Selling Your House For Profit In Kenya – Things To Consider
Selling Your House For Profit In Kenya – Things To Consider
Do you want to sell your house for profit in future? It is sometimes more interesting to wait a few more years before acting out. Discover how much the sale of your property in Kenya can be optimal.
There is no minimum time limit for the resale of his house or apartment. In fact, nothing will stop you from selling your home as soon as you buy it.
But as the owner, you will surely want to at least get your bet back. In addition, taxation can also be another problem While Flipping A House For Profit.
Here are some information that can help you know when to sell your property in Kenya.
Buying Home As An Investment
After seven years of rising in real estate prices, the housing market in Kenya is now slowing falling as political uncertainty lingers after petitions are filed in the Supreme Court to overturn Uhuru Kenyatta’s election victory.
When a household develops a real estate acquisition project, in a majority of cases, they turn to the purchase of a house. In Kenya, single-family home remains the preferred home of buyers.
Beyond these reasons, buying a home in Kenya is also a lifestyle choice. Such a real estate project excludes in fact the centers of large cities (such as Nairobi, Mombasa) where house prices are un-affordable for most buyers.
A home purchase is therefore rather in a residential area, quiet, far from the turbulence of the hearts of cities.
It is also, most often, the acquisition of a principal residence; but in some cases, especially in areas with high tourism potential, it is possible to consider the choice of a house as a real estate investment opportunity in Kenya.
Is It A New house or old house?
Both possibilities have their advantages and disadvantages. Buying a house in the new home gives you the right to financial assistance, including the zero-rate loan and the property tax exemption for two years from the completion of the work (or up to five years if the housing respects certain standards).
In addition, the acquisition costs are lower (2 to 3%). However, if you want to build, you will first find a land to buy.
The purchase of a house in the old allows to live in a property with more charm and cachet, sometimes even stronger than new constructions (it all depends of course on the budget you have, the houses of charm in downtown costing much more than “newer” townhouses).
You can also benefit from the loan at zero rates if you are first-time buyer, but the conditions under more drastic than in the new .
Among the disadvantages include older materials, less efficient insulation (standards are older), ageing facilities, renovations to predict, a greater chance to discover hidden defects (administrative or not).
Did you bought a house to live in immediately or to renovate?
This is one of the golden rules of the real estate market kenya: if a seller wants to sell his property more easily, he must ensure that visitors can relate and feel themselves in the dream home.
This involves limiting as much as possible the number of objects and trinkets visible, or even a painting to give the property a more “neutral” appearance. Thus, when you visit the house, you are able to know quickly if you see, you put your furniture and your bags, without touching anything.
There is another possibility: buy an old house and renovate it. In this case, you must, before signing a sales agreement, take stock of the work scope to be planned: solidity of the building and state of its structure; waterproofing of the roof; insulation of walls, floor and attics; standards for electrical installations, gas, water and sanitation.
If you’re not a do-it-yourself , get a professional to point out the important points you should not miss. Also, consider that a home purchase to renovate involves embarking on some administrative steps to file preliminary declarations of work or even obtain building permits.
Generally, the longer you live in your main home, the more you will benefit. Indeed, we must first remember that real estate costs are high in France: it is therefore more profitable to buy for the long term.
Reselling too soon will involve new costs, such as:
- agency fees (if you have gone through the services of a real estate agency),
- diagnostic costs (to be done by experts for the resale of your property),
- a mortgage release fee (if you have borrowed money to buy the property you are reselling),
- condominium fees,
- real estate VAT, for property built less than five years ago (however, if it is your second sale in five years, you will not need to pay the tax anymore).
When you sell, you will also be required to pay taxes on capital gains you realize on sale in Kenya. But know that there are cases of exemptions:
- Sale or transfer of property of a deceased person for estate administration purposes.
- Transfers of family property between former spouses, spouses and close family members.
- Transfer for loan guarantee or debt.
- Transfer of land sales below 3 million KSh.
- Transfer of personal residence occupied for 3 years before the transfer.
- Record a property to an official receiver or liquidator.
- Sale of the property of the deceased during the administration.
- Machine transfers (e.g. motor vehicles).
- Issue of debentures or shares.
- Transfer by tax-exempt organizations (in accordance with the Income Tax Act, Cap 470)
- Public interest transfers authorized by the Treasury during restructuring or reorganization.
- Sale of less than 50 acres of farmland.
- Transfer of shares and other securities sold and purchased on the Nairobi Stock Exchange.
- Transfer of securities from the recognized pension plan.
- Income from the sale of property taxed elsewhere.
It will obviously be necessary to take into account the market price. When real estate prices rise, this is the right time to resell your property, hoping for more profit. Also note that the best time to sell is spring, as the number of applicants is the highest at this time of the year.
In addition to the price of the house, it is necessary to think about notary fees, property and housing taxes, maintenance costs and expenses.
If you have a home purchase project in mind or Planning To Buy Property In Kenya, then visit Hayer One, a multinational real estate development company in Kenya which deals in creating high-end residential apartments and offices in Nairobi.
Check Out Flats/Apartments For Sale In Kenya – By HayerOne