When buying a rental property, there are several key factors to consider to ensure a successful and profitable investment. Here are five important factors to keep in mind.

1 Location:

Location is one of the most critical factors when buying a rental property. Choose a location that has strong rental demand, good amenities, and is in a desirable neighborhood. Properties in areas with good schools, public transportation, and access to shopping and entertainment tend to attract quality tenants and have higher rental potential.

2 Cash flow:

Calculate the potential cash flow of the rental property by subtracting all expenses (mortgage, property taxes, insurance, maintenance, property management fees, etc.) from the rental income. Ensure that the cash flow is positive, as this will generate a consistent income stream and make the property financially sustainable.

3 Market conditions:

Research the local real estate market to understand current trends, vacancy rates, and rental prices. Investing in a market with strong growth potential and a stable or increasing demand for rental properties can lead to higher returns on your investment over time.

4 Property condition:

Thoroughly inspect the property to assess its condition and identify any necessary repairs or renovations. Consider the cost of these improvements and factor them into your budget. Buying a property that requires significant repairs can increase your upfront expenses and affect your overall profitability.

5 Financing and affordability:

Determine how you will finance the purchase of the rental property. Calculate the down payment and the monthly mortgage payments, and ensure that the property’s rental income will cover these expenses comfortably. Additionally, consider the potential for rental income growth over time to ensure you can handle any future increases in expenses.

Renovations are a powerful tool for homeowners looking to increase the value of their property.

1. 
   Curb Appeal:
   • Emphasize the importance of a good first impression by enhancing your property’s curb appeal.
   • Discuss landscaping improvements, exterior painting, and the importance of a well-maintained entrance.
2. Energy Efficiency:
   • Explain the growing demand for energy-efficient homes and how it can add value.
   • Discuss upgrades such as installing energy-efficient windows, improving insulation, or upgrading to smart home systems.
3. Open Floor Plans and Space Optimization:
   • Explore the benefits of open floor plans and removing walls to create a sense of spaciousness.
   • Discuss ideas for optimizing existing space, such as converting underutilized areas into functional rooms or storage spaces.
4. Upgrading Flooring and Lighting:
   • Discuss the impact of flooring and lighting on the overall appeal of a property.
   • Suggest upgrading flooring materials, such as hardwood or luxury vinyl, and replacing outdated lighting fixtures.
5. Hiring Professionals:
   • Explain the importance of hiring licensed and experienced professionals for major renovations.
   • Provide tips on vetting contractors, obtaining multiple quotes, and checking references.
6. Staging and Presentation:
   • Discuss the value of staging your property to create an inviting and desirable atmosphere for potential buyers.
   • Provide tips on decluttering, depersonalizing, and arranging furniture to maximize the visual appeal.

Conclusion: Renovations have the potential to significantly increase the value of your property. By carefully planning and executing strategic renovations, focusing on key areas such as the kitchen, bathroom, curb appeal, energy efficiency, and optimizing space, you can attract buyers and maximize your property’s value.

Making your home more energy-efficient not only helps reduce your carbon footprint and save money on utility bills, but it can also increase the value of your home.

1 Upgrade your insulation

Proper insulation in the walls, attic, and floors can help reduce energy consumption and save money on heating and cooling costs. Consider upgrading to higher-quality insulation materials to improve your home’s energy efficiency.

2 Install energy-efficient windows

Installing energy-efficient windows with low-emissivity (low-E) coatings can help reduce heat loss in the winter and heat gain in the summer, which can save energy and money.

3 Upgrade to energy-efficient appliances

Upgrading to energy-efficient appliances, such as refrigerators, dishwashers, and washing machines, can help reduce energy consumption and save money on utility bills.

4 Plant trees and shrubs

Planting trees and shrubs around your home can provide shade during the summer months, which can help reduce cooling costs.

By following these tips, you can make your home more energy-efficient and reduce your carbon footprint, while also saving money on utility bills and increasing the value of your home.

Buying a home is an exciting time, but it can also be overwhelming with all the decisions you’ll need to make. Here are the top 5 things to consider when buying your first home:

1Budget

Before you start looking for a home, it’s essential to determine how much you can afford. Consider your income, monthly expenses, and savings to calculate a realistic budget for your home purchase.

2 Location

he location of your home is crucial. Think about your daily commute, access to amenities, schools, and local attractions. Research the neighborhood’s safety and crime rates to ensure you feel comfortable living there.

3 Home Size and Layout

Determine the size of the home that you’ll need to accommodate your family comfortably. Consider the number of bedrooms and bathrooms, the size of the living area, and storage space.

4 Condition of the Home

Before purchasing a home, have it inspected by a professional to ensure that it’s in good condition. This inspection can help identify any potential issues, such as structural problems, electrical or plumbing issues.

5 Resale Value

While you may plan to live in your home for years, it’s important to think about the potential for resale if you ever decide to move. Consider the area’s housing market and the home’s amenities to ensure that it’s a good investment.

By considering these factors, you’ll be better prepared to make informed decisions when purchasing your first home.

1 Rental Properties

his involves buying a property and renting it out to tenants. The rental income covers the mortgage payments and other expenses, and the investor builds equity over time.

2 Flipping

This involves buying a property below market value, renovating it, and selling it for a profit.

3 REITs

Real Estate Investment Trusts (REITs) are companies that own and manage income-generating real estate properties. Investors can buy shares in the company and earn dividends from the rental income.

4 Buy and Hold

This involves buying a property with the intention of holding onto it for the long term, allowing it to appreciate in value and earning rental income in the meantime.

5 Commercial Real Estate

Investing in commercial properties like office buildings, retail spaces, and warehouses can generate steady income streams and provide long-term appreciation.

Property valuation is important for making informed investment decisions. Investors need to know the value of the property before deciding whether to buy or sell.

1 Comparative market analysis (CMA)

This method involves analyzing the prices of recently sold similar properties in the same area to determine a property’s value.

2 Income approach

This method is used for investment properties and involves calculating the property’s potential income stream based on rental rates and occupancy levels.

3 Cost approach

This method involves estimating the cost to replace the property with a similar one, minus depreciation.

4 Sales comparison approach

involves comparing the property to similar ones that have recently sold, taking into account differences in features and location.

5 Gross rent multiplier (GRM)

This is dividing the property’s sale price by the annual gross rental income to determine the property’s value.

Property valuation provides an accurate estimate of the value of the property, which is crucial for setting the right price. An overpriced property can deter potential buyers, while an underpriced property can result in a loss for the seller.

When it comes to owning a home, many people invest time and money into making improvements that can increase their property’s value. While some upgrades may be purely cosmetic, others can offer a significant return on investment when it comes time to sell.

1 Kitchen renovation:

The kitchen is often the heart of the home, and a well-designed and updated kitchen can add significant value to your home. Consider updating the countertops, cabinets, and appliances for a fresh and modern look.

2 Bathroom renovation:

Like the kitchen, a bathroom renovation can also add significant value to your home. Consider upgrading the fixtures, replacing the tiles, and adding a new vanity or bathtub.

3 Upgrade your flooring:

Old, outdated flooring can bring down the value of your home. Consider upgrading to hardwood or tile floors to make your home feel more modern and luxurious.

4 Curb appeal:

First impressions are important, and improving your home’s curb appeal can make a big impact. Consider adding landscaping, a fresh coat of paint, or new siding to enhance your home’s exterior.

5 Smart home technology:

Homebuyers are increasingly interested in smart home technology, such as smart thermostats, security systems, and lighting. Installing these systems can make your home more attractive to potential buyers.

Whether you are looking to sell your home in the near future or simply want to increase its overall value, this topic will provide useful insights and tips for making smart and strategic home improvements.

• GATHER YOUR FINANCIAL INFORMATION.

You will need  to provide documentation of your  income, assets, and debts. This includes tax returns, bank statement and credit cards statement.

• SHOP AROUND FOR LENDERS

Look for lenders that offer competitive mortgages rates and terms. You can compare rates from multiple lenders top find the best deal.

• SUBMIT A MORTGAGE APPLICATION.

                        Once you have found a lender you want to work with, you need to complete a mortgage application, this includes filling out  a form with your personal and financial information with supporting documentation.

• GET A PRE- APPROVAL LETTER.

                            If the lender  approves your application , you will receive a  pre- approval  letter . this letter will include the amount of money you have been approved to borrow and the terms of the mortgage.

• USE THE PRE – APPROVAL  LETTER  TO MAKE AN OFFER ON A HOME

                                                When you find a home you want to buy , you can use the letter to show the seller that you are a serious buyer.this can help you stand out in a competitive market  and makes it more likely that your offer will be accepted.

 A couple looking for a house.

1. LOCATION

This is one of the most important key factors to consider because location dictates your access to roads, schools,hospitals and other social amenities in that particular locatio

        2   ARE THERE ANY SOURCES OF NOISE

Always make sure you choose  a place where the enviroment is peaceful  and there is no noise polution around for example by night clubs.

3      MAITENANCE  LEVEL  OF YOUR HOME

                             Nobody wants a dirty or untidy enviroment around them, since this may bring along dieases that may be hamful to everyone around that  enviroment. 4  THE HOUSE EXTERIOR

Don’t let the excitement  of  the perfect interior  make you  forget the the importance of the exterior of the house.this is  important because its  the first  thing people set their eyes on when to visit or even pass-by

• 5 THE HOUSE SIZE

You should have an idea of what size you want even before buying a house. Figure out the minimum or maximum square footage that you want for your house.

This will help you get the perfect home that you want without going through alot of stress.

In recent years many individuals have been financially strained due to the global pandemic and the subsequent rise in the cost of living.

Thanks to Rama Homes and their carefully constructed payment options many Kenyans have had the opportunity to invest into the real estate market. Rama Homes offers some of the lowest entry points of real estate investment at 10%!

You may have come across several real estate developments that offer rent to own payment options. 

Have you stopped to wonder what it actually means? What is rent to own?

Well to put it simply, you pay towards owning the home you live in. So your rent goes towards the cost of the apartment. 

Let us take a closer look at the entire rent to own process. 

There are several real estate developers in Kenya that offer rent to own properties. However, one of the more prominent ones is Rama Homes Limited. They have extensive experience in developing residential properties in prime locations in Nairobi with an occupancy rate of 98%. 

The Rama Homes Catalog

Syokimau – Gateway Park [3 bedroom apartments]

South C – Rama Heights [3 & 4 bedroom apartments]

South C – Euromax Heights [3 bedroom apartments fully occupied]

Parklands – Marina Heights [Studio,1,2 & 4 bedroom apartments]

Parklands – Jumeirah Heights [3 & 4 bedroom apartments]

The rent to own payment option is not as common as you would think. In fact not many developers in Nairobi offer it as a viable way for you to own a home. 


During 2019 the Kenyan economy was hit rather hard with the effects of Covid-19. Businesses were in the red and many people lost their jobs resulting in less money to invest into real estate. 

Don’t get me wrong, there were still people investing but not as many as before 2019. 

What has helped Kenyans to invest into their dream homes is Rama Homes’ flexible payment option–which includes rent to own. 

How does rent to own work at Rama Homes?

The first step in the process is to decide which apartment you are interested in. As I mentioned previously we have several options to choose from. Allow me to assume that you’ve decided that Gateway Park is the ideal place for you and your family. 

The total value of a 3 bedroom apartment at Gateway Park is currently KSh 8,500,000 with a 4 year payment plan. 

Deposit -> 10% ( KSh 850,000)

First  Monthly Installments -> 47% during the first 2 years.

 Second Monthly Installments -> 43% after the first 2 years. 

The rent to own aspect of this payment plan comes in after the two year construction period. Once either you or the tenant may occupy the apartment you can then begin making monthly payments (rent) towards owning the apartment. 

No it’s not a mortgage.

Besides, the rent to own payment plan differs from a standard mortgage in one major way. ZERO percent interest.

 

This allows for better financial stability because you aren’t charged interest. 

The rent to own payment plan is different for the off-plan apartments compared to the completed apartments. The major difference is the initial deposit ranging from 57-60% because the apartment is already complete. 

The great thing though is that once someone occupies the apartment. They can begin making payments towards owning the apartment. 

It is important to remember that Rama Homes offers various payment options (mortgage, cash buyer, rent to own and to let).