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Monday 27 July 2015

Real Estate Investment in Kenya-Budget for Closing Costs



Purchasing a home is a euphoric event. Once escrow begins, the euphoria can change to frustration, particularly if you are not ready for the closing costs that quickly accumulate particularly as real estate investment in Kenya is concerned.

Budget for Closing Costs – Home Inspection and Title Fees

Closing costs simply refer to the fees associated with various things associated with the escrow process in a real estate transaction. In the excitement of having an offer accepted for your dream home, you can easily lose track of the fact you are going to need to have some serious cash on hand to pay them. Many people make the mistake of only assuming they need the down payment money, and have to rush around town trying to come up with money for the closing fees. 

If you are buying a home, you need to get a professional home inspection. Doing so can reveal potential problems with the home that you wouldn’t otherwise notice. Problems can include things such as rot, termites, water leaks and a bevy of other issues. The time to do this is during escrow. Of course, that means you are also going to have to pay for the inspection. Depending on the size of the property, home inspections can run a few thousand shillings up to a few thousand. Make sure you have money set aside for the fees. 

Title insurance is something you absolutely must purchase when you buy any real property, a home, building, land or whatever. Title insurance protects both you and your lender. Title insurance is just what it sounds like. A title company will research the title of the home and essentially guarantee that the title is good. This means the seller actually owns the title and has the right to sell it to you. The title company will also make sure there aren’t any liens on the homes or other things that will cause you problems. Depending on the price of the home, title insurance can run you a couple of thousand shillings or up into the millions. Again, it is important to find out the cost and budget for it.

Title insurance and a home inspection are two things you should absolutely have when purchasing a home.


Just make sure you budget for them. www.kenyan-real-estate.com



Friday 24 July 2015

Properties Kenya – Rain, Sun, and Weather Issues

When buying a home, it can be easy to overlook year-around weather issues. You may think you are purchasing a home in a sunny area, but come to find there is always a heavy cloud cover. This is just one of a number of weather issues to consider when selecting your dream home.

Clouds…Rain…Floods

If you must have a sun deck as part of your new home, you better make sure it is going to be sunny! Just because a general geographic area has a lot of sun doesn’t mean your home will. Things to look for include fog and heavy cloud cover for a home in a valley. If the home is located on the side of a hill or valley, make sure you know when it will get sun and shade. Temperatures can be radically different depending upon the amount of sun you get.

When it rains, it really pours! One potential nasty surprise for new homeowners can be the condition of a neighborhood after it rains. In West Kenya e.g. Budalangi, for instance, the total rainfall averages roughly heavy throughout the year. Despite this high total, there are certain beach communities that grind to a halt because of flooding issues. Even an inch of rain can flood streets to the point that you can’t drive at all. Make sure you stop by a gas station or local store to ask about flooding problems in the area.

I have been known to enjoy a good boating trip and perhaps you have as well. I am pretty sure neither of us would enjoy it in our house. Still, millions of people a year buy homes in flood plains without even knowing it. Eventually, this can lead to a disaster when heavy rains come and you find out the reason they call it a flood plain.

Unlike streets with bad drainage, floods are much more damaging. When a river overflows, flood levels are typically measured in feet. Can you image the effect on your home of a flood that reaches five feet in depth? Well, you probably always wanted to renovate the first floor of your home.

Mother Nature has a way of doing whatever she wants. Make sure you avoid her grumpy spells by looking into the effect of weather on your prospective dream home.




Wednesday 22 July 2015

Kenyan Property Real Estate: Knowing the Area to Buying



Once you reach an agreement on the purchase of a home, things start moving quickly. In the chaos, it is important to remember to budget for closing costs.

Loan Origination Fees and PMI

Closing costs are fees associated with miscellaneous events associated with a home purchase, things such as property inspections. Even if you are purchasing a home for the first time, you are probably aware there are closing costs that have to be paid. Rarely, however, are you aware of just home much and how fast the can accumulate. If you have not budgeted for them, they can put a kink in the closing or even cause you to lose the home. 

A couple of closing costs to keep in mind are origination fees for home loans and private mortgage insurance. The mortgage related costs are only a small part of the overall closing costs you can face, but deserve a closer look.

Origination fees for home loans can be a shock to first time buyers. Few realize they are going to have to pay such things. Origination fees are costs charged by a lender for services used to determine if the lender should give you a loan in the first place. 

For example, a lender will charge you fees for obtaining a copy of your credit report, having an appraisal done for the property. Infuriatingly, the lender will also charge you fees for processing the loan and preparing the loan documents. You may also have to pay points, which represent a percentage of the total loan, often one or two percent. On a $300,000 loan, the origination fees can quickly add up to thousands of dollars. 

Private mortgage insurance, often called PMI, can also be a nasty little surprise. The magic number when considering PMI is 20 percent. If you make a down payment on the home that is less than this amount, you are almost certainly going to have to pay PMI. PMI is simply insurance that protects the lender should you default on the loan. The cost can add up to hundreds of dollars, so make sure you know what is expected of you. 

Closing costs are aggravating, particularly when you feel like you are being nickel and domed to death. Budget for them up front, and you will feel less aggravation.


Monday 20 July 2015

Kenyan Property Investment-Budget for Closing Costs



Once you reach an agreement on the purchase of a home, things start moving quickly. In the chaos, it is important to remember to budget for closing costs.

Loan Origination Fees and PMI

Closing costs are fees associated with miscellaneous events associated with a home purchase, things such as property inspections. Even if you are purchasing a home for the first time, you are probably aware there are closing costs that have to be paid. Rarely, however, are you aware of just home much and how fast the can accumulate. If you have not budgeted for them, they can put a kink in the closing or even cause you to lose the home. 

A couple of closing costs to keep in mind are origination fees for home loans and private mortgage insurance. The mortgage related costs are only a small part of the overall closing costs you can face, but deserve a closer look.

Origination fees for home loans can be a shock to first time buyers. Few realize they are going to have to pay such things. Origination fees are costs charged by a lender for services used to determine if the lender should give you a loan in the first place. 

For example, a lender will charge you fees for obtaining a copy of your credit report, having an appraisal done for the property. Infuriatingly, the lender will also charge you fees for processing the loan and preparing the loan documents. You may also have to pay points, which represent a percentage of the total loan, often one or two percent. On a $300,000 loan, the origination fees can quickly add up to thousands of dollars. 

Private mortgage insurance, often called PMI, can also be a nasty little surprise. The magic number when considering PMI is 20 percent. If you make a down payment on the home that is less than this amount, you are almost certainly going to have to pay PMI. PMI is simply insurance that protects the lender should you default on the loan. The cost can add up to hundreds of dollars, so make sure you know what is expected of you. 

Closing costs are aggravating, particularly when you feel like you are being nickel and dimed to death. Budget for them up front, and you will feel less aggravation.

Wednesday 15 July 2015

Kenyan Properties to buy - Finding a Fixer Upper



With the housing market becoming more expensive, buyers must look for the best way to find an affordable home. A fixer upper is a great way to affordably buy your first home in the Diani, Mombasa housing market. Buying one away from the city is even more affordable since it is not a candidate for a teardown where the land is the most valuable asset.

If you are in the market for a new home, but do not want to spend tons of money or just can’t afford today’s rising home costs, you may want to look into buying a fixer upper.  By purchasing a home in less than perfect condition you will be able to save yourself a lot of money.  If this sounds like something you are interested in, you are in luck.  There are thousands of homes available all over Diani waiting to be restored to beauty.  All you need to know is where to look. 

Listed below are the three most common ways that you can find a fixer upper in your area.

1. The most traditional way of finding a fixer home is simply getting in your car and scouring the neighborhoods that interest you.  By doing this you may not come across a lot of properties, but you may find the one that really catches your eye.  If you do happen to find a fixer upper this way, make sure that you take down the address as well as the name and number of the real estate agent on the sign.  

2. Finding a home to restore can also be done by searching the classified ads.  This is also a more traditional method of finding a new home.  The best thing about searching for a fixer upper this way is that you will be able to search by location and price without ever having to leave home. 

3. And of course you can search for a fixer upper online.  There are two ways to do this:  you can either search a site that offers listings from a variety of different real estate agencies, or you can visit the site of each independent agency.  Either way, you will be able to find a lot of details on any lower priced homes that may catch your eye.  These sites offer information on pricing, as well as pictures of both the exterior and interior when available.  By searching for a fixer upper online, you will ensure yourself of coming across the largest number of Kenya properties to buy are available in your area, and save yourself some time too!

However, it also pays to use an experienced realtor that can spot major issues, advise you on what extra inspections you might want to consider and also will have a good contact list for reliable contractors and others you may want to consult with.

Overall, finding a fixer upper can be done in a number of different ways. Instead of overlooking this option, why not give it a try?  It does not cost anything to look, and you may find out that a fixer upper is your ticket into the housing market or a way to gain a dream home. 



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