Buying a home in Kenya during the election season is a difficult decision for many buyers. Additionally, this is one of the most exciting and stressful times of the year for the real estate sector. Political activities lead to economic uncertainties which translate into more indecisiveness from buyers. The months leading up to the election are filled with political ads, rallies, and debates. During this time, it can be hard to find a realtor who isn't in the loop when it comes to which candidates will win.
While the current political climate may be causing many to feel anxious and uncertain about buying a home, it is not the best time to be cautious. Equally important to note, is that this is the time when you should be jumping at any opportunity to secure a residence since developers are willing to negotiate better prices. We will dive into the factors to consider when buying a house during the election season.
Factors To Consider
- The current state of the economy
- The current political climate
- The state of the housing market
The current state of the economy
The current state of the Kenyan economy is healthy and robust, with steady economic growth and a high standard of living for most Kenyans. In the Africa Economic Outlook, growth is projected to decelerate to 5.9% in 2022 and 5.7% in 2023. The report states that growth-friendly structural reforms will provide a favourable environment for people who want to buy homes.
The current political climate.
First and foremost, the electioneering season is a time when political candidates go door-to-door, trying to convince you to vote for them. Besides that, it is also a time when interest rates on mortgages are at their lowest, making it cheaper to buy a home. This has made it a popular time to buy a home, especially in areas with a strong housing market where homes have been in high demand. The electioneering season only lasts a few months, so you have to act fast to buy a home.
If you’re looking to buy a home this election season, you might be worried that the political rhetoric will make it impossible to find a home within your budget. You may find that the current market will make it impossible to close on a home within your timeline.
The State of the Housing Market.
The Kenyan real estate market has grown exponentially over the last two decades. According to a report by Cytonn Investments, this growth is attributed to Infrastructural developments, stable GDP growth and Urbanization. Furthermore, the findings of this study indicate that These factors have led to the development of unique trends across the various real estate themes. Again, this is a result of investors seeking to gain high returns and buyers looking for aspirational lifestyles and the best amenities.
What Is A Good Home Deal This Election Season?
With so much information out there and so many offers on the table, it can be hard to figure out what the best deal is. There’s a lot to think about, so we’ve put together some helpful tips to consider before you make a property decision this season.
Cost: If you’re purchasing the home that will be your primary residence, you’ll want to factor in the cost of closing costs and the fees paid to a realtor and lawyer as you compare the costs of different neighborhoods.
Cost-effective Measures: A good home deal is one that gives investors value by purchasing apartments at a good price and selling them off later when the market rejuvenates from rental income.
In the upcoming election, home buyers will be faced with several good deals. Therefore, the best deals in this election season are those that pay less than it would cost to buy a home in an area with better schools and a larger income range (fewer wealthy people pay more for real estate).
Frequently Asked Questions:
1) Will the general election affect your ability to buy a home?
Yes, the election will have an impact on home buying in some areas.
2) Is it the right time to buy a home?
Even though prices have begun to creep up, you can still find good deals.
3) Will the Prices of Houses increase after the elections?
Yes. The prices will certainly go up. It is advisable to get a good home deal early.