Kenya property investors have their eyes set on investing in the US following revelations that similar typed properties in the US are cheaper and promise more returns following the effects of the sub-prime mortgage two years ago.
According to Francis Wang’endo the Kenyan representative of the US based property company Realty Capital that is helping investors source and buy property in a number of US cities, more and more Kenyans are making inquiries on how to invest in the US properties.
“Since we announced a week ago of the opportunities for investment in property in Texas, Florida and a number of other US states, the response from the market has been overwhelming,” said Mr Wangendo.
“A delegation from the parent company is now set to visit the country next month to facilitate the investment plans.”
Key among the attraction points for Kenyan interested in the US property include the fact that in the US, an investor is not required to pay stamp duty for any property purchased.
In addition, any individual investor who after investing in property in the US and decides to retain his investments in the US are not required to pay tax.
Property market
Interest from the US company in approaching investors from countries outside the US follows a recent trend where hundreds of thousands of small—mostly community banks and credit unions all over the US due to the financial crash in 2008—that did not get financial bailouts that the major banks are busy recovering ground by offloading property to remain alive at rock bottom prices.
In addition, the institutions—which have been overwhelmed by having tonnes of non performing loans in mortgages, car loans, student loans have had to resort to selling off their assets including homes in foreclosure, short sales, repossessed property at well below their original values with replacement costs being well below what it would cost to replace in the current market.
With the latest trend, Kenyan investors are set to set a precedent never before realised on the local investment scene where Kenyans invest in the US as opposed to previous trends where the vice versa was true.
The trend is also catching up globally. A recent study indicated that more Brazilians, Chinese, investors from Asia—especially the Middle East, Canadians are scrambling for a piece of US property.
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