The Big Question? Trust at the expense of Investment.

Why do a majority of Kenyan’s abroad trust their family members when it comes to purchasing land for them or constructing a house.

Most Kenyans move abroad for the chance of a better life, both career wise and personally, after a few years of adjusting in their new environment and growing their financial muscle they set out to improve the conditions back home.

Whether it’s building new homes for their parents, investing in real estate or supporting their siblings through school, they really take their time to give back to their family/ community in more ways than one.

Though their intentions mean well some family members take them for granted and con them out of their hard earned money, others send false updates of houses being constructed only for them to come back home to find a dilapidated mud hut.

Since most can’t involve the police they take the matter to social media hoping to advise others on better decisions to make when it comes to investing back home. 

But why do most Kenyans entrust their relatives instead of  financial institutions or real estate companies:

1. Family ties: People often have a higher level of trust in close family members compared to banks or unfamiliar real estate agents. They may feel more comfortable discussing their needs and concerns openly with a trusted family member.
2. Shared history and understanding: Family members may have a shared history with the property and understand its sentimental value. This can be particularly important when dealing with inherited property or family homes.
3. Avoiding fees: There’s a perception that family members might be willing to help out for free or with a lower fee than a bank or real estate professional.
4. Maintaining control: Some people may feel they have more control over the situation by dealing with a family member. They might worry that a bank or real estate firm might prioritize their own interests over the family’s wishes.
   
   
5. Direct communication: Direct communication with a trusted family member can feel easier than navigating bureaucratic processes or dealing with different points of contact at a bank or real estate firm.
6. Avoiding inheritance taxes: Some people might believe (mistakenly) that transferring property to family members can help them avoid inheritance taxes.

What are the downsides to this:

1. Conflict and strained relationships: Disagreements over property can easily lead to conflict within families.
2. Lack of expertise: Family members may not have the necessary knowledge or experience to handle complex financial or legal issues related to real estate.
3. Unclear expectations: Without clear agreements and communication, misunderstandings can arise regarding responsibilities, timelines, or financial arrangements.

Going the Extra Mile: How Finsco Africa Earns Your Confidence in Real Estate:

1. By focusing on transparency when dealing with clients our team ensures that our investors are fully aware of the fees, processes, and potential risks and benefits.
2. Promoting cultural sensitivity, by being mindful of cultural traditions regarding property ownership and inheritance, our values and mission ensure that each and every Kenyan regardless of tribe, age and gender and location, have an opportunity in investing and owning our prime properties.
   
3. We also developed relationships beyond transactions in ensuring their’s open communication between our clients and us, thus offering a comfortable setting for discussing their needs and concerns.
   
   
4. Partnering with National Bank of Kenya to offer affordable and flexible financing solutions to aspiring homeowners and investors who might be experiencing low cashflow.
5. Hiring and working with experienced professionals in the industry, who are quite knowledgeable in handling complex real estate matters and in providing educational resources and worlshops to empower clients.
6. Leveraging technology and communication channels to provide real-time updates on property status, finances, and market trends, empowering family members to make informed decisions together.
7. Being members of respected bodies such as KNCCI to safeguard our clients interests both locally and internationally.

In conclusion, while there are reasons why people might choose family over banks or real estate firms, it’s crucial to weigh the potential benefits against the risks.  Consulting with financial advisors and legal professionals can help ensure  a smooth and successful outcome for all parties involved.