Homeowners in Kirinyaga County whose children have left the nest are turning the empty rooms into money-making ventures as they capitalise on a shift in travellers’ accommodation preferences. “From our market research, we realised that many travellers now prefer to stay in small units instead of hotels,” says Peter Irungu, one such homeowner who has invested in the business. However, unlike elsewhere in the country where homestay investors employ individual strategies, in Kirinyaga they have partnered with the tourism players to ensure that high customer standards are met. “During the past devolution conference (2019), one thing was evident: there was an acute shortage of bed capacity to accommodate the over 35,000 guests we had received from the 47 counties,” says Lee Daniel, the Mt Kenya Tourism Association coordinator. The homeowners saw the low bed capacity as an opportunity to earn passive income and ran away with it. “We saw a gap in the market in terms of providing a homely environment where people could come in, unwind, relax, and sleep while on transit,” adds Mr Irungu who owns Mambo Sagana Comfort. Bob Waiganjo, the CEO and founder of Majibu Getaway says, “we embraced the homestay concept after realising that we…

There are many benefits to owning land. First, owning land can produce excellent returns. Generally, the land is considered a long-term asset that is tangible, usable, and of limited supply. Because of land being in limited supply, long-term trends have shown that land will continue to appreciate over time. Location is important, but the price is more important. Land is the most underestimated real estate investment option and sometimes even considered pointless. Unlike other investments such as stocks and commodities, there is always a demand for land. Some of the advantages of land ownership include cash returns on sale, lease income, and added assets, and potentially increased borrowing power. The rule of thumb to make the land a valuable purchase is purchasing the right piece of land at the right price. Vacant Land Requires Minimum Work As a landowner, you need not worry about maintenance and repairs. Why have to worry about things like leaking roofs, painting, HVAC, or other normal costs associated with other real estate. With virtually no maintenance costs and generally very low taxes, you can hold for the property indefinitely as an asset. Profits with a Buy and Hold Strategy In today’s electronic environment it is…

If you’re thinking about investing in real estate, you’re about to embark on one of the best investment journeys of your lifetime. Residential rentals offer benefits you won’t find with other types of investments. These benefits include: Cash Flow Unlike other investment vehicles, real estate investing enables you to generate cash flow every month by your tenants paying rent. You can then use this money to pay off your mortgage, if you used financing to purchase your investment. Once the mortgage is paid off, the full cash amount goes directly into your pocket. If you used cash to buy your investment outright, you can use the monthly cash produced by your investment right away to fulfill your financial goals, create another stream of revenue, or re-invest it to build a powerful portfolio of multiple income-generating properties. Wealth Accumulation When you use leverage to purchase an investment property, you are essentially using “other people’s money” to build your wealth. Additionally, you don’t need to have a large initial investment than if you pay in full cash, only around 20% for the down payment in comparison to the full price of the home if you pay in full cash. As the home…

Understanding the basics of negotiating, dealing with problematic situations, and finding an appropriate solution for everyone involved is the best way to keep problems at bay. Below are some simple steps for dealing with landlord-tenant confrontation that both you and your property manager can use. Listen to Understand, Not Just Respond De-Escalate with Purpose Go in With a Resolution in Mind Acknowledge Mistakes Follow Through Listen to Understand, Not Just Respond Typically, conflict occurs due to one party having unmet expectations or the feeling of not being heard. Therefore, leading to frustration and anger, especially when it involves their rental home. For instance, perhaps a tenant feels their maintenance concern fell on deaf ears; maybe there is a discrepancy over billing or even a disagreement over who is responsible for a broken appliance. That said, helping a tenant or fixing the situation requires a complete understanding of what their complaint truly is. So, remain calm and hear them out. Remember to ask questions if you need clarity but never interrupt or devalue the tenant’s feelings. De-Escalate with Purpose Regardless of what the situation is, meeting anger with anger serves no one. Instead, remain calm and listen to what the person…

The National Housing Corporation (NHC) is seeking Sh7 billion from private investors to help fund, build and transfer 3,500 low-cost houses in Athi River, Machakos County. NHC acting managing director Patrick Bucha said the deal under a Public Private Partnership model will see the corporation collect rent and pay the private financiers within a period of between 15 to 20 years. This will allow investors to recoup their capital over the period after which the lease will terminate and ownership revert to NHC. The corporation says the participation of private investors in housing development projects will result in faster project implementation and will inform off-plan purchases from their customers. “We are looking for Sh7 billion through IFC under the Public Private Partnership model. Under this deal, the investor coming in through IFC will be able to finance, develop and transfer the houses to us so that he can get back his money,” Mr Bucha said in an interview on Thursday. The houses are part of the 10,500 units at Stoni Athi Waterfront City set to be developed on a 150-acre piece of land. They are composed of one, two, and three-bedroom unit houses that come with social amenities such as…

While it’s often assumed that everyone has a fundamental understanding of personal finance, there is a growing need for financial education. Ushering younger generations into a stable financial future is one of the best things you can do for them Instead of making smart financial decisions that pave the road to a comfortable life and retirement, many people end up spending their adult lives climbing out of the financial hole they created when they were younger; fortunately, there’s a way to avoid this. Investing in financial education will lead to wise real estate decision making, financial success and freedom. If you’re working with millennials who are looking to invest, offer them the following advice: Have at least three months of income saved before investing in property or the stock market. This will prevent extreme financial hardship should job loss, an accident, or some other unforeseen mishap occur. A high yield savings account or a money market account is a great place to save a down payment; traditional savings accounts will grow funds, but just barely Buying versus renting Housing is the largest single expense for most people. While buying a home can cost a pretty penny, renting might cost your…

Successful investors have some common traits. Following their traits increases your chances of being successful when you are new in the industry. Successful real estate investors undergo several stages in order to gain/maintain their success in the industry. Simply being successful in real estate investments is not an overnight adventure but a combination of many traits possessed by investors in that industry. By starting a real estate investment is not enough to gain success. It is a process and a series of growth that every investor goes through before fully understanding the business/ gaining from the investment. There are different ways in which one can grow and accumulate wealth in real estate industry. Looking at traits of fellow investors in real estate industry, it is not hard to make money and improve financial situation.It is easier to learn from fellow investors by following the examples for what they did to succeed instead of going through trial and errors. There is always a room to improve regardless of how long you have been in business. Here are some of the traits that most successful real investors have in common; Know Your Limits When you are starting out, it is important to…