Buying land on the outskirts of a big city and waiting until residential developers make it appreciate in value is a common practise worldwide. This strategy requires a lot of patience and knowledge. Since Capital requirements are huge, it is only practised by individuals with a lot of money.

dreamstime_xs_39427447You don’t have to worry; we have done it for you and better still, we will pass on some of the equity created.  Whereas Land Banking is a strategy used by many professional property developers, we now bring Land banking to your door step, a great strategy. Thanks to Land Layby Kenya Ltd, the strategy is now available for smaller property developers too.

How will we do this for you?

1. Timing:

Release of the subdivisions titles to the public has been meticulously blended with infrastructural development as well as use of complex sophisticated criteria involving several variable factors. What does this mean to you? You do not have to wait very long to generate instant equity on your purchase [sociallocker]. It is critical to continually improve and expand our understanding of land values. Factors influencing land values guide the formation of our towns [sociallocker] as well as the evolution of the urban economy; generating revenue for County governance and creating immense wealth to the seasoned investor. These influences of economic, social, political, religious and legal forces are at all times reflected in land values.

LVC Nov 15Land Layby Kenya Ltd determines product prices, identifies potential land banking opportunities ensuring that these investments have a potential to offer sound returns to our clients. We know and understand several factors influence land value dynamics. Knowledge of intended location of the investment and understanding of land value curve performance of this region is vital to maintaining this intricate balance – running a successful business model with a whole lot of happy and fulfilled customers.

We are very fortunate not to have worked this out for ourselves neither did we experiment on our own.  Whereas several hours of research help us make rational decision, it is the valuable information passed on as family legacy, guarded close to our hearts that makes us a formidable force in this market place. Land Value curve defines many variables including [sociallocker]

  • Entry Point.
  • Which Product Pricing Model to adapt for a particular project.
  • Who our End consumer clientele will be.
  • Who our Equity Partners will be.
  • Determines when the product expires.

    2. Competitive Price:

    We buy bulk and sell reasonably cheap.

    3. Ready Clean Titles:

    We only deal with land that has titles. In the event of proposed subdivisions our clients are notified and provided with a time frame when the individual titles are expected to be released.

    4. Flexible Payment Plan:

    We have land sale innovations that make land affordable to most Kenyans. One of the commonly used innovations is our innovative product Hazina where the buyer has a right (but not the obligation) to buy the land from the seller at a defined future date. The buyer hence promises to buy but has to pay a fee to compel the seller to hold the parcel of land for them. The fee is normally a fraction of the value of the land and is the only assurance to the seller that the buyer is committed. Because of the huge risks to the seller, this fee is conventionally non-refundable. Buyers could however transfer the option to buy before it expires for a fee hence a potential for initial product buyers to generate profits by trading their options to buy without buying the block of land. If a buyer’s circumstances change, they could transfer the option and charge a fee higher than the original option fee. The settlement figure will however always remain as a difference of the agreed value of land on purchase of the product and the original holding fee / option fee. For instance, with only Ksh 7,500.00 per month for 10 month you can secure 1/8 Acre Property in Isinya, Kajiado County at strike price of KES 300,000.00. We then give you grace period which can range from 6 months to 15 years depending on the product you choose before you clear the arrears. You can also decide to transfer your rights to purchase this property for a fee which is generally greater than the option fee.

    5. Low Risk Venture:

    Most Land Banking Kenya Options Products are low risk investments. The buyer has a choice whether to exercise the right to purchase the parcel of land hence compelling the seller to sell. In most instances, buyers can simply walk away from the deal at any time. Whether you are a very aggressive investor seeking higher returns or a conservative investor seeking to safe guard your investments, Land Banking Kenya Options has products that match your risk profile. We have complied several definitions of different risk profiles to help you identify your situation.

  1. Very Aggressive: Pursuit of high investment returns is priority to Security of capital. You engage growth assets and you are happy to accept the risks involved.
  2. Aggressive: You are biased towards high growth potential investments. You are willing to accept higher performance fluctuations in return for potentially higher long term capital growth.
  3. Assertive (Growth): You are mostly interested in maximizing long term capital growth. You are Happy to take calculated risks in order to maximize long term capital growth. You don’t want to make unbalanced investment decisions.
  4. Balanced: You prefer to balance between capital growth and capital security. You can accept short term risks in order to gain longer term capital growth.
  5. Conservative: You do not wish to take any investment risk. You want to safeguard your investment. You are willing to forego higher returns.

    Why is Land Banking using this innovative product – Land Banking Kenya Option a good investment strategy?

  • Land appreciates in value.
  • No risk of depreciation – worst case scenario is slow appreciation over time.
  • Less work – no need to manage tenants, manage associated land holding costs.
  • We add Value to Land – We obtain property development approvals adding substantial value to undeveloped land.
  • Opportunity to ride the Land Value Curve all the way up – Our Subdivisions are determined by market cycles so that buyers get these sites at a good price riding the wave up ensuring buyers get instant equity after exercising their options. We know our land value curves well, we know our timing well and hence we have mastered our entry and exit points.
  • No bank loan hence no interest repayments since option fee is just a fraction of the cost of land and can be staggered into 10 monthly installments.
  • Buyers can assign/transfer the deposit payment at a higher price to whoever they want.
  • Buyers can simply walk away from the deal should their financial circumstances change.
  • Buyers control the property at a cost of a fraction of the property’s value.
  • Buyers are entitled to all equity generated by the block of land. If the price they booked was KES 300,000.00 and 5 years later the value of the land has appreciated to KES 500,000.00, the buyer is entitled to 200,000.00 and our products confer legal rights to own the land by paying a total sum of KES 300,000.00 only. Normal costs involved in land purchase apply.