What are your Real Estate needs?

Retirement planning. Part 1- Home ownership

“Sometimes people don’t really know how to assess their future needs”

Charlotte Dougherty. Certified financial planner.

Have you been thinking, either actively or passively, about retirement?

Would you like a few real estate suggestions to be better prepared for the next phase?

Retirement is the “last phase” of your life.

Valuer Kariùki, MRICS

Follow your dreams

Do you dream of retiring in a beach front property in Malindi, Mombasa or Diani? or do you prefer the picturesque Lake Elementaita in the Rift Valley? Then don’t hold back.

If you like the view of the mountain, then you can consider Nanyuki.  

If you prefer the freezing Limuru, Kericho or Nyahururu weather, go for it but remember to set aside some extra money for buying “winter clothes”, warming the house and treating cold related ailments. I hear arthritis thrives in cold weather.

Whatever makes you happy, go for it!

Valuer Kariùki, MRICS

Say NO to a downgrade

Retire in a place with WIFI, running water, tarmac roads, electricity etc. If you have been enjoying a hot shower, don’t downgrade to showering from a bucket or using a pit laterine.

How about farming?

I dare say, if you have spent most of your life in a city, don’t downgrade to a village to take care of animals upon retirement.

If you want to farm, you can still do that at your own pleasure without necessarily living in the farm. I have nothing personal against farming. In fact, I would advise that you talk to Caleb Karuga if you are seriously thinking about farming.

You deserve a decent place where you can host your friends, shop at a mall, play golf at a nearby course, have coffee at Kilele Coffee etc.

After all, all your social networks are in the city and you might not have deep roots in the village.

Retirement hustle

If you are to succeed in a consultancy, lecturing position or business, you stand a higher chance while living near a city than in your ancestral village.

If you own a house in a concrete jungle or your current house is too big/ small or is in a congested part of the city, begin planning on how you can move to a more relaxed and quiet part of the city. This could mean selling your current house or renting it out.

If you are currently living in a rented house, start thinking about eliminating the rent expense from your monthly bill. Begin by buying a plot or saving towards buying a house.

If you like to retire near Nairobi, Thika road and Mombasa road have good options.

Serviced 1/8 acre plots in a gated estate in Ruiru range from 3.2 million for Mwananchi and 15.1 million for high end fully serviced 1/4 acre plots in the “New Runda” about 20km from Nairobi CBD.

A villa in Karen or Runda sitting on half an acre is also an option depending on your budget.

However, if you have a plot where you need a masonry perimeter wall with an electric fence to remain safe, or you cannot take a walk around the estate at 8pm without the fear of being mugged, SELL that plot.

If you want to be coming to Nairobi on a need basis but do not want to sleep in a hotel, you can buy an apartment and furnish it. You can then register the apartment on AIRBNB or any other online platform. That way, you can then be getting an extra coin while still maintaining a home in Nairobi.

There are some elegant 2 bedroom apartments with lots of green spaces, a swimming pool and jogging tracks. You can furnish them and get up to Kshs 60,000 per month or rent it out unfurnished for Ksh 33,500. The best part is that they have a waiting list of ready tenants. These apartments are going for about Kshs 4.7 million and are only 20km from Nairobi.

In the coming weeks we will talk about…

How to finance this dream without touching your pension.

How Kenyan’s in the diaspora can prepare for retirement in Kenya.

How to invest in a commercial property in readiness for retirement.

Which saving or insurance products are best suited for retirement readiness. I invite insurance or investment banks to supply me with this information.

I appreciate your feedback. Please reach me on 0723477035 or email info@kariukiwaweru.com

Valuer Kariùki, MRICS

Registered & Practicing Valuer

Chartered Valuation Surveyor.

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