What is a first mortgage? understand in some scenarios, a piece of real estate may be financed by multiple mortgage loans. When this is the case, the original loan is then called the “first mortgage” or “first lien.” The new loan or subsequent loan is called the “secondmortgage,” “second lien,” or “subordinate loan.” The first mortgage is considered the primary loan on the property, and in the event you default on your mortgages, it has the first right to claim the home and cash it in as repayment. Important A first mortgage doesnotrefer to a mortgage on the first home a buyer has purchased. Why Would You Have More Than One Mortgage? There are several situations in which you might have multiple mortgage loans on a single property. These can occur either up-front, when you’re initially purchasing the home or down the line after you’ve been in the home for some time. Let’s look at both scenarios: Scenario 1: Buying Your Home Some buyers use two mortgage loans to purchase their property. The first is used to cover the bulk of the purchase price of the home, minus a down payment. Then, the second loan helps cover that down payment…

Westlands, situated in the heart of Nairobi, has emerged as the preferred location for discerning individuals seeking a vibrant and contemporary lifestyle. This bustling urban hub, known for its dynamic atmosphere, luxurious amenities, and convenient accessibility, has become a sought-after destination for both residents and businesses alike. Discover the Allure and Vibrancy of Nairobi’s Bustling Urban Hub As the city continues to evolve, Westlands has undergone a remarkable transformation, evolving into a cosmopolitan neighborhood that caters to a wide range of tastes and preferences. With its blend of modern architecture, commercial centers, upscale residences, and an array of entertainment options, Westlands offers a unique combination of convenience, style, and liveliness. One of the key attractions of Westlands is its unparalleled connectivity. The neighborhood boasts excellent transport links, including major roads, highways, and public transportation networks, making it easily accessible from various parts of Nairobi. Additionally, its proximity to the Central Business District and other major commercial areas ensures that residents have quick and convenient access to employment opportunities, business centers, and essential services. Beyond residential offerings, Westlands boasts an impressive selection of high-end restaurants, trendy cafes, and stylish bars. The neighborhood is renowned for its vibrant nightlife, with a myriad…

Do you own an office building but don’t want to worry about the day-to-day management of your property? The benefits of using a property management company almost always outweigh the cost.  Having a team to handle the rent collection, maintenance, upgrades, and more will ultimately save you time and money. 1. A Property Management Company Can Help You Reach Your Financial Goals Handling the financial management of your property can be a large undertaking. A property management company can help take this off your plate. AccountingProperty managers provide an assortment of financial statements helping you gain insight into the building’s performance. These statements are vital to future planning for your property and reaching your goals for your property. A property manager provides several monthly financial statements including:-Variance analysis-General ledger-Income statement-Balance sheet-Rent rolls-Aged delinquencies-Statement of cash flows (operating activities, investing activities, financing activities)-Bank reconciliation statement-Cash reserves summary Budgeting Budgeting and forecasting are important, especially when it comes to unexpected costs and repairs.A property manager will estimate the income and expenses of the property and establish a budget to help you reach the goals you have for your property. Financial reports can be customized depending on your goals and needs. An executive summary…

When it comes to property, capital appreciation is when the value of a property has grown over time. House prices can go up and down depending on factors such as property market performance. When an investor is able to sell their property for less than they initially paid for it, this means they’ve made capital growth returns. Capital Appreciation can be defined as either the increase of an investment’s value or an increase in the price or value of assets. Compared to other industries, real estate is unique given the intrinsic capital appreciation it provides to homeowners. A purchased house will be worth more in the future. This is due to the scarcity of land and the increase in housing demand as the population grows over time. However, not all real estate is created equal with certain real estate appreciating at a faster pace compared to others. This is primarily due to the location of the property and its high-end nature. Today, we will take a look at why certain properties are priced higher than others and how this is reflected in capital appreciation. Location A modern 4 bedroom all ensuite villa located in Runda that is available to let…

Over the years an emerging trend in Kenyan real estate has been the increase in the number of apartment units over standalone housing. One major factor contributing to this is rural-to-urban migration which means an influx in the numbers within the major cities and a demand for residential spaces. This has necessitated the maximization of space. An aerial view of the Nairobi City | pc: Google Apartment complexes over villas and standalone units A lot of these apartment complexes also come in handy in the consolidation of the amenities that can be used by the tenants in the developments which results in saving on costs as compared to what may have alternatively been spent if each tenant had to cater to the costs of the amenities individually. It is also much more environmentally conscious as developers look at using more sustainable energy sources such as solar water heating and environmentally friendly materials in their construction. For investors, apartment units make a lot of economic sense as they could choose to let them out for short-term stays or long-term stays. The average market return on investment rate for such units is between 6-8 % and it could go up to an…

Understanding the value of a property is critical in real estate. Property valuation gives you an accurate estimate of your property’s value, which can have a significant impact on many aspects of your financial life.In this post, we will look at the advantages of property valuation and explain why it is so important for homeowners, investors, and anyone else involved in the real estate market. Setting the Right Asking Price: Setting the right asking price is critical if you plan to sell your property. Overpricing can turn off potential buyers, while underpricing means you’re losing money. Property valuation helps in achieving the best possible balance. A professional valuer can assist you in determining a competitive asking price that attracts buyers and ensures a fair return on your investment by taking market trends and comparable sales into account. Determining Market Value: The most significant advantage of property valuation is that it helps with assessing the market value of your property. Knowing the true value of your property is critical whether you intend to sell, refinance, or make strategic financial decisions. In order to provide an accurate assessment, valuation professionals consider factors such as location, size, condition, amenities, and recent sales of…