With affordable home loans now available at single digit interest rates of 9.5 % per annum, buying a property in Kenya is now cheaper than financing a car! Yes, that’s right. It’s great to have those wheels, but what if we told you that investing in real estate could be your gateway to financial freedom?
Car loans come with higher interest rates, currently at an average of 21% per annum. Furthermore, the value of a car begins to depreciate the moment you drive off the showroom. In contrast, a real estate investment is an appreciating asset that increases in value overtime through capital appreciation - something a car cannot do!
If you can afford a car, you can afford a house!
Let’s explore some property options that you could purchase at a price comparable to that of a car;
| Price (Kshs ) |
Deposit 20 % (Kshs) |
Monthly Repayments - 5 years (Kshs) | Expected Net Income (Kshs) | |
|
|
2.53 M | 506,000 | 42,508 | 20,000 |
| Volvo v60 | 2.6 M | 520,000 | 70,399 | 0 |
One Bedroom Apartment In Rongai
| Price (Kshs ) |
Deposit 20 % (Kshs) |
Monthly Repayments - 5 years (Kshs) | Expected Net Income (Kshs) | |
| Rongai One Bedroom | 3.46 M | 692,000 | 58,134 | 19,500 |
| Mazda CX - 5 | 3.5 M | 700,000 | 94,687 | 0 |
One Bedroom Apartment In Westlands
| Price (Kshs ) |
Deposit 20 % (Kshs) |
Monthly Repayments - 5 years (Kshs) | Expected Net Income (Kshs) | |
| Westlands One Bedroom | 7.8 M | 1.56 M | 131,052 | 65,000 |
| Toyota Prado | 7.7 M | 1.54 M | 208,311 | 0 |
One Bedroom Apartment In Westlands
| Price (Kshs ) |
Deposit 20 % (Kshs) |
Monthly Repayments - 5 years (Kshs) | Expected Net Income (Kshs) | |
| Westlands One Bedroom | 9.0 M | 1.8 M | 151,214 | 85,000 |
| Landrover Discovery | 9.5 M | 1.9 M | 257,007 | 0 |
It’s important to note that affordable home loans are offered at an average FIXED interest rate of 9.5% per annum, while car loans come with a much higher VARIABLE interest rate currently 21% per annum. Additionally, home loans offer extended payment plans of up to 25 years, providing you with more flexibility and affordability on your monthly repayment. The best part is that you can complete your repayment in 5 years if you prefer a shorter term, without any penalty fees.
Start Your Property Ownership Journey Today!
Buying a property with an affordable home loan could be the smartest decision you make this year. Invest in an appreciating asset that gives you an opportunity to convert your monthly rent into ownership thereby increasing your net worth.
Visit Our Website and use our affordable home loan calculator to get an estimate of how much you can qualify to borrow based on your monthly income. Get matched with vetted properties within your affordability range, as well as the right property agent and financial partner.
For more information on building wealth through affordable real estate investment, reach out to us on 0743466209 / 0757488833, or email to info@rentscore.africa.