Various studies and reports on investing in Real estate in Kenya holds that real estate investing is presumably a good deal. There is increase of equity over time and has proved to be a long-term investment to many. These has attracted foreign investors as the growth and stability in real estate in Kenya has proved to be a great opportunity.

Reasons to invest in real estate in Kenya.

1. Real estate has a high tangible asset value.

Tangible assets are physical things like property, and equipment among others that are worth money. Real estate, especially, will always have monetary value.

2. Real estate appreciates in value

Real estate tends to appreciate over time increasing owners’ equity. Not only will the building or home itself likely grow in value, but the actual land that it is built on will also usually be worth more over the years. In some markets, it is not uncommon for the land to be worth more than the house that stands on it or for the land value to continue to rise even without a house on it

2. Real estate appreciates in value

Real estate tends to appreciate over time increasing owners’ equity. Not only will the building or home itself likely grow in value, but the actual land that it is built on will also usually be worth more over the years. In some markets, it is not uncommon for the land to be worth more than the house that stands on it or for the land value to continue to rise even without a house on it

3. Real estate is a way to diversify your portfolio.

This is another way to lower some of your risk, especially if you are investing lots of money in other opportunities. Most experts recommend diversifying your portfolio, so you will not lose everything at a go if the market where you have most heavily invested happens to go south. Real estate is an excellent place to park some of your money a place much safer than many other investments

4. You can predict the cash flow of real estate investments.

Most investments do not allow you to predict the kind of cash flow you will receive. With real estate, on the other hand, if you know what a property is renting for and that you have a tenant, you will know what your cash flow will be. If you keep the property occupied, you can count on that money every month. Remember, though, to budget for routine maintenance and repairs, and factor that into your yearly expenses.

5.You can establish a passive income source.

Because you can predict cash flow, you can also figure out ways to maximize revenue or cut expenses to establish a passive income source that will last for as long as you own the property.

6.You can claim depreciation as an investor

Although real estate usually appreciates in value, the buildings themselves degrade over time, so investors can claim a depreciation non-cash expense on their taxes.

7.You have tons of options.

There are all sorts of ways to invest in real estate. Buying your own house counts. Or you can buy a fixer-upper, renovate it and flip it. You can rent out a home, offer a lease-option agreement (rent-to-own), or invest in a REIT. Whatever your level of commitment, you can probably find a way to invest in real estate. A REIT is a real estate investment trust. Individuals can invest in the trust that, in turn, usually owns and manages many real estate investments that produce income through investing in properties like shopping malls, hotels, and resorts.