Investors who put off investing in real estate often have fears and hesitations that keep them from committing.
There are a lot of people who state they desire to purchase property. They discuss things like purchasing real estate or developing a portfolio or home ownership. But, years go by, and the plan languishes on the “someday” list. So many would-be investors wait, why? It’s never really a lack of interest. Typically, it’s fear, uncertainty, and the human nature of procrastination when it comes to making huge decisions. Knowing these reasons will enable investors to move forward with confidence, which in turn will help real estate companies better serve their investors.
Why Real Estate Feels Different
Real estate is not a cell phone or a savings account. There are a lot of steps involved in the process: searching, site visits, ownership checks, payments, and title transfer, and the amounts are large, the commitment is long. With so much on the line, it’s understandable to be hesitant. A wrong move can cost a lot, and the money invested in property may not be available in a hurry. Every fear below is based on something that has really happened and people have experiences that have made them doubt and delay on investing.
1. Fraud, fake ownership
In Kenya, forgery of titles, multiple sellers and plots sold to multiple buyers have been reported for years, partly the reason for the digitization of land records on platforms such as Ardhisasa. What to look for: Conduct a proper title search for the registered owner, confirm with the identity of the Seller with the owner, and make payments through verifiable accounts and never cash.
2. Disputes over ownership and late title deeds
A true sale can go to court when family members oppose the sale of family property and some purchasers have to wait for many years for the sale to be finalized as the primary title has not been divided. Things to verify: ensure that Land Control Board allows the use of agricultural land, hire a lawyer, and obtain the transfer of title timeline in writing.
3. Losing money
Land around key roads including the Thika Superhighway has been reported to have surged in price after improvement while plots located on assurances of the construction of roads that have not been constructed have languished for years. Things to watch out for: competition, nearby roads and water, and medium/long term.
4.Hidden costs and taxes
Buyers have to pay stamp duty (which is about 4% in urban areas and 2% in rural areas in Kenya), legal, survey and registration fees, and the eventual capital gains tax. To check: request a letter detailing all costs, and verify current fees with your attorney.
5. Repayment of debt and loans
Many borrowers found repayments difficult when the interest rate increased in Kenya in 2023 and 2024. Things to look out for: shop around and determine if you can still afford the loan if rates change.
6. Locked-up cash
It takes time to market a property and an emergency can result in a sale at a lesser price. Check: Maintain an emergency fund and observe how readily other plots for sale are selling around you.
7. Poor location and flooding.
The April and May floods this year, especially the dam burst at Mai Mahiu which led to the deaths of several dozen people, made it clear that the location and drainage of a home determines its safety. Things to look for: Go to the site, preferably during the rainy season, and talk to neighbors about flooding, water, and security.
8. Demolitions and unapproved land
In 2024, buildings on riparian land and road reserves were targeted for demolition in Nairobi and beyond, including some landowners who claimed that they purchased the properties in good faith. Things to look for: verify zoning and county approvals and ensure that the property is not on restricted land.
9. Projects that are incomplete and misguided agents.
Off-plan buyers may worry about a project getting stuck after they make a deposit and others are under pressure to pay fast or promises that are not included in the agreement. Things to look for: review completed projects, obtain all promises in writing, and beware of paying an advance payment into a personal account.
10. Political and Economic events
Property activity tends to slowdown prior to the elections, and Kenya’s next general election is scheduled for 2027. Things to look out for: Wait for the calm made be more expensive than it was worth, so make sure the title is clean, the location is good and you can afford the payment plan.
The psychology of avoiding tasks due to fear.
- The process of fear leading to procrastination – The fear is not an obstacle to an investment. Procrastination does. People who say “Let me think about it” usually mean that they are not ready to feel this risk yet. The delay is caused by three habits:
- Waiting for certainty – There will never be certainty in real estate – so the waiting continues.
- A choice that is too large – If there is no obvious first step, they take no step at all.
- Competing priorities – There is a need for school fees, rent, and emergencies to be paid urgently. Investing doesn’t fall under these so often, so it moves down the list.
There is no such thing as neutral delay. An immediate cost of action is felt, because money is withdrawn from the account. The delay is not apparent in the cost until years later when the land being considered is more expensive or when the same amount of money is spent for a smaller parcel of land. It isn’t about speed; it’s about changing your mindset from fear to a clear path.
Investors do not invest simply because they do not wish to invest, they invest for the avoidance of regret. But “next year” always seems to come around again and every year passes can result in a higher cost. This month, Optiven’s campaign focus is on assisting people to make that step—first on land ownership and then on homeownership. The fears listed above are all very real and the best way to overcome them is to answer them ; get to the site, request the ownership documents, know all the costs, and start within your budget.
So make it your first step this month. Schedule a site visit, get your questions answered, and begin building before the end of the year and it won’t be the end of the year, when you’re building!
Invest with Optiven Group
Call us: 0790 300300 / 0723 400500
Email: info@optiven.co.ke
https://www.optiven.co.ke/properties/
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