Do Due Diligence If You Want To Own A Home

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.”

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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.