SPECULATION: HOW TO GAIN PROFIT IN REAL ESTATE
We can all agree that as an investor, the aim of putting money in any business venture is to eventually gain profit.
In 2022, among the top performing and successful ventures, real estate ranks above them all. This is majorly attributed to the high demand in property ownership be it plots, land, a house or rental units. When it comes to land, profit is gained after land is bought, value added and sold later after a definite duration at a higher price.
Pro Fact: Profits gained from land are so huge ranging from thousands to millions per sale. This calls for investors willing to reap big to invest in the industry. In this blog, we crack down how to gain huge profit through selling land after adding value to it (Land Speculation)
Also read – How to Add Value To Your Plot
What Is Land Speculation?
It is the process of purchasing land, adding value to it over a period of time then reselling at a higher price than you bought it.
Example; Genesis Phase 2 plots in Thigio were selling at Ksh 799,000 by March 2022. Upon completion the owners built on the land whilst others laid farming
and greenhouse activities. The plots that were bought for speculation in the same area currently cost upto 1 million Kenyan shillings in less than 6 months. This was due to the rapid growth in the neighbourhood and also tarmacking of the access roads passing by. The land investors will now gain a profit of over Ksh 200,000 when selling the land.
What Land Is Best Suitable For Speculation?
Land in a rapidly developing area with an appreciation rate of over 50% per year. Land buyers are attracted by land that favours them in an all rounded way be it from amenities, social facilities, ideal location, land attributes i.e red soil etc. Such lands are easily available for purchase in developing areas. Note that land in developing areas is way far off from under developed areas; some developing areas are way tarmacked to a certain point or fully murram while under developed areas have unusable roads. This calls for you to invest in land in a developing area such that when it gets done, you will resell the land at higher prices.
Pro Tip: The rate at which an area is developing at determines how soon and high you can resell the land. Therefore it is wise to buy land for speculation in
a rapid developing area like Kikuyu which is at 50% plus per annum.
What factors Define The Best Land Suitable For Speculation?
1. The Land Location
It should be within a Metropolis area i.e. Nairobi Metropolis area which covers even Kikuyu with our profitable plots for sale. The location should be accessible from the main roads with direct access roads.
Note; Accessibility in areas with land for speculation mostly has murram not tarmac roads. This creates huge room for profitability when the roads are afterwards tarmacked and the plots can be sold then to buyers interested in the tarmac. The land should be situated in a safe area whereby the clients will be
comfortable visiting and buying for their specific needs.
2. Nearby Reliable Suitable Amenities
Schools, hospitals and religious facilities act significantly for land buyers who want to build their residential homes. Hence ensure the land you intend to purchase
is located near these amenities. More importantly, consider purchasing land in areas that have electricity and fresh water supply throughout i.e. Kikuyu.
3. Super Affordable Land Pricing.
The secret to successful land speculation is buying land in a developing areas unlike an already developed area. Land in these areas is relatively cheap and
offers a huge profit bracket after the developments are completed i.e Tarmacking of Roads.
After purchasing the land, the first stage of your profitable business venture is achieved. This marks the second stage which is longer but eventually satisfactory as you count in the profits after selling the land.
1. Utilize the stronghold of your land i.e type of soil,area climate,drainage After the purchase and before resell to a new buyer you should introduce activities
that will ensure your land is not idle during the speculation duration. It is majorly accomplished by utilizing your land as per its ability to add its value daily.
Example: Our plots in Thigio going for 550K have red soils and the climate is favorable for both crop and livestock farming. This is an opportunity to setup a farm on your land meanwhile before it is resold to a new owner.
Any ready buyer interested in land for farming activities will definitely buy from you simply because you showcased your land as the most suitable product for them.
Here are other ways to utilize the strongholds of your land making it more profitable when reselling later.
2. Market widely the plots for sale. Once you are ready and fully satisfied with the appreciation your land has gained so far, the next step is to open it for the market. Instantly share a word with the community or rather a real estate company to resell the land on your behalf. Luckily at AMCCO Properties Limited, we simplify the sale by reselling land but strictly from clients who had bought from us. Once you have buyers knocking your door to buy the valuable land, this marks the end stage of the speculation. It is followed by transferring the Title deed to the new owner after their payment. As any investor would do, reconsolidate the profits and opt to undergo the venture again. In due time as land appreciates all over Kenya, then your pockets will broaden.
That’s how most real estate investors have turned into successful entrepreneurs with simple steps over short durations. You too can join the league by investing today. In need of Land for Speculation? Come have a look at Olive Gardens in Thigio selling at 550K assuring 50% profits back after 12 months.
Pewa Mbuzi Na Cash Deal! Book a Free Site Visit or Call 0701 293 199 or email us at amccoproperties@gmail.com.
