Mortgages are becoming more elusive for many Kenyans especially in informal industry. Unstable interest rates and curtailing by banks have made mortgages very mystical.
Here are four easy way you can own your home without thinking of mortgage financing
1. Pay for your home in cash
You can own your home by either paying from your earnings or savings. Even though it’s probably not likely you have enough cash saved to buy a house outright, it is a way to get a house without a mortgage. You can consider negotiating for long term payment plans that can help you pay from your income(s). Compare the mortgage interest rate, rate of value increase in homes where you plan to buy, and the rate of return on stock market and mutual fund investments.
2. Rent to own
Rent to own is slowly catching up in the Kenya real estate market. The government in particular is actively engaging this form of financing in a bid to allow more and more people to own homes. You lease a house, and the lease payment is split. A portion of the payment goes toward an agreed-to down payment on the house. The other portion is the payment for living in the house. Consult a lawyer to review and explain the documents for a Rent-to-own situation. If you don’t make the purchase, you may forfeit the down payment. Another downside is that there may be a limited inventory of homes offered on a lease-to-own basis.
3. Buying to Sell (Flipping)
Although not so popular with Kenyans, house flipping is a sure way to own multiple homes and make a turn of money whilst flipping. House flipping is when real estate investors buy homes, usually at auction or distress sale, and then resell them at a profit months down the road after improving on it. Can you make money doing this? Yes. But you can also lose everything you own if you make a bad decision
4. Joint Venture
If you already own a piece then you are miles on track to owning your home. Find a willing investor who would finance buildings several units on your land and use your land as part payment for your home.
Author : Anold Mugo (Realtor & Marketer)
Published By GoldMut Group (www.goldmutgroup.co.ke)