Moses Muriithi, CEO of Fanaka Real Estate, highlights essential considerations for first-time land purchasers in Nairobi, where navigating property transactions requires careful planning and due diligence.
Budgeting Wisely ¶
Buyers must assess their financial capacity and determine whether to pay in cash or installments. Muriithi notes that while some opt for lump-sum purchases, his company offers flexible payment plans requiring only a deposit. He warns that saving for a single transaction risks property value increases, advising buyers to prioritize affordability without financial strain.
Location Matters ¶
Choosing the right area is crucial, as location impacts price, security, and infrastructure. Muriithi emphasizes the importance of access to roads, utilities, and communication networks, stating, "Some places you can buy land and you can’t get someone to sell to." He recommends targeting cosmopolitan areas that attract buyers and ensure long-term value appreciation.
Verifying Sellers ¶
Buyers should prioritize registered real estate companies over individual sellers, according to Muriithi. He explains that companies provide infrastructure like roads and utilities, while individual transactions carry higher fraud risks. "It is easy to do your due diligence on a company than it is on an individual," he says, stressing the importance of verifying a seller’s track record through past clients and local networks.
