Understanding Stamp Duty in Kenya on Property Purchase

by | Sep 16, 2024 | Real Estate | 0 comments

Buying property in Kenya is always an excellent investment. It is a choice that always has good value in returns, whether as the resale value of the house, the safety of a family home, or a generation of regular income.

However, for any Kenyan looking to buy a house, there are a number of questions. One of them is whether to buy ready houses or purchase off-plan houses.

Off-plan vs Ready Properties – The Main Difference

You may be wondering, what is an off-plan property? In brief, these are properties which are sold before construction starts or in early stages. Off-plan properties in Kenya are mostly sold off architectural blueprints, mockups and 3D renders.

Ready properties on the other hand, are houses that the developer has already constructed. When buying a house in Kenya, a ready property gives you a chance to view the built brick-and-mortar structure.

Advantages of Buying Ready Houses in Kenya

As it is with everything else, there are pros and cons of buying either an off-plan, or a ready property. Let’s dive into it the pros of buying a ready property in Kenya.

Size

The size of a house, the rooms, and even the plot are measured best visually rather than on blueprints. When you buy a ready property, you get to see all these for yourself. Further, ready properties often have show houses. A show house is furnished, and one can tell how much space each room has in active use. Plus, as opposed to an off-plan property, this size won’t change.

Limited Market Fluctuations

The real estate market in Kenya may fluctuate over a long period. This may affect the value of a house and even the attraction of a residential area. For example, you may be looking to buy a house and earn rental income from it. Buying ready property in Kenya makes you less susceptible to changes in market conditions. Hence, you stand a good chance to gain the expected returns on investment.

No Delays

Property development is subject to timeline changes due to many factors including some beyond the control of the developer. However, a ready house does not face the risk of falling behind schedule. Once you close the deal, you can move into your new home.

No Disruptions

As mentioned early, property development takes time. An off-plan property in Kenya can take up to two years to be completed, sometimes even longer. In the event you get in early, you may be subject to disruptions. Think about construction workers shouting, mud, heavy machinery noise, etc. On the other hand, a ready house offers you an immediate, serene, and clean environment.

Takeaway

There are pros of buying off-plan properties in Kenya. For instance, they often have more customizable payment plans and may be cheaper. In addition, there are cons of buying ready properties, a key one being very little customization can be done.

However, buying properties is always a serious investment. Whether you decide to go the off-plan way or the ready properties route, I trust you will take your time and make the right choice.

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