Costs you need to know when buying a home in Kenya

When buying a home in Kenya, there are several costs to consider beyond just the purchase price. Here are some common costs:

1. Property Purchase Price: This is the cost of the property itself, which varies depending on factors such as location, size, and condition.
2. Legal Fees: You’ll need to hire a lawyer to handle the legal aspects of the property purchase, including conducting searches, preparing documents, and facilitating the transfer of ownership. Legal fees typically range from 1% to 2% of the property purchase price.
3. Stamp Duty: This is a government tax levied on property transactions. The stamp duty rate in Kenya is calculated as a percentage of the property purchase price and varies depending on factors such as the location and type of property.
4. Valuation Fees: Before obtaining a mortgage, the lender may require a valuation report to determine the market value of the property. Valuation fees vary depending on the property’s value and location.
5. Mortgage Fees: If you’re financing the purchase with a mortgage, there may be fees associated with the loan, such as loan processing fees, appraisal fees, and mortgage insurance fees.
6. Title Search and Registration Fees: These fees are charged by the government for conducting searches to verify the property’s ownership history and for registering the property in your name once the purchase is complete.
7. Insurance: You’ll need to secure homeowners’ insurance to protect your investment against risks such as fire, theft, and natural disasters. The cost of insurance varies depending on factors such as the property value and location.
8. Utility Connection Fees: When moving into a new home, you may need to pay fees to connect utilities such as electricity, water, and gas.
9. Homeowners Association (HOA) Fees: If you’re buying a property in a gated community or a development with shared amenities, you may be required to pay monthly or annual HOA fees for maintenance and upkeep.
10. Maintenance and Renovation Costs: Factor in the cost of ongoing maintenance, repairs, and any renovations or improvements you plan to make to the property.
11. Moving Expenses: Don’t forget to budget for moving truck rental, packing materials, and any professional movers or services you may need.

It’s essential to carefully consider all of these costs when budgeting for your home purchase in Kenya to ensure you’re financially prepared for the transaction. Consulting with a real estate agent or financial advisor can also help you navigate the process and understand all associated costs.