Did you know it is possible to own land in Kenya despite having a small salary? If not, it is possible as long as you are strategic and patient. That is why in this article, I will be telling you how you to buy a 1 million plot of land with a 30k salary in Kenya.

Why own land?

Land is one of the most sought-after assets in the country. To most people, this is always the first investment they make. Due to the increase in the price of land in urban areas, buyers are now targeting satellite areas to invest.

Land is also a cultural issue and hence owning it brings cultural satisfaction and enhances a sense of belonging.

Benefits of owning land

  • Almost guaranteed appreciation – Land is among the assets whose value is almost guaranteed to rise. This results in to increase in value and brings profits for the speculating investors.
  • Building of residential homes– Having land enables you to build your residential house. This is ideal for those people with families and helps avoid rent payments.
  • Financial collateral– Land is one of the most sought-after collateral for financial credit such as loans. It is acceptable by almost all financial institutions such as banks and Saccos.

How to buy a 1 million plot of land with a 30k salary in Kenya

There are various approaches that you can use to buy a 1 million land with a 30K salary. The choice of the approach will depend on your preference and financial discipline.

In the case of this article, we assume 30K is your net salary after all other deductions.

1.     Savings

This is perhaps the surest but the lengthiest process you can use to buy this land. Most financial advisers recommend not less than 20% of your income should go towards savings.

20% of 30K is at least 6K per month that should go towards savings. If you are to save this amount consistently, you will have 72K in 1 year, and will take at least 14 years to save 1 million to buy the land.

The only condition for this is that its price will remain at 1 million for the next 14 years. Buy can it? Not really as land prices appreciate regularly.

However, you can reduce this time by compounding your savings through interest-earning accounts such as Sacco’s investment, fixed deposits, government bonds, or money market funds. Learn more on how to invest with a money market fund in Kenya.

With compounding, you can reduce this timeline by half depending on the interest rates. As an example, with an interest rate of 10%, you can reduce those years to below 10.

2.     Buying through a Sacco

Sacco’s has become the go-to institution for Kenyans to achieve both their savings and credit needs. One of the benefits of Sacco’s is to give loans as a multiplier of your savings.

Hence, through this approach, you will still need to save at least 250,000 shillings and then get a loan multiplier of 4 times. The Sacco option will take you at least 4 years to save 6K per month to achieve the desired amount.

Getting a loan through a Sacco requires guarantors to guarantee the loan. Hence, it is advisable to join a Sacco with other common members who can guarantee your loan needs.

This is a costlier option as the loan will come at a cost. Hence, you need to ensure the cost of the loan doesn’t exceed the land appreciation amount.

3.     Getting a bank loan

Banks offer loans but do not require guarantees as saccos. However, for the bank, you will need to charge your land ownership to the bank.

The land title deed is registered with the banks as a security for the loan. Getting a loan through a bank to buy land is the fastest way you can use to get the 1 million land.

Some banks require you to give a certain percentage of the loan amount such as 10% then top up the rest 90%. However, if you don’t have the deposit, consider getting a bank that is financing 100%.

This will allow you to get your land almost immediately and then continue paying the installments.

These 3 approaches will meet your need to buy a 1 million plot of land with a 30k salary in Kenya. It all depends on your patience and strategy.

This is proof that salary is never a derailment to getting assets such as land. All you need is patience and strategy.


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