Insights
Challenge of converting Land into Income Generating Property in Kenya, and Solutions available to Real Estate Investors
YOUR CHALLENGE:
The need to own land property in Kenya is nearly immeasurable, with most Kenyans wanting to own a piece of property in their investment strategy. Simply put, an exponentially enormous portion of the population has the desire or need to investment in land property. The challenge however comes in turning the land property into an income generating investment venture, as would be expected for most investment option in the market.
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THE SOLUTIONS:
There are various options and solution for converting your land into an income generating property, ranging from real estate and agricultural investment option. This article focuses on real option that you can utilize to turn your land property into an income generating vehicle, as outline by the various options below:
- Permanent Real Estate Development: – Development of permanent Real Estate Structures is what comes to mind to most people when they want to add value into land property, for income generation. This can include development of residential real estate development, commercial real estate, industrial real estate development, health care real estate, or education institutions like school. The limitation to this is that Permanent Real Estate Development is capital intensive and most people may not have all the capital for the investment venture.
- Temporary Vocational Rentals: – Vacation rentals can present a lucrative path to profits on your land property. Not only can you make some side hustle income from vacation rentals, but you could potentially make a significant amount of money and build up a substantial passive income stream if you’re in a highly-trafficked tourist locale. This could include development of temporary rental structures like camp sites and temporary cottages for rent.
- Lease Option: – Lease option of the entire land property is another option for generating income on land property. This can include lease out the land for agricultural purposes or commercial purposes. The land owner would enter into a lease agreement with the lessee who gain exclusive use of the land property for a certain period of time.
- Collateral security to borrow Investment Capital: – Another option of generating income on land property using the land as collateral security to borrow capital for investment purposes. The investment can be on the land property or elsewhere. The landowner must however be able to work out the investment returns of the proposed investment to ensure that the returns are more than the cost of capital he or she is borrowing.
- Special Events/Corporate Retreats/Religious Retreats: – The event world has been growing in Kenya, and people want to have a getaway weekend or an experience on a farm, ranch or property outside of the city. Your land can provide the opportunity to them by leasing out to hold special events like corporate events or religious retreats, if your land is strategically located for easy access.
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THE CONSULTANT TO ENGAGE:
The Consultants to engage in advisory for real estate investments and income generation is a Real Estate Investment Consultant and Research Analyst. Buildafrique Consulting Group is a specialist in Real Estate Development Consultancy, advisory on Investment in Real Estate, Real Estate Finance, Development Project Management, and Quantity Surveying.
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Writer of the Article:
This Article is written by Buildafrique Consulting Group, Kenya multi-disciplinary consultancy, that offers END-TO-END DEVELOPMENT CONSULTANCY, REAL ESTATE, and PROJECT FINANCE solutions through specialized subsidiaries. Among our solutions includes:
- Feasibility Studies and Market Research.
- Project Finance and Capital Raising.
- Joint Venture & Finance Structuring.
- Project Management.
- Investment Design Appraisal.
- Quantity Surveying
- Construction Cost Consultancy
- Physical Planning and Planning Permissions
- Environmental Management and Impact Assessment
- Real Estate Development and Structured Investment Solutions
- Property Valuation
- Marketing and Property Sales Agency
- Property Management and Facility Management
Our Contacts:
- Office: Navigators, Kindaruma Road, Nairobi.
- Website: buildafrique.com
- Email: [email protected]
- Tel: +254 20 8058493 / Mobile: +254 722 474285
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