How often do we find ourselves having the conversation about buying things you haven’t seen then getting conned, or buying something and your friend tells you you could find it for cheaper somewhere else? It is a never-ending cycle that we have gotten used to when it concerns small things like jackets, fruits, or getting to fix a sink, but when it comes to using life savings and investments to secure a home, we need to take things seriously.
After looking into a couple of cases on developers failing to deliver, I’m somewhat convinced that it was never the plan to con aspiring home buyers or have them suffer losses when offering property at such low cost. It could have been a great idea executed badly as some of the business models look workable.
For years, Kenya’s middle and low-income earners’ demand for homes has surpassed the supply. This explains the witnessed rush to purchase off-plan affordable homes whenever they are launched in the market. People need homes, and with a flexible payment plan and a simple contract, this deal is too good to think twice.
My people perish for lack of Knowledge –Biblical Legend
Finding remedies once such schemes collapse can be tedious and time-consuming. For future investments, the following steps can help identify risky investment opportunities together with the most sensible development models that we can buy into.
It is important to carry out some due diligence on the Developer. This will aid in understanding the organization’s history, their technical capability as well as the type of works they have been a part of.
Articles featuring the developer, presence or absence of cases, quality of previous developments, registration with National Construction Authority (NCA), and their relationship with buyers and consultants are some of the items that can help you validate this project.
Is the price practical?
Property sale price is a fantastic tool that will highlight any discrepancies.The cost of the house against the construction budget should be realistic in the sense that it covers the cost of construction, overheads, and the cost of land. Making a comparison using similar neighbouring developments will make it easier to come up with an idealistic price estimate of what that house should cost.
The use of professional services will forever be emphasized regardless of how small the task may seem. As part of the due diligence, the lawyer should review the contract agreement before signing. Legal terms will be understood and any clauses that may work against you will be identified. A surveyor can further help you to find out the land-use position of the property as well as identify the legal owner of the property.
Some advertisements do sound really good to a point it looks like you can’t get a better deal than that. It is important to give yourself an array of options by visiting different projects and understanding what other companies have to offer.Take your time on decision making by consulting as much as you can before signing off all your hard work to fraud. Remember, investment in knowledge pays the best interest.