Home buyers go for unfinished houses
As the real estate industry thrives a decade later, many Nairobians are looking forward to owning a house.
And developers are bending over backwards to accommodate clients by coming up with better products and incentives.
While some developers prefer to complete their projects first before putting them up for sale, others are increasingly selling off pre-construction or off-plan properties.
But what makes such a property attractive to home buyers and speculators alike?
“At the moment I’m seeking a developer who will give me the best deal,” said Moses Kimani.
Kimani, who is looking forward to buying a house in a gated community, hopes to get a developer who will involve him during construction. He wants to buy an off-plan property.
“A complete house is usually the best option as you are buying what you can see. However, this comes at a premium price and that is why a considerable number of buyers are now opting for the off-plan purchase as they get the property at its entry-level pricing which is usually 30 to 50 per cent lower than the final cost when the house is ready,” said Gilbert Kibe, managing director Bahati Ridge Development Ltd.
Off-plan property enables one to make inputs, suggestions and preferences in interiors.
“A buyer gets to choose the best unit in terms of positioning within the development. The units also have the lowest entry level price with a flexible paying method. This makes them affordable to the middle income earners,” said Kibe.
The buyers are given a grace period for payment and in some instances, developers link them with financial institutions.
“At times, the prices are fixed but some developers welcome negotiations,” said Harun Nyamboki, director Moke Gardens.
“In almost all cases, payment is made in instalments,” he added.
This has resulted in an increase in demand for off-shelf plans, especially for people starting out in life.
However, this kind of house buying is yet to gain traction locally.
Kibe says 70 per cent of houses are purchased when complete but risk-takers benefit the most from the low asking price that normally finances construction.
Though an off-plan deal sounds sweet, home buyers need to be wary when dealing with developers. They should involve legal experts when making a purchase.
However credible a developer may seem, it is important to do things diligently and make all agreements through a legal process.