Over the past Five years, the demand for land in Nanyuki has been on the rising trend with the demand for mostly land for sale being on the higher side as compared to land for lease. This is due to the availability of large tracts of land for sale at relatively more affordable prices compared to other parts of the country. There has been demand for land for lease mostly in the Nanyuki CBD Area for purposes of development of nightclubs, schools, hospitals, car washes and hotels.
The decision to lease or buy land is largely dependent on a number of factors. Some of this factors are:
- Cost of land in an area – Land prices in Nanyuki CBD mostly range between kes.20M to 60M for 50*100 plots which we can all agree is not a price that a majority of the kenyan population can afford. Most people looking into setting up shop, would rather lease land in town which is much more affordable and buy land in the interior parts of the town for investment purposes.
- Use of the Land – Most people who are looking into getting into farming in Nanyuki whether small or large scale opt to lease land as most of the fertile parts of the town are not up for sale since most are either owned by the Government or near a river hence the interested candidates have little choice but to lease from the owners. For most people looking into building their homes or Holiday homes are opting to buy the land since their intent is to use the land for a long time.
- Location of the land – A good example is real estate companies such as Mt. Kenya WildLife Estate located on the Nanyuki-Rumuruti road inside Ol Pejeta Conservancy. The Estate comprises 66 holiday Homes located in the middle of a Game Park. The home owners own the homes but the land is leased for the Conservancy. The buyers wanted to enjoy the access to view wildlife from their balconies and the only way to do so was to agree
to lease the areas the house sits on but own the land .
- For investors looking to dive into land banking,the only option is to buy land and either subdivide for sale with a markup or keep the land for sale later once the prices have gone up. Ricco Homes and Developers Limited offers a wide variety of options in this line ranging from one to twenty acres of land in Ereri thats located just 23km from Nanyuki town or affordable 50*100 plots not more than 28kms from Nanyuki CBD with their prices ranging between Kes.100,000 and kes.300,000 on average.
- Whether you opt to lease or buy land in Nanyuki, Each option has its advantages and disadvantages. Let’s take a closer look at what they are for each option.
ADVANTAGES OF LEASING LAND IN NANYUKI
- Lower price– It’s cheaper to lease land in Town as compared to buying. On average leasing land in Nanyuki Town ranges between kes.50,000-Kes.400,000 depending on size and location in town,while buying woud b as high as kes.60M for a 50* 100 plot.
- Low or no property taxes – Since you don’t own the land, you will save when it comes to property taxes. You likely will pay some local property fees, but someareas restrict the amount that land lease fees can increase each year.
- Property maintenance -Most businesses with a land lease arrangement typically don’t pay fees to the Owners for handling of lawn and garden maintenance, garbage collection, and other repairs and ongoing maintenance.
- Amenities – Land leases in nanyuki Town where there are amenities already in place are not charged an extra monthly fee especially for properties that were already developed such as perimeter walls with electric fences, security guards and lawn management fees.
DISADVANTAGES OF LEASING LAND
- Reduced flexibility – One may encounter obstacles in using or developing the property if the landlord requires approval before they make any changes. One may therefore experience more restrictions than they would if they had purchased the property.
- Higher costs – Costs that come along with the leasing process may end up higher than the costs of just purchasing a property outright. One should be prepared for various costs adding up, which can get expensive, especially when waiting for approval for certain projects. Costs can include improvements and permits.
- Loss of developed property on the leased land – Once one leases land they will probably do some construction of either offices or rooms which once the lease tenure ends, the lessee has only two options, to demolish the structures or leave them on the land.
ADVANTAGES OF OWNING LAND
- Pride of Ownership – The first advantage is what I call pride of ownership. It’s that empowerment of being able to say, ‘It’s mine, I own it!.
- Owning gives you more control – Owning provides other advantages as well. When you have leased land, your use and enjoyment is subject to the lessor. When you own the land, you have control over how you want to build on the land or on when to sell it. One of the biggest benefits of buying land is that you can customize it for any use in the future. You can use it for poultry farming, agriculture, or construct a house.
- You can pass it down to heirs – When they own the land, you know that your children and grandchildren will have the same opportunity to have a place where they can go and experience the rural outdoor life” for generations to come.
- Higher resale value – The rate of appreciation on land is higher thanconstructed properties as land remains in the same condition barring natural impact caused due to weather or erosion. Also, a limited supply of land ensures higher competition in the market, ushering in increased price points.
DISADVANTAGES OF OWNING LAND
- Paucity of land – Demand-supply dynamics is a major concern. While demand for land is perpetually growing, supply is recording a downtrend. With ever-increasing population and infrastructure projects in full swing, land availability has seen a sharp fall especially within Nanyuki CBD. It is only in the Nanyuki outskirts that ensure availability of land parcels.
- Encroachments – Plots are susceptible to encroachments especially in the interior parts of Nanyuki by herders
looking for greener pastures for their livestock. Several cases of illegal confiscation of land have been reported across the county.Although you can submit a report and hire a solicitor, it involves a legal cost that may leave a big dent in your pocket. If you are buying agricultural land, it is important to check the ownership details for the last 10 years. Agricultural land can be taken by the government for infrastructure development or
- Illiquid asset – Reselling a plot might be complicated. As land value appreciates at a faster and higher rate,
finding a buyer willing to pay a hiked price could be a challenge. Compared to other financial products, such as cars, mutual funds, or even recurring deposits, land cannot be immediately disposed of when you need to encash it. At times, it may take years to find a suitable buyer, defying the actual investment purpose.
Click Here to View Properties On Sale
Invest with us
Ricco Homes & Developers Ltd
Nairobi Office: Moran Lounge , Off Kiambu Rd, Nairobi
Nanyuki Office: Cedar Mall , 1st Floor, Laikipia Road
Tel: +254 705 999137 / +254 705 999139
Email: email@example.com / firstname.lastname@example.org