The author of The ABC of Real Estate Investment in Kenya, who has more than 10 years’ experience, says investing in real estate is not always the best business move, noting that while some segments promise solid returns in theory, the profits become elusive once you start the project. People who bought land at the time made a killing because just four years later, in 2012, the price for the same piece of land had risen to Sh1.2 million. People who bought land in 2012 got their fingers burnt because in 2017, the price for the same piece of land was 1.5 million. “If you buy a piece of land and its appreciation rate is slower than the rate of inflation, then you are actually making a loss on that investment, even if you sell the land for a profit,” the land economics explains. But if you must speculate with land, Mr Kariuki gives a few pointers that might help you avoid losses.

Source: Daily Nation January 24, 2018 18:22 UTC