(Especially when buying an off-plan apartment)
Investing in property can be a rewarding and exciting venture, but it also requires careful consideration and research. One of the most important decisions you will make as a property investor is choosing the right developer. After all, the developer you choose will have a significant impact on the success of your investment. From timely project completion to quality workmanship, selecting a reliable and experienced developer is crucial. In this article, we’ll take a closer look at some key factors to consider when choosing a property developer in Kenya for a smooth and stress-free experience.
1. Business Establishment and Experience and Expertise
The length of time a property developer has been in business is an important factor to consider when selecting a developer to work with. Established developers, especially those with a long track record of success, have more experience in the industry and are more likely to be able to deliver quality projects. By working with an experienced developer you can benefit from their expertise, industry knowledge, and established networks. A good developer should have a deep understanding of the real estate market and the trends that impact it. They should be able to provide you with detailed information about the property, including its location, amenities, and pricing.
Elegant Properties is a second-generation family business that has been in operation since 1990. Over the years, we have built a strong reputation for delivering high-quality properties that meet the needs of their clients. Our experience in the industry has given us a deep understanding of the Kenyan real estate market, enabling us to identify the best investment opportunities for our clients.
2. Track Record and Reputation
A property developer’s track and reputation record are the most critical factor to consider when making an investment decision. By looking at the developer’s previous projects, you can get a sense of their experience, expertise, and overall quality of work. It’s important to consider both the successes and failures of a developer, as this can give you a well-rounded view of their capabilities. Look for a developer with a proven track record of success, especially in the area where you are considering investing. A developer without a track record of atleast a few completed projects should not even be considered for an off-plan purchase. Click here to see our track record.
3. Quality of Work
When investing in property, it’s crucial to consider the quality of the developer’s work. Look for a developer who is committed to delivering high-quality projects that are built to last. Elegant Properties, for example, uses only the best materials and construction techniques to ensure that their properties are durable, safe, and comfortable. They also work with leading architects and interior designers to create homes that are both functional and stylish.
4. Financial Stability
There’s no greater fear for a homebuyer or property investor than a project going bust. It’s important to work with a financially stable developer to avoid delays or incomplete projects that can negatively impact your investment. The top three red flags for any development are the following:
- It’s essential to ensure that the land the developer is buying is not pledged to any financial institution and should be free of all encumbrances. This can be easily verified by conducting a search on the title of the property.
- There is a trend in Kenya for developers partnering with landowners to develop projects together. Often these partnerships do not end well for buyers of the property and with little oversight on regulation in the country it these projects have an extremely high probability of stalling. Any disagreement between the partner will result in the buyer of any projects suffering.
- Interest-free payment periods and guaranteed rents in property may sound like attractive offers, but they are often just scams designed to lure unsuspecting buyers into making a poor investment. Interest-free periods can hide other deficiencies or hidden fees, while guaranteed rents may be based on unrealistic projections or unsustainable market conditions. Both should be avoided.
In Summary…
Ask these 4 questions.
- Has the developer been in the industry for more than 5 years?
- Has the developer completed five or more developments?
- Have you gone to see atleast one of the developers previous projects?
- Is the title deed fully in the name of the developer and free of any encumbrances, charges and liens?
- Is the project a joint venture with the landowner and are there any other 3rd parties involved?
If the answers to ANY one of the questions is a no, then you should reconsider your investment. Why risk your hard-earned money?
It important to do your research and ask the right questions to ensure that you are making a wise investment decision. By considering the reputation, expertise, quality of work, customer service, and financial stability of a developer, you can find a partner who can help you achieve your investment goals.
