Overseas Opportunities for lower middle class
Real Estate Goldmine in Third World Countries
Oct 15, 2009
The cash crunch biting into pockets of western citizens could be a blessing in disguise for the adventurous ones. Real estate prices, continue to soar in African countries unlike in the West. Also, the dollar's strength over third world currency, ups their spending powers.
Case Study: Kenya
Currently in Kenya’s capital Nairobi’s houses are popping up all over thanks to rise in rural to urban migration. What has fueled this bubble is foreign currency sent by Kenyans abroad many who hold blue collar jobs in the west. A residential apartment in a low income area is likely to net the owner $5000 monthly in rent. In upper middle class neighborhoods, such a house can net $10,000 in monthly rent.
Initial Investment
With an initial solid investment of $150,000 to $250,000 all factors constant, one can buy a new apartment house from valid property agents. For foreigners the best way to avoid the hustle of having to build from scratch is buying a new apartment house. This year's property index, released by Hass Consult, a real estate company, shows prices of houses in the second and third quarter fell by 1.4 and 2.2 percent for residential houses (http://www.capitalfm.co.ke/business/Kenyabusiness/Kenya-real-estate-prices-dip-3135.html). Occupants of these houses are middle income Kenyans in white collar jobs.
Management
The hassle of managing the house can be contracted to property agents who get commissions of 5 to 10 percent off monthly rent. Alternatively, an owner can employ people to manage for him. Hass Consult, Villa Care, Property Leo and Lloyd Masika are some credible real estate companies in Kenya that source and manage property on clients behalf.
Where to Start
For a foreigner moving to a new country with an investment idea it can be a bit unnerving, on where to start. But in Kenya, Fast Track firm helps foreigners settle down and guides them on paper work involved. See site fastrackkenya.com
Other Investment Avenues
Kenya's connection to information superhighway courtesy of the newly implemented fiber optic cable means its ripe for Business Process Outsourcing. In East and Central Africa it’s the market leader in Information Technology SME's. Call centers are popping up all over and employing many Kenyans. Kenya’s tourist capital Mombasa, is also abuzz with holiday homes construction by foreigners. See Site
 |
