When you buy a home, you are making a long-term investment. For instance, having your place means you can stop paying rent and save on some utility bills.
It also gives you an asset to own, one that may help you make money later. Homeowners make money by leasing their houses or selling them. You should ensure that your property increases in value over time. Otherwise, your investment will result in a loss of money.
Many aspects affect the value of a house in Kenya. Some of them increase property value, like the growth of the real estate market. However, those listed here affect the cost of the house negatively.
- Urban blight
Kenya is facing urban blight as a risk to the value of an urban property. Cities like Nairobi struggle with poor planning due to lacking a master plan over several years. The result is congestion and poor infrastructure within an urban area, which causes a decline in the appeal of neighborhoods in the metropolitan area. Some of these places include Pipeline, found in the Eastlands area of Nairobi. The place suffers from poor planning and congestion.
- Deterioration over time
Some houses lose value over time because of years of wear and tear. The fixtures and furnishings are unused when people first move into a new home. As time moves, friction and pressure cause these surfaces to wear out. Fixtures also tend to lose their grip or deteriorate the more they are used. Unless you remodel or renovate your house, these items will not function at their optimum, and they might even be too broken to use.
- Poor home maintenance
Poor landscaping or lack of low maintenance can lead to a decline in the value of your home. Front lawn landscaping is one of the first things visitors see when looking at a house. The appearance of things like your front porch gives guests an idea of what to expect once they walk inside your home.
- Low-value location
Your house may also decline in value because of where you live. Some locations in Kenya are becoming increasingly attractive to property owners. In areas like Syokimau, the value of your home is likely to increase over time due to an uptick in demand. That explains the presence of many Syokimau real estate companies looking to move property there. However, other areas are challenging to live in. For example, some locations are arid and barely get any rainfall. Due to the potential for frequent drought, the place will remain unattractive to investors.
- Lack of security
Another factor resulting in property value decline is closely related to the value of particular locations: poor security. When people buy or build homes, they are looking for safe areas to live where their belongings will be safe. Poor security areas face steady property value declines due to low demand. Very few people would want to risk moving to an unsafe place and compromise their well-being.
- Economic shifts
Sometimes, the value of a home is affected by factors beyond the real estate industry. One key issue influencing the property market is economic growth or decline. More people have the financial capital to purchase homes when the market grows. As a result, property values increase. On the other hand, economic depressions or declines lead to a shortage of money which means fewer purchases and less demand. That often results in a decrease in home values.
Often, property owners are looking to gain some profit from their homes. They can sell the house or leverage it to get a loan. The house’s value will affect how much money you make, so it is essential to stay informed on the factors that make your home less valuable.