Why Should you Invest in Real Estate?

From time immemorial, real estate has been used as a sign of wealth and status. It can act as an investment opportunity and helps in building personal credibility among friends and family as it’s a show of prosperity

Why Should you Invest in Real Estate?

.Diversifying your portfolio is very important. If you put all your eggs all in one investment, you could suffer a loss on the brink of an eye. It’s among the safest mode of investment despite the development of other forms of investment such as stocks, bonds, and crypto in recent times. But real estate remains the most secure and beneficiary avenue for long-term profitable forms of investment.

Real estate is necessary as the market is always high as people are always looking for homes to reside in. This makes real estate among the best investments in one’s lifetime if you decided to invest in it.

This article aims to discuss and examine the benefits of venturing into real estate, and how and why it’s a great investment.

  • Appreciation of value

Real estate always increases in value over time and the value of your property or investment will grow in value over the long term. Rents also increase in value over time and common sense shows, that the longer you hold on to real estate the more its value increases.

Despite market crashes or burst market bubbles, the sector has shown resilience to recover quicker than other sectors. Property investment being tangible, allows it to be capitalized as leverage to grow numerous cash flow streams.

  • Portfolio diversification

Having invested in real estate promotes diversification of assets. Having real estate in a diversified portfolio helps to reduce your portfolio volatility as a low correlation with other major asset classes and thus providing higher return per unit risk.

  • Inflation hedge.

The hedging capability of real estate comes from its positive relationship between GDP growth and demand for real estate. As the economy grows and the demand for real estate increases and drives rents higher thus translating to higher capital values.

Real estate tends to maintain its stable position by passing the inflation costs directly to renters and also by incorporating some of the inflationary pressure through capital appreciation.

  • Real estate is improvable.

Real estate especially housing is palpable as it’s made up of timber, concrete, and glass. These substances make it more improvable through repairs either cosmetic or structural.

 Kenya has a vibrant real estate market that provides a provides wonderful opportunity to maximize your income potential and help build your wealth. The market has a high appreciation value which has quadrupled since the start of the century. It’s also the safest and least volatile investment class in the Kenyan market compared to bonds and stocks.

There are numerous real estate companies in the country that provide high-quality products and convenient prices and on time. Nyota njema real estate stands out from the rest.

The company began in 2018, relatively new to the market, but has grown to be among the fastest-growing real estate companies in the country offering sound investment opportunities for both local and international investors.

They offer a wide range of services and products that help bridge the demand gap in the market with supply., by selling land in and around Nairobi City and from satellite close satellite towns. They also have housing projects within the city to help satisfy the need for affordable housing spaces.

Below are some of their projects;

  1. 50*100 Nanyuki Land Plots going for sh.275K
  2. 50*100 Diani Land Plots going for sh.400K
  • 50*100 Juja Farm Plots going for sh.750K
  1. 50*100 Joska Plots going for sh.800K
  2. 50*100 Kitengala Plots going for sh.985K
  3. Nyota New Kitisuru 1bedroom apartment going for sh.1.4M
  • Nyota New Kitisuru 2bedroom apartment going for sh.6M

The company plans to be strategically flexible and to continually build on the experience they have with our customers and make sure we are close to what we do as a company. In the long run, they plan to be market leaders in the market but they are focused on the short term to understand the trends in the market and how they can adapt accordingly in order to capitalize on the market.