Do Due Diligence If You Want To Own A Home

By Juma / Published July 9, 2021 | 7:11 am




KEY POINTS

Kenya has an annual housing demand of 250,000 units with an estimated supply of 50,000 units, culminating in a housing deficit of 2 million units, or an 80 percent deficit.


Nairobi

Kenya has an annual housing demand of 250,000 units with an estimated supply of 50,000 units, culminating in a housing deficit of 2 million units, or an 80 percent deficit. This means that each year, there are 50,000 Kenyans looking for a home.

Housing affordability is a key challenge in Kenya with many people unable to afford to buy or build their own homes. Many are of the view that owning a home in Kenya is a reserve of the few who have deep pockets. This emanates from the high prices.

Read More: Owning A Home In Kenya: What Are The Challenges?

To help more Kenyans have access to homeownership, the government of Kenya kicked off the affordable housing project with the aim of constructing at least 500,000 houses by the year 2022. But as time melts, not even a third of the work has been done.

It is obvious that delivering 500,000 affordable housing units by the year 2022 by the government is a tall order. But the great concern is whether common Kenyans are able to afford the same “affordable houses.” The answer is NO. They ate still expensive.

The journey to owning a home is not an easy one. It needs sacrifices in terms of work and raiding into one’s savings in order to have one. It is not something one can just wake up and decide to have unless he or she has won a lottery.

Read More: 32.0% Of Kenyans More Likely To Move From Their Current Homes Due To Covid-19

A study done by Knight Frank indicated that more than a third of prospective homebuyers are looking for low-cost houses mainly as a result of the tough economic environment brought about by the COVID-19 pandemic which has led to a shift to affordable housing options.

To help Kenyans understand the journey of owning a home in Kenya, Absa Bank Kenya hosted their first Twitter Space with experts from the mortgage industry, real estate, and media that unpacked the challenges people face while hunting for a home.

According to media personality Janet Mbugua, owning a home is not a walk in the park. She says she bought her first piece of land at the age of 23 but had to dig deeper into her savings. Currently, she co-owns a home with her siblings as she looks to venture into her own.

“It is not easy. There are so many things that one has to sacrifice,” she said adding that she was shaped into investing in property by her father who started guiding her towards that direction at an early age. “My dream to own my own home will be actualized soon.”

Read More: Working From Home: How Covid-19 Has Changed “Work”

According to Esther Omulele, the Managing Partner at MMC Asafo, many homebuyers in Kenya fail to carry out due diligence before investing in a property. Many have ended up losing millions of money to frauds or buying something they did not want.

“You have to see what you are buying. Do not just rely on adverts. The reality might be different. Personally visit the location and confirm. Know where the seller is. Visit their office or carry out a search to see the faces behind the company,” she said.

Joan Kariuki, Head of Loans at Absa Bank Kenya, there is a need for Kenyan prospective homebuyers to identify a good bank for them to finance their homebuying. She said Absa Bank has a home loan product that can help Kenyans who want to own a home.

Those who take a mortgage product from Absa get to enjoy a reduced interest rate of as low as 12.5% p.a within industry rates. They also have an extended loan repayment period of up to 25 years.

Absa Bank also gives financing up to 90 percent, Non-financial benefits come from our mortgage team who guide customers throughout the mortgage and homeownership journey among others.

The bank signed a financing partnership with Mi Vida Homes where customers will enjoy a discounted rate of 12.5% p.a with up to 90 percent financing. It also introduced a 25-year mortgage facility targeting middle-income families seeking affordable homes within Nairobi.

Read More: Absa To Offer Mortgage Customers 25 Years Of Repayment After Deal With Mi Vida

The session was moderated by Lucy Kagia, Digital Campaigns Manager at Absa Bank Kenya.




About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

View other posts by Juma


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2024
  • January 2024 (238)
  • February 2024 (227)
  • March 2024 (190)
  • April 2024 (51)
  • 2023
  • January 2023 (182)
  • February 2023 (203)
  • March 2023 (322)
  • April 2023 (298)
  • May 2023 (268)
  • June 2023 (214)
  • July 2023 (212)
  • August 2023 (257)
  • September 2023 (237)
  • October 2023 (266)
  • November 2023 (284)
  • December 2023 (176)
  • 2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (358)
  • April 2022 (292)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (232)
  • December 2022 (167)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (272)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950