This archive report was first published on 29 August 2019.
On August 29, 2019, Dr. Pesa offered valuable insights to a 29-year-old woman named Nelly, who was contemplating buying her first home.
Nelly, a steady-income earner, had saved a significant amount of money in both a bank and a SACCO. However, she was unsure about the process of homeownership and the associated costs.
Dr. Pesa began by highlighting the benefits of homeownership, including the freedom to customize one's home and the potential for building equity. He also emphasized the importance of educating oneself and being prepared to purchase a home that fits one's needs and income.
According to Dr. Pesa, the most popular home financing method in Kenya is through personal income and/or savings, with SACCOs leading in savings mobilization for their members. However, mortgages and home loans are relatively low in use due to their perceived expense.
Interestingly, Dr. Pesa noted that the aversion to mortgages is not due to limited awareness but rather the perception that this funding option is expensive and ties individuals to long-term relationships with financiers.
Ultimately, Dr. Pesa encouraged Nelly to consider whether purchasing a home is the right choice for her and to weigh the advantages and disadvantages of renting versus buying.
