Hey there future landowners! My name is Maurine from Zenawi Real Estate, and today I want to talk to you about one of the most convenient ways to buy land in Kenya Through asset financing. Now, I know what you’re thinking, “ugh, finance, boring!” But don’t worry, I’m here to make it fun, hilarious, and simple to understand, so buckle up and let’s dive in!
First things first,
What is financing?
Financing is simply asking a financial institution, like a bank, Sacco, or Chama, to buy an asset, like land, on your behalf with a promise to pay them back in the future.
Why choose asset financing over other options?
- You might not have enough cash right now to buy that perfect piece of land you’ve been dreaming of.
- Financial institutions usually have better terms and conditions compared to vendors.
How does the process of bank financing work?
- The vendor and purchaser agree on the terms of purchase, and the vendor’s advocates draft an agreement.
- The purchaser takes the agreement to a financial institution and requests financing.
- The institution checks the purchaser’s bank statements to determine their buying power(credit score).
- If the above checks out, the institution sends a valuer to determine the value of the asset.
- The purchaser pays a small deposit as a sign of commitment.
- The institution’s advocates take over the process and start transferring the documents to the purchaser’s name.
- The institution releases the funds to the vendor, and voila! The process is complete.
But,
What are the advantages and disadvantages of financing?
Let me break it down for you:
Advantages:
- You can acquire any asset without waiting for your business or career to generate enough capital.
- Financial institutions usually have better terms and conditions compared to land-selling companies.
- You have full control of the asset as you are repaying, meaning you can use the revenue generated through the same asset to pay back the loan.
- No other collateral is required; the asset being financed serves as security for the bank.
Disadvantages:
- You’ll have to pay for the valuers and lawyers, which can add up.
Now, I know what you’re thinking, “Maurine, this all sounds great, now that I can afford it, where can I find some prime and legit plots to buy in Kenya?”
Well, fear not! Zenawi Real Estate has got you covered with prime plots in Juja Farm with ready title deeds. And the best part? We allow you to purchase through bank financing. So, what are you waiting for? Contact Zenawi Real Estate today to book a free site visit and start living your land-owning dreams!
Remember, with the right tips and knowledge, buying land is a pretty simple and fun process.
Keep an eye out for our next blog on more investment opportunities. And always remember, Zenawi Real Estate is here to make your land-buying dreams come true!