Acquiring a property stands as one of the most significant financial decisions one can undertake in a lifetime. Equally, understanding the types of property investment involved is key to making the right choice. We comprehend the gravity of this step and strive to ensure a seamless and satisfying experience from start to finish. Here are some insightful guidelines to set you on the right path:
1.Understanding Your Purpose
It's essential to define the primary purpose of the property: whether it's for investment or personal use. In cases where your intention involves a mix of both, like residing in the property for a few years before renting it out, considering it as an investment for the long term is prudent. The reverse scenario holds true as well.
2.Financial Evaluation
Determining affordability, significantly influences the property's location and type based on your financial constraints, especially for property investment for beginners. Avail yourself of an affordable mortgage with a fixed interest rate ranging from 9% to 9.9% per annum, specifically tailored for first-time home buyers. The monthly repayments are structured to align closely with prevailing market rents.
3.Payment Options
Identify a payment plan that suits your circumstances. Typically, there are three payment plans available, subject to the developer's terms:
Installments during construction period: Involves a cash payment plan, requiring a minimum 20% deposit, with the remaining balance structured in installments throughout the construction period, averaging around 24 months.Affordable mortgages: Offered by selected financiers at fixed interest rates ranging from 9% to 9.9% per annum, available to all first-time home buyers for up to 25 years. Civil servants may access employer-based financing at a significantly reduced interest rate of 3% per annum.5-Year Payment Plan: Requires a minimum 10% deposit, with the balance payable in equal monthly installments during and after the construction period. As each phase of the development concludes, occupants move in and continue payments for the remainder of the term. This plan suits large-scale developments with phased construction (phase 1, 2 & 3) spread over a 5-year period.
Partnering with ensures professional guidance to determine the most suitable option for your situation.
4. Strategic Planning
Practically initiating the process involves assessing your deposit amount. If it falls short, we recommend:
Initiating a targeted 12-month savings plan through a money market fund or a SACCO.Exploring alternative income sources (side hustles).Embracing frugality by prioritizing spending on essential aspects.Ready to Proceed?
Congratulations on reaching this significant milestone! At this juncture, your purpose is defined, along with other specifics like the preferred number of bedrooms and location. With your budget and deposit secured, the next step involves reaching out to us. Our team of real estate agents will assist in narrowing down the best options, arrange site visits, and commence formal engagement.
