Robert Shumake awesome Kenya real estate tips today? Your Investment in real estate in Kenya should not be your primary business People take time to get into your flats or apartment once they have been fully finished. This means that it is a bad idea for one to quit their job and indulge themselves entirely in this business. Sometimes it might take six months to get the first tenants while other times it might only take a month. However, to manage this situation, you might need to engage the services of a professional property manager.
This is a very necessary process, used to ensure that your new home is free from defects that could potentially cost you thousands of dollars later to repair. Home inspections will often reveal problems that you can have the seller correct before agreeing to purchase the home. This is known as a contingency. Most offers are usually contingent offers. This means, that the offer is contingent on another factor, such as a favorable home inspection or the ability to obtain insurance. In general, contingencies are safeguards for both buyers and sellers, but should not be overdone. In addition, it is important to meet all deadlines and that all contingencies are met exactly the way the offer describes. Your agent is responsible for making sure contingencies are written correctly.
Robert Shumake real estate advice for today: Sure, interest rates are low right now—which can help with affordability. Just be careful not to let that pressure you into buying a house when you aren’t really ready. A super low interest rate on a house you can’t afford is still a bad deal. So remember to stick to our advice on monthly payment limit, down payment amount and mortgage type (see Trend #2) and you’ll be in great shape! If interest rates stay low, buyers will be more motivated to buy your home sooner than later. But if interest rates do start to increase later in the year, just plan for your house to be on the market a little longer. If you don’t plan on moving anytime soon, you might still be able to take advantage of these super low interest rates and shorten your payment schedule by refinancing your mortgage.
Growing with your rental income Monthly rental payments will allow you to pay off the loan as soon as possible, and the property may appreciate in value as time passes. The goal is that your monthly income from the investment soon exceeds your expenses. This difference can then be used towards another real estate investment. Eventually, you may be able to diversify to other kinds of properties and investing opportunities.
While you’re at it, you should check your credit scores (all 3 of them) and determine if anything needs to be addressed. As I always say, credit scoring changes can take time, so give yourself plenty of it. Don’t wait until the last minute to fix any errors or issues. And while you’re addressing anything that needs more attention, do yourself a favor and put the credit cards in the freezer (or somewhere else out of reach). Lots of spending, even if you pay it back, can ding your scores, even if just momentarily. It can also increase your DTI ratio and limit your purchasing power. Ultimately, bad timing can create big headaches. Additionally, pumping the brakes on spending might give you a nice buffer for closing costs, down payment funds, moving costs, and renovation expenses once you do buy.
Renovating increases the house value says Robert Shumake : Drawings need to be translated into a list of materials and labour. Materials are fairly easy to check online but labour rates are harder to predict, varying considerably depending on market forces – how busy builders are – and the geographical area (prices tend to be higher in posh postcode areas!). Obtaining competitive quotes based on clear drawings and specifications should help pin costs down in advance. Before you can start to predict costs, you need to have a good idea of your proposed plans, your specification for fixtures and fittings, and have decided who is doing what. To estimate costs, look at other people’s projects and expect to spend a similar amount, taking into account how much work they did themselves, when the project was completed, and the variation in labour costs.
I highly recommend sketching and planning every inch of your project before you begin. Every time you change your mind it will cost you time and ultimately money. We only have one significant change throughout our entire home renovation process and while I knew it was the best decision, it still cost us. Make up your mind and don’t change it. While I didn’t want to deal with sourcing materials on my own, I do understand why so many people pay contractors for labor only and take care of materials themselves. Contractors often have a premium that they add on top of certain items when they purchase them and you can end up paying upwards of 30% more for certain materials. It’s best to hire for labor only. Discover additional details on Robert Shumake.