Residential rental property refers to homes that are purchased by an investor and inhabited by tenants on a lease or other type of rental agreement. It is property zoned specifically for living or dwelling for individuals or households; it may include standalone single-family dwellings to large, multi-unit apartment buildings.

Majority of Kenyan investors consider rental properties as a steady investment to build their income and generational wealth.

With a good understanding with most financial institutions, the model of rental properties has been heavily adopted and most financial institutions finance 80% of the construction costs and allow the investor to only come up with 20% of the total amount. 

Some of the advantages of owning rental properties include;

1. They include a wide variety of options, from bedsitters, single family homes, apartments, duplexes and so on. This ensures an investor has multiple options to go into when they begin their investment journey.
   
   

2. Tax benefits which allows you to deduct many expenses connected with rental property in the categories of:
   A} Ordinary and necessary expenses.
   
   B} Improvements
   
   C} Depreciation
   
   This means that you can deduct your insurance, interest on your mortgage, maintenance costs, and physical wear-and-tear on your property.

3. You’re assured of regular monthly income, which builds your cashflow and enables you to finance your other investments. Rent payments from tenants provide a consistent stream of income, allowing you to cover mortgage payments, property taxes, maintenance costs, and even turn a profit.
   
   
4. Appreciation over time. Real estate appreciates in value over time, especially in prime locations with growing demand. This can enable you to fund your investments or even grow your own real estate portfolio. 
   

5. It’s a hedge against inflation which erodes the purchasing power of money over time, but rental properties serve as a hedge against this financial risk. As inflation occurs, the value of real estate tends to increase, which means rental prices can be adjusted accordingly.

Compared to other investments rental properties offer a solid foundation when it comes to building your wealth with less risk.

Though it appeals to many investors it’s one of those investments that requires a long duration of time to get your original investment back, and most investors see it as a risk averse asset. 

It also requires a lot of capital and accurate market data to penetrate into the market, this can be a hindrance to many investors as they may be lacking the financial muscle to sustain such a project and also bring it to life.

When it comes to holiday homes, they offer more potential for Return on investment within a short duration of time. 

Some of the the advantages include;

1. High rental ioncome in peak season, and all year round, as you’re charging multiple guests based on the time of the season and duration of stay.

2. Long term profits as a destination property always increases in value over a short duration of time.

3. Access to other holiday homes.

4. Creating a healthier lifestyle as you’re not stuck to one location the entire time, and the vacation home can be used by your family in off peak seasons.

5. Has unique financing financing options which are better tailored than for rental properties. 

6. You’re taking on less risk compared to other real estate investments, as holiday homes are located in top tourist destinations so you can attract lots of guests, reach high occupancy rates, and charge a high nightly rate.

Holiday homes are a low barrier to entry in real estate investing and they allow you to build your cash flow in a short duration of time and enjoy stunning views while at it. 

In these changing times it is quite  prudent for investors to employ new strategies when it comes to building their financial muscle and income at the same time. 

As a company we will be hosting Hat’s ‘n’ Boots at our own investment project Bliss Water Park Naivasha, where we will be having our own property consultants who are ready to give you accurate market data on why you shouldn’t miss out a lifetime opportunity to grow your wealth. 

Contact us today at 0709 677 377, to begin your holiday home adventure.