Who wouldn’t love to have their dream home in Kenya? Well, we all love stability, and one way to be in a state is to have a place to call home. But what is the starting point for buying a home in Kenya? What do you need to do to buy your first home successfully?Before buying a home, it’s crucial to understand the process and the best starting point for doing so. This blog explains how you should prepare before buying your first home in Kenya. Making the right choices when dealing with a big transaction is important.We aim to help homebuyers and investors to make excellent decisions when buying and selling property in Kenya. We have adequate knowledge of the history and trending issues in the Kenyan property market.Therefore, be among the first to receive our timely updates on the current market in Kenya. You can also check our property listings to browse properties in your preferred location.

1. Overview of the Kenyan Housing Market 

The Kenyan housing market is dynamic and vibrant, offering a wide range of housing options for buyers of all budgets. The Kenyan property market has many players, including homebuyers, commercial property investors, and the government’s commitment to providing affordable housing.

The availability of mortgages and various housing options has made the Kenyan housing market an attractive investment destination. Kenya has a wide range of housing options, from luxurious homes to affordable, basic housing.

The Kenyan housing market is an excellent starting point for anyone looking to buy their first home, whether you are in the diaspora or not.

2. Types of Houses

The Kenyan property market has various types of houses you can choose from when buying your first home.. 

If you prefer the convenience and security of a gated community, there are options, such as maisonettes, bungalows, apartments, etc. if you need a home in a rural area with huge spaces, there are options, such as villas, estate homes, and ranches.

There are beachfront homes and cottages for those seeking a more relaxed lifestyle along the coastal regions of Kenya. Regardless of the type of home you choose, Kenya has plenty of options to suit all needs and budgets.

3. Average Prices

Budget is the main determinant of the type of house you will buy in Kenya. Some houses are cheap, while others are very expensive and need a big mortgage loan to acquire one. 

The average price for buying a home in Kenya varies depending on the property’s location, size, and condition. Generally, the price starts from Ksh 3 million going upwards.

Location determines much about the cost of a home. For instance, buying a home in Nairobi and its metropolitan area will be more expensive than buying in a rural area. 

Additionally, the cost of land, building materials, and labor can also influence the cost of buying a home. 

You can compare the cost of buying a complete house and the one of buying land and building a home. Depending on the location and commitment, you can choose an option that works best for you.

4. Location Considerations 

When buying your first home in Kenya, it is vital to consider the property’s location. Location plays a significant role in the success of your future home, as it can affect factors such as access to amenities, security, transportation, and the overall quality of life.

Researching the area and local amenities, such as schools, hospitals, supermarkets, and public transportation, is important. Additionally, you should take into account the safety of the area and the potential for future growth.

You should also consider the cost of living in the area because it may affect the budget for your home. 

If you choose a location with potential future growth, you can easily start an Airbnb business if you need some income from your house.

5. Financing Options 

When buying your first home in Kenya, you should start by thinking of the financing options you have.  You can start by saving enough money for a downpayment, and if you are able, you can save money for the entire project.

a. Personal Savings

Having some personal savings is an important starting point for buying your first home in Kenya. It is advisable to start saving as early as possible to build a good base for your future home-buying needs. Even if you get a mortgage loan, you will need a downpayment of at least 5% of the home buying price before getting the loan.

Most banks in Kenya offer you a chance to save money automatically. The advantage of having a personal savings kit is that it offers a safe and secure place to store your money and watch it grow.

Additionally, having a personal savings account also offers you an excellent opportunity to manage your finances better and be prepared for any financial emergencies. 

b. Mortgages

A  mortgage is a loan specifically that helps home buyers in Kenya finance their first home purchase. Banks provide a long-term loan to cover a portion of the home’s purchase price. 

Most banks in Kenya ask for at least 5% of the home price as the downpayment for the loan. Some other banks can help you buy land and build your dream home.

Mortgages also cover the expenses associated with owning a home, such as taxes and insurance. Since saving millions of money to buy a home can be so challenging, it’s easier to take a mortgage loan to own a home faster.

However, you should be sure of your income sources to repay the mortgage because failure to repay the loan means the lender will repossess your home. Actually, the home stands as the security of the mortgage loan.

Conclusion

The starting point of buying your first home in Kenya requires dedication to research the Kenyan property market. The only way you can get the best deal is by doing thorough research on anything you plan to do when buying your first home.

However, real estate agents can ease your work in finding the best locations for your new home in Kenya. They can also link you with professionals like property lawyers and mortgage lenders. Find your preferred real estate agent today on our site.

Frequently Asked Questions

1. What is the first step in buying a home in Kenya?

Once the idea of buying a home clicks your mind, you should research to know the current market price ranges for the home you want to buy. After having a figure in mind, you should find ways to save money for a downpayment if you are taking a mortgage loan. If you are buying cash, you should increase your income streams to save enough money to buy your dream home. You should also know about some other hidden costs to save money.

2. What is the most important part of buying a home in Kenya?

When buying your first home, consider choosing the best location with high future potential growth. In addition, your security should come first when choosing your dream home. In addition, ensure to check your home for any damages before you commit yourself to buy the one.

3. How much should I have before buying a home in Kenya?

You should save around 25% of the home price. This amount will help you pay for a downpayment and cater for any other expenses like moving costs.