Homeownership is a significant goal for many Kenyans. It is seen as the next step in real estate investment after years or months of renting a house. It comes with many advantages. For instance, it allows you to increase your net worth, considering that homes are assets that typically rise in value over time. It also gives you a form of security for the bank if you want to take out a loan. These are part of the many perks of owning a home. Based on these factors, one may wonder how much it would cost to own your own home.
Owning your own home is not as complex as it may seem. It may take savings or at least getting a loan to afford the home of your dreams. Also, the house search itself may require you to put in some time, especially if you want to find a home within a particular budget. Luckily, online and offline features will help you navigate these hurdles and find a home. Take advantage of these tools to ease the process of buying a home, and you will realize that it is a lot easier than it looks.
1. Location of the house
To determine how much it will cost for you to own a Kenyan home, you need to consider many factors. First, the location of your prospective home will come with different costs. The building or buying a home in the suburbs is slightly less expensive than one closer to a city, especially in Nairobi. Even so, different neighborhoods are more costly to live in than others. For instance, houses in the Westlands side of Nairobi are more expensive than those in Eastlands.
Also, if your neighborhood is developing fast, there is a chance that sellers are taking advantage of this boom. Property developers will also be looking to cash in on their investments, and buyers will bear the brunt of this growth.
2. Building vs. buying
The next factor affecting your costs is whether to build a house or buy one already complete. New homes are expensive because property developers want to profit from the sale. Meanwhile, a house you built yourself is more affordable because there are no extra charges for construction costs.
3. Size and design of the house
The other determining factor is how big you want your home to be, plus the complexity of the final design. Bigger homes take up more materials and also a more extended period. For that duration, you will need to pay for additional labor costs. If the design of your house is intricate, then that will cost more in terms of labor and expertise.
4. House features
Are you thinking about building a sustainable home? Smart, environment-friendly houses are the future of home construction. Owning such a house is an excellent idea because it means that your house will be attractive to any future clients, especially those looking for a sustainable lifestyle. While this will undoubtedly increase your home’s cost, it is a wise investment that will benefit you in the long run.
5. Sample house costs
After you have evaluated these factors, you can now look at the exact prices of your potential home. Some expensive homes in Kenya are found in Nairobi neighborhoods, such as Karen in Kitisuru. These may cost as much as Kshs 200,000,000. On the other hand, buying land can cost between Kshs 50,000 and Kshs 30,000,000. Construction costs will be about five million Kenyan shillings or less for those who want to build their houses.
While homeownership may seem like a big and daunting goal, that should not discourage you from starting the journey. You may have to save or build up enough equity to get a mortgage. Either way, the sooner you start, the faster you can make your dream a reality.