INVESTING WITH A GROUP (CHAMA,SACCO) IN KENYA
Land prices are shooting high daily and the chances of owning land the more you procrastinate are reducing. The high land prices stand out as the most worrying factor to why most Kenyans haven’t invested in land yet.
Securing a plot that will house your family or hold your business in the future is the one of the best investments you will ever make.
Land, unlike other commodities only appreciates; meaning five years from now the land will be more valuable and can be sold to gain back profits.
Question: High land prices are alarming but should they stop you from investing for the future?
The big answer is No.
This is because the more you wait the more land becomes expensive but a decision made today will be value earned tomorrow.
This means even despite the high land prices, there is always a solution to beat them and you can
acquire land with whatever budget you have.
Investing in land as Chama
In 2023, we have made it easier and advantageous for couples and groups like chamas, saccos and merry go rounds to pool together funds and own a piece of land from our ongoing projects.
In a previous blog, we explained on how a couple can combine effort to acquire land at affordable rates as illustrated in this blog.
In this blog specifically we share information useful to groups that covers how they can own land today and beat the high market prices.
Similar to the Best financing options article, we answer the following questions that might be holding you back from making a wise move;
Who’s name will be on the Title Deed?
Who pays the land amount?
Who gets to receive and store the Title Deed?
Who will conduct the Site and Office Visits?
Role Delegation in Chama`s
Every group has members allocated various roles that enable smooth operations within it. This applies even when a group decides to purchase land.
The group should allocate individuals with roles like visiting and scouting the land, filling the forms, visiting the realtor’s office, delivering the payment etc.
The members might also prefer to conduct the whole processes as a group for the sake of accountability and witnessing as things happen.
It all depends on a particular group. So far we have interacted with numerous groups during site visits and most came as a full team to ensure everyone onboard saw and approved the land they were about to purchase.
It is thereafter that representatives come to our office to proceed on with the remaining
acquisition process including payment and filling transfer forms.
Land Search
In case there is a land search to be conducted, the representatives are also tasked with visiting and engaging the land registry to complete the process.
Groups that have invested with us have cited this as the efficient way in their operations while purchasing the land on behalf of the whole group.
Financing the Land Purchase
A popular benefit in belonging to a group is the fact that you can achieve more with less considering you actively participate.
Most groups operate by receiving contributions from members whereby the funds are used to acquire something that individuals wouldn’t have on their own.
Land pricing is on the high end with prices ranging from 500,000 Kenyan shillings and above in developed areas like Kikuyu.
Therefore individual members aiming to purchase land in the area but are constrained by their budgets can take advantage of their membership in a group.
He/she can either acquire a loan to fund their purchase or rather invite the whole group into investing alongside.
On the other end, groups are commonly associated with pooling resources together to fund one main purchase that will benefit the entire team.
It is super important to join a group that aims to buy land if you want land rather than joining random groups that won’t align with your aim and vision.
For land buyers with limited budgets, funding a land purchase is easier and way affordable done by a group considering all you contribute is a small portion of the total yet receive a significant share of the land purchased.
The members will contribute based on the size of land they want to purchase and also discuss the member shares based on the same amount.
Groups are also advantageous when it comes to receiving funds from banks and saccos for mega projects that an individual cannot afford to fund alone.
Most groups will often buy large parcels of land and distribute significantly among members or alternatively retain the land for future resell to gain profits back.
It all depends with the aim of the group towards investing in land.
At AMCCO Properties Limited, we accept purchases from groups and overtime we have nurtured a huge community of land buyers through group purchases.
Hence, we continue to embrace groups interested in purchasing land within the Nairobi Metropolis Area and assure to deliver the best value at affordable prices.
Title Deed Ownership
The fact that land is bought by over 2 people in a group is worrying in terms of who’s name is written on the Title Deed on behalf of the rest.
Good news is that this isn’t the case in 2023 as the land registry considers every member and has set aside solutions to eradicate future disputes when the Title Deed is issued.
Title deeds are subdivided according to the land shares or rather registered under the whole legal group name.
Even when members are huge in numbers to over 20 people, each will either receive an individual Title deed or still be named as an owner in the Mother Title Deed.
It all depends on the size of land purchased and also agreement between the group members.
More often huge parcels of land measured in acres are the ones subdivided to produce individual Title Deeds whilst the small plots are registered under the whole group since they can’t be subdivided further .
Title Deed Storage
The Title Deed storage is decided by the group members whereby it can be either in the bank, group headquarters or within a member’s custody.
In conclusion, 2023 has more to offer to all land investment groups in Kenya looking forward to purchasing land in a well developed area within Nairobi Metropolis area.
Therefore we invite all of your to our daily site visits from Monday to Sunday and get to experience the New Genesis Gardens phase 5 and Precious Gardens phase 1.
For more Investment land tips with you call us today via 0701 293 199 or email us at amccoproperties@gmail.com.
