A new land buying initiative has been launched to help individuals with less money acquire land by booking a price of a parcel of land and paying the booking fee through 10 monthly instalments and settling the balance at an agreed future date.
Through a land banking call option dubbed Chanuka Sasa, Land Layby Kenya Ltd hopes to revolutionalise the land and real estate sector by enabling individuals buy parcels of land in the outskirts of various cities and waiting until residential developers make them appreciate in value.
The initiative targets people who are keen to invest in land without securing bank loans and would like to have equity on their land by the time they own it.
“Land banking requires a lot of patience, knowledge and huge capital outlays. It is only hence a mantra of individuals with a lot of money. Land Layby Kenya Ltd is now changing this trend. We are bringing land banking to any Kenyan’s doorstep as long as they aspire to own land,” says Phyllis Gathura-Tole, the co-founder of Land Layby Kenya Ltd.
The initiative enables buyers to control a block of land without any holding costs, no interest repayments and no borrowing by booking a price of a parcel of land and paying for it after several years.
Chanuka has a potential of offering instant equity on expiry of the contract.
The buyer traditionally pays an option fee to reserve a particular property price over a particular time frame.
The fee compels the seller not only to hold the parcel of land for them but also to lock the purchase price (Strike Price).
Land Layby Kenya Ltd, which has been piloting the initiative in Kenya, released its first block of land (82 slots) in Isinya Kajiado last year, which sold out in less than eight weeks.
Mrs Tole notes sprawling by developers and infrastructure improvement by local counties has caused prices of land in upcoming towns to appreciate in value exponentially making it difficult for those with less money to own property.
“We are witnessing increase in population and consequently huge demand for land in upcoming towns as the suburbs closer to the city get congested,” says Tole.
Land Layby Kenya Limited plans to sell at least 100 products per month and currently has two Chanuka projects in Isinya and Namanga running concurrently with 244 plots available for sale. The company also has Hazina products in Kitengela, Kisaju and Ruiru.
”Whether you are a very aggressive investor seeking higher returns or conservative investor seeking to safe guard your investment, Land Layby Kenya Limited has products that match all risk profiles. Chanuka and Hazina are the popular low risk products, “says Tole.