In addition to being a source of pride, owning real estate in Kenya is a wise financial move. Kenya is attracting more investors looking for opportunities in the real estate sector thanks to its robust economy and stable political environment. We are going to explore the advantages of owning real estate in Kenya in this blog post, including investment opportunities, tax advantages, and lifestyle advantages.
The investment opportunities that come with property ownership in Kenya are one of the main advantages. Kenyan real estate has grown steadily over the past decade, with annual property value growth averaging 1.7%. Real estate is a wise investment due to the expectation that this growth will continue in the years to come.
Kenya has a high housing demand, which is anticipated to rise as the population expands. Fantastic opportunities for property owners to generate rental income are presented by this demand. As a prospective property owner, you have the option of renting out either your home or your business premises. The rental income from these properties can be a reliable source of passive income for you.
The option to invest in real estate investment trusts (REITs) is another investment opportunity in the Kenyan real estate market. REITs are investment vehicles that own, manage, or finance real estate properties that generate income. By investing in REITs, investors have the chance to profit from the rental income generated by the properties that the REITs own.
The tax advantages of property ownership in Kenya are an additional benefit. Mortgage interest payments, costs for upkeep and repairs, and depreciation are all deductible from taxes for property owners in Kenya. The tax burden on property owners may be lessened thanks to these tax deductions.
Additionally, Kenyan property owners are exempt from paying capital gains taxes on the sale of their primary residences. When a property is sold, a homeowner who has owned it for more than three years is exempt from paying capital gains tax.
Owning a property in Kenya also comes with lifestyle benefits. Kenya is a beautiful country with a rich cultural heritage, diverse landscapes, and a vibrant social scene. Owning a property in Kenya provides an opportunity for property owners to experience the country’s culture and natural beauty.
World-famous national parks like the Maasai Mara National Reserve, Amboseli National Park, and Tsavo National Park can be found in Kenya. Excellent opportunities for wildlife safaris and nature walks are provided by these parks. Property owners in Kenya have the chance to travel to these parks and take in Kenya’s breathtaking natural beauty.
In addition, Kenya has a thriving social scene with lots of eateries, bars, and entertainment establishments. Property owners in Kenya have the chance to take part in the vibrant social scene and culture of the nation.
In conclusion, Investing and diversifying in the Kenya Real Estate market is a highly profitable venture that will ensure a yearly increase in the company’s net worth through capital appreciation. Despite the Kenyan Shilling’s 3.5 percent annual depreciation, the resulting eight yearly asset percent capital appreciation results in an overall positive increase in asset value in US dollars.
If you’re considering investing in real estate, you should arm yourself with enough information to weigh your options carefully.