Last Updated on October 27, 2022 by tabraiz579
Do you think it is about time you owned a house? Buying a home requires a significant financial commitment. You’ll have to raise enough deposit and meet mortgage payments, not to mention you are responsible for repairs and maintenance. Finding a dream house is not a hassle, especially as you can explore an extensive pool of listings in Kenya. With subsidies and other incentives available, you can find a house within your budget. Owning a home is a huge move, but it is worth the commitment, if not more. You’ll realize many advantages, among the most notable including:
Build equity
With every shilling you pay, you build equity; what’s more, as the house’s value appreciates, which is a lot more possible than depreciating, your equity increases. Check listings in Kenya; you’ll notice an upward trajectory in house prices, meaning your investment will fetch you more in the next few years. Such equity gives you financial security. You can, for example, take a loan on such equity to finance some aspects of your life, ranging from property improvement, buying a car, or taking that much overdue vacation. Your financial commitment will pay off through the growing equity, a significant long-term advantage you can’t realize with a lease or rental.
Security
Owning a house means you have the autonomy of decision-making. For example, the landlord can decide they aren’t interested in current tenants; this means you have to move, an inconvenience that can also be costly. Buying a house offers security, an overlooked peace of mind that makes your life more manageable.
Control
How much do you like the current paint? Owning a house gives you more control, making it easier to develop a dream home. You can renovate without waiting for approvals, as with rentals. A new wallpaper, paint for your kid’s bedroom, bathroom flooring, kitchen cabinets; you can do lots of renovation to ensure that the house feels like a home. The best part is that such improvements also increase the house’s value, further building your equity.
Stability
While you are responsible for keeping the house in top shape, owning is more stable than renting. You’ll incur more expenses on some windows, such as dealing with many repairs and maintenance. However, you’ll only need to finance the mortgage in most months. Such financial stability makes a house a worthy investment. You won’t be worried about rental hikes that can turn your financial situation inside out. The stable financial consideration, coupled with growing equity, offers a sense of security in the long run.
Tax benefits
The cost of homeownership, including taxes, could be the biggest obstacle keeping you from buying your dream house. Here is the good news; the Kenya government offers many tax incentives to home buyers. The shelter is a basic need, hence the incentives to help people afford houses. For instance, first-time homebuyers opting for the affordable housing scheme are exempted from stamp duty. Other incentives such as no tax on capital gains on certain property limits and deductions on the mortgage, to mention a few, save you more money. You might not significantly reduce your tax burden, but the incentives make it easier to find, finance, and own a house in Kenya.
Buying a house in Kenya is a significant step with many advantages. Here is an overlooked bonus advantage; money-saving. How disciplined are you in financial matters? Renting, on face value, is cheaper. Nonetheless, buying a house is a more financial-sound strategy. The monthly mortgage payment includes interest and principal, and while it might seem expensive, it helps you save. You’ll be more disciplined as you meet the set monthly payments since you don’t want to lose the house. After a few years, you’ll be done with the mortgage payments, giving full ownership of the place, which you’ll enjoy in peace or sell at a profit.
Once you have finished estimating construction costs, you’ll have to raise enough deposit, and meet mortgage payments, not to mention you are responsible for repairs and maintenance.
Read more: How Would You Go to Purchase a House?
