For Kenyan nationals abroad or foreign investors, securing off-plan apartments in Kenya is fully achievable with local mortgage financing. For Kenyan diaspora investment, this means you can leverage foreign earnings to qualify for a Kenyan home loan. Local banks now structure mortgage financing in Kenya to include diaspora clients – even if your salary is in dollars or euros, lenders will consider it when pre-approving a loan. In practice, buyers pay an upfront deposit (typically around 20–30% of the purchase price) upon signing the sales agreement, and the bank finances the balance upon completion of the project. After approval, the bank issues a loan offer letter confirming the amount. You hold this offer letter until the project is complete, ensuring the funds are reserved for your off-plan purchase.

Off-Plan Mortgage Requirements and Process

• Long Terms: Kenyan mortgages often allow repayment over 20–25 years, which lowers monthly payments for diaspora buyers. This extended period lets the property appreciate in value as you pay it off.
• Deposit: Banks typically require a down payment of about 20–30%. This is paid when signing the agreement for the off-plan apartment.
• Documentation: You’ll need to provide standard paperwork – Kenyan ID or passport, KRA PIN, credit report, and income proof (bank statements, payslips or audited accounts). Banks accept foreign income statements, so earning abroad is fine.
• Loan Offer Letter: Once your application is vetted, the bank issues a formal offer letter stating the approved loan amount. This letter is held until construction is finished and then the bank disburses the funds against your property.

One key advantage is the long repayment period. Banks commonly allow loans up to 25 years, meaning your monthly repayments stay manageable while your equity grows. This lets off-plan investors lock in today’s price and pay it off gradually as the project completes. Over time the property value often rises, so even as you repay, your investment appreciates.

Mortgage Options for Foreign Investors

Non-resident foreigners can also pursue Kenyan mortgages, but with stricter criteria. Some Kenyan banks offer real estate financing to foreign investors, meaning real estate for foreign investors in Kenya can come with mortgage options. However, lenders demand a stronger down payment (often higher than 30%) and robust proof of income. You may need a local co-signer or additional collateral. International banks with Kenyan branches or joint ventures with local partners can also facilitate financing. In all cases, expect anti-money laundering checks and a thorough evaluation of the investment plan.

Getting Started – Contact Us

Ready to begin? Contact our team today to be connected with a local bank official. We’ll guide you through the mortgage pre-approval process, helping you gather the required documents and understand each step. With our assistance, you can navigate the local lending landscape confidently and secure financing for your off-plan apartment in Kenya.

Contact us now +254729678773 to start your journey toward home ownership with a Kenyan mortgage from abroad!

The post CAN FINANCING BE DONE ON AN OFF-PLAN PROJECT WITH SOURCE OF INCOME FROM ANOTHER COUNTRY? first appeared on Musilli Homes and is written by Musilli Homes.

Buying a house as a foreigner in Kenya

Buying a house as a foreigner in Kenya involves several steps and considerations. Here’s a general process to guide you through:

1. Research and Due Diligence

• Understand the Market: Start by researching the Kenyan real estate market to identify the areas that are most appealing and suitable for your needs.
• Legal Restrictions: Be aware of any legal restrictions for foreigners owning property in Kenya. Typically, foreigners can own property in Kenya on a leasehold basis, with leases available for terms of up to 99 years.

2. Find a Property

• Hire a Real Estate Agent: It’s advisable to work with a reputable real estate agent familiar with working with foreigners. They can provide valuable insights into the market, help you find properties that meet your criteria, and guide you through the buying process.
• Property Viewing: Schedule viewings for properties that interest you. Take the time to visit and inspect each property thoroughly.

3. Legal Process

• Hire a Lawyer: Engage a Kenyan lawyer to help with the legal aspects of the purchase. They will conduct a title search to verify the seller’s ownership and ensure there are no encumbrances on the property.
• Sales Agreement: Once you’ve chosen a property, your lawyer will help draft a sales agreement, which both the buyer and seller will sign. This agreement outlines the terms of the sale, including the price, payment schedule, and any other conditions.

4. Financial Arrangements

• Opening a Bank Account: If not already done, you may need to open a bank account in Kenya for the transaction.
• Payment: Follow the payment terms agreed upon in the sales agreement. This often involves paying a deposit to secure the property, followed by the balance upon completion of the sale.

5. Government Procedures

• Stamp Duty and Transfer: Your lawyer will assist with paying stamp duty, which is a tax on the transfer of property. After payment, the property can be officially transferred to your name.
• Registration: The final step is to register the property in your name at the Kenyan Land Registry. Your lawyer will handle this process, ensuring that you receive the title deed or lease certificate.

6. Post-Purchase

• Utilities and Insurance: Once you own the property, set up utilities in your name and consider purchasing home insurance.

Tips:

• Due Diligence: Thorough due diligence is crucial. Ensure the property’s legal status is clear and that there are no hidden charges or disputes.
• Professional Advice: Seek advice from professionals at every step of the process. This includes real estate agents, lawyers, and financial advisors familiar with Kenyan property law and taxation.
• Understand Costs: Be aware of all costs involved, including legal fees, agent fees, stamp duty, and any maintenance charges if buying in a managed estate or apartment complex.

This process can vary based on specific circumstances and the type of property you’re purchasing, so it’s important to consult with professionals who have current and comprehensive knowledge of Kenyan real estate laws and practices.

Article By Francis Musili.

The post Buying a house as a foreigner in Kenya first appeared on Musilli Homes and is written by Musilli Homes.

Reasons Why you Should Invest in Riverside

Investing in Riverside Drive, located just 4.8km away from Nairobi’s Central Business District (CBD) and hosting several embassies, presents a compelling opportunity for investors for several reasons:

1. Strategic Location: Its proximity to the CBD ensures that properties in Riverside Drive are in high demand, especially among professionals working in the city center. This strategic location combines the convenience of city living with the tranquility and exclusivity offered by Riverside, making it an attractive locale for tenants.
2. High Rental Income: The rental income potential is significant, with 1-bedroom apartments fetching upwards of 80,000 KES, 2-bedroom units at 120,000 KES, and 3-bedroom units starting from 150,000 KES per month. This high rental yield makes investments in Riverside Drive financially appealing, offering consistent and lucrative returns.
3. Diplomatic Presence: The presence of multiple embassies in the area adds a layer of security and prestige, making it a preferred residential area for diplomats, expatriates, and high-net-worth individuals. This demographic is often willing to pay a premium for housing, further enhancing the investment appeal.
4. Capital Appreciation: Properties in prime locations like Riverside Drive typically enjoy robust capital appreciation over time. The area’s desirability, limited supply of land, and ongoing development projects contribute to increasing property values, ensuring that investors can benefit from both rental income and capital gains in the long term.
5. Quality of Life and Amenities: Riverside Drive offers a high quality of life with access to top-notch amenities, including shopping centers, international schools, healthcare facilities, and recreational spots. These features not only make it an attractive place to live but also contribute to maintaining high occupancy rates and the ability to command premium rents.

Investing in Riverside Drive represents a balanced mix of short-term income potential through rents and long-term capital growth, underpinned by the area’s strategic location, prestige, and the quality of life it offers to residents.

Article by : Francis Musili.

The post Why you Should Invest in Riverside first appeared on Musilli Homes and is written by Musilli Homes.