Initially, property development was rudimentary and straightforward, just focusing on the basic amenities, and enough space for parking or gardening. However, times have changed. We have a whole different generation that is tech-savvy, has unique tastes and know exactly what they want. They are considering these factors when hunting for property to purchase or rent: Within the city/convenience Gone are the days people used to invest in property located in the outskirts of a city. Millenials prefer to live in hip neighbourhoods in the city; posh and upcoming developments that are near service providers and entertainment joints for convenience. Buying vs Renting Real estate experts will testify that numerous rational millennials are keen on building or buying their first homes instead of renting. They are specific about what they want and don’t want, with a huge bias on specific trends in their homes; luxury, efficiency, and technology. Technology In fact, technology is the key determining factor for a young person to or not to invest in a property. This generation spends most of their time online; shopping, chatting, researching, and working using home Wi-Fi. This is why internet connectivity in homes is a major selling point. Network reception for cellular…

When you’re unhappy with certain aspects of your home, you may find yourself contemplating whether to buy new or renovate your existing space. There are pros and cons to both options, so let’s dig in. The benefit of renovating and staying put Renovating can be a hassle — but so can moving, and perhaps even more so. When you buy a new house, you’re signing up to pack up your existing home and move to a new one. And there are consequences to doing so. For one thing, living in a new neighborhood can be less convenient — you don’t know your way around, the stores aren’t the same, and the adjustment is potentially lengthy. Moving also means giving up the neighbors you like and the school district your children are enrolled in. That’s a big deal. Another good reason to renovate? You’ll have a home that caters to your specific needs. Say you’re unhappy with your outdated kitchen and want a new one. You could find a home with a brand new kitchen, but you may not love the color of the cabinetry. When you stay in your home and renovate, you call the shots with regard to improvements….

Buying or renting a home – which is best? It’s an age-old debate, but one that really comes down to individual needs and circumstances. To help you make the decision, we’ve explored the pros and cons of buying and renting and outlined everything you’ll need to consider. Whether it’s better for you to buy or rent will depend on your personal and financial circumstances. If you’re not able to afford a home of your own, renting is a great way to live in the area you like and in a property that suits you. However, owning a property can give you more security for later in life and enables you to put down roots and create a real ‘home’. Renting a home The advantages of renting Renting a property gives you more flexibility to move quickly Renting a property can be arranged quicker than buying a home Renting carries a lower financial risk than buying By renting, you won’t have to worry about maintenance or repairs By renting, you may be able to live in an area where you couldn’t afford to buy The disadvantages of renting By renting, you’re paying off your landlord’s mortgage rather than your own It’s…

Does a property owner have absolute power over the process of eviction? Property law has come a long way in addressing this. The law imposes restrictions to evictions. In this article, we shall look at different scenarios in which eviction is necessitated and how to legally evict a Tenant or an unlawful settler. There are different types of eviction in Kenya. In this piece, we shall cover evictions in the following areas: – Eviction of a Tenant at a residential unit; Eviction of a Tenant from business premises protected under Cap 301; and Eviction of unlawful/illegal settlers. Eviction of a Tenant at a residential unit: – The law has placed a few safeguards in respect of situations where a landlord in a residential unit intends to evict his tenant. These are those units where rent is paid periodically, for instance, monthly or quarterly in advance. The procedure to be followed majorly depends on how parties agreed in the first place. There is, however, a bare minimum, you cannot rightfully evict anyone without a Court order. The requirement of a termination notice There are landlord and tenant relationships whose agreements are not provided for in writing, oral agreements. They, therefore, do…

What is Capital Gains Tax (CGT)? CGT is tax that is levied on transfer of property situated in Kenya, acquired on or before January 2015. It is declared and paid by the transferor of the property Rate of Tax The rate of tax is 5% of the net gain.It is a final tax i.e. the Capital Gain is not subject to further taxation after payment of the 5% rate of tax.Net Gain is Sales Proceeds minus the Acquisition and Incidental costCGT is on gains arising from sale of property. How to Compute Capital Gains Tax Net Gain = (Transfer value – Incidental Costs on Transfer) – Adjusted Cost ( Acquisition Cost + Incidental Costs on Acquisition + Any enhancement Cost) What constitutes a transfer? If property is sold, exchanged, conveyed or otherwise disposed of in any manner (including by way of gift), whether or not for consideration; On the occasion of the loss, destruction or extinction of property whether or not a sum by way of compensation is received in respect of the loss, destruction or extinction unless that sum is utilized to reinstate the property in essentially the same form and in the same place within one year or…

Rent means payments received from a right granted to another person for use or occupation of immovable property which includes premium or similar consideration received for the use or occupation of property. Rental Income Taxation Under Annual Regime Rent is charged on actual amount received Expense incurred to generate rent is allowed under section 15 of the Income Tax Act. Tax is calculated under individual graduated scale or corporate rate of 30% In addition, rent on non-residential buildings (Commercial) is taxable under the VAT Act(No. 35 of 2013) – Laws of Kenya. How to determine Taxable Income Gross Rent income for the year: Property A – 5 units*Kshs. 20,000*12months 1,200,000 Property B – 10 units*Kshs. 15,000*12months 1,800,000 Total Rent income in Kshs. 3,000,000 Less: Allowable expenses (Kshs.): Land Rent/Rates …

Land grabbing is a chronic, malignant and deeply rooted problem and sadly a familiar tale to every Kenyan. Fraudsters are increasingly falsifying documents while conniving with civil servants to secure title deeds, robbing Kenyans of their precious land, damaging businesses and fuelling investor hesitancy. The problem stems from the unshakeable composition of these criminal networks. Historical cases have seen the involvement of individuals that hold sway on various rungs of our political, legal and regulatory framework. Indeed, incidents have included employees inside ministries, high-ranking political officials, and police officers. Land cartels are sophisticated, protected criminal structures built on such foundations that have become increasingly difficult to break down. Their actions are organised and robust. For example, land grabbers often claim they bought land from a deceased individual before their death, using forged ownership and sale agreements ratified by power-wielding cartel members. Police are then deployed to physically commandeer the land. At the same time, the cartels higher ranking individuals threaten, blackmail and cajole the rightful owners into deterring them from chasing justice. As a result, many individuals and businesses find themselves too scared or unable to fund the legal battle ahead of them. This pattern of events resonates with several…