, etc.

How Secure Is the Location of the House?

When buying a house in Kenya, one thing that’s often overlooked is the security of the place where you intend to buy the house. 

 

As a first-time house buyer, you are vulnerable to security risks. 

 

You can easily change everything else – in and around your house, but it’s security. 

 

So, it is important to be mindful of the following before making that purchase; 

• Inspect the Location: check out if there is active community policing in the area. The streets should be well lit and no signs of vandalism. Find where the nearest Police post/station is. Find out more information about the crime rate in the area from local authorities. 

• Know who your neighbors are: establish a rapport with your neighbors. Be in a good relationship with the people around you. Be part of the community and know your surroundings.

• Audit the Security of the house and limit the access points: thoroughly check out all the entry points of the house and seal and, or reduce entry points. 

• Install a house security system: prevent your house from being attacked by thugs by installing a security system. 

• Be familiar with the local Emergency services: you should know local authorities who can be of help during an emergency. 

What is the Condition of The House?

As a potential house buyer in Kenya, you have qualities that you’re looking for in a house. 

 

You do not want to buy a house that was built a decade ago. Therefore, knowing hiring the house has been in existence, will help you make a decision. 

 

However appealing an old house is, as a house buyer, you should be ready to incur maintenance, repairs, and upgrading costs. 

 

It is quite important to do a thorough inspection of the house, to ascertain whether it is in good condition before making the purchase.

 

Finally, whenever you’re ready to buy a house in Kenya, keep in mind the most important things before making the purchase. Ask yourself why you want to buy a house. If you have valid reasons, then go ahead. But know your budget, how secure the location is, and in what condition that house is.