CategoriesFinancing

Why Consider getting a mortgage

WHY CONSIDER GETTING A MORTGAGE

Owning a home is more than hype; It is the gateway to long- and short-term financial success. In the long run you will build a nest of equity, and in the short run you will be able to take advantage of potential tax deductions and pay yourself instead of paying your landlord’s monthly rent. A Mortgage Makes Homeownership Affordable: Because you can spread your mortgage payments over many years, the amount you will pay monthly is more manageable and affordable! Traditionally, when people take out their first mortgage, they tend to choose a 25-year term.

Mortgage interest rates tend to be lower than any other form of loan because the loan is secured by your property. This means that the bank or building organization has a guarantee that if things go wrong and you cannot return it, there is still something of value – your property – to sell to pay for part, if not the entire mortgage.

Achieving homeownership made easy.

Mintvilla housing has partnered with KCB Ltd. to help you with house and plot financing of up to 90%. With this mortgaging you can buy a home without having the full price in cash. This means that you will still have money to make other investments and cater to your everyday needs.

  1. Security

When getting a mortgage, you also get yourself a Mortgage Protection Insurance (MPI) depending on the amount of mortgage, the age, and occupation of the buyer. This means that the bank bears the larger share in case of any risk to your homes such as sudden death or illness. And the best part of this MPI is that it runs the same period as the mortgage period.

  1. Affordability (Cheaper)

Paying for something you’ll eventually own is way cheaper than renting.

If you get a mortgage and pay consistently, the bank will view you as trustworthy. You will therefore be eligible to get another loan with lower interest and make another investment.

  1. Longer repayment periods  

KCB bank gives you up to 25 years of repayment depending on your various factors such as age, occupation, etc.

  1. Non-resident Kenyans are eligible

KCB gives home loans to Kenyans living outside the country. They can buy a house as an investment or a place to stay. And there is a choice of currency either cash or Kenyan shillings.

CategoriesFinancing

Tips on How to move on a budget

You’ve just found your dream and plans are underway to move in, but there’s one problem, however. The moving service looks set to cost you an arm and a leg hence immediately killing the enthusiasm that comes with moving into a new home.

As much as hiring a moving company comes a long way in easing all the logistics, it can sometimes prove to be a difficult affair pocket wise. Here are a few tips to facilitate moving into a new house on a tight budget.

Assess your budget

Knowing your budget and prioritizing to stick by it ensures you won’t break the bank to spend more than what you already have. What amount of money are you willing to set aside with regards to moving? That should be a key question as your moving budget also affects the repairs or enhancement budget of your new house.

Weigh in your options

Sketch all your preferred options and critically decide what best suits your immediate need. That includes laying all the options which include hiring a moving service or practising some do it yourself methods for the same. While hiring a moving company will massively be efficient in helping settle down into your new home, Do it yourself methods will cut the expenses that come with moving.

Use what you have

Boxes are the building block of any moving procedure. Purchasing a whole lot of boxes to facilitate moving can only be an expensive affair. By virtue of boxes being an easily available commodity, take it upon yourself to find them for free from stores that would want to dispose of theirs or get some from friends. You can also use sheets and blankets as packaging materials by employing them as wrappers to cover other home items.

Take only what you needss

Moving with all your commodities can negatively affect your limited moving budget. It is therefore essential to have a priority list ranging from the most important commodity to the least important. You can then donate or turn all the unnecessary stuff in for cash. That will therefore reduce the moving cost if you’re hiring a moving company.

Moving with a minimal budget can also be made possible by having friends and family help you in packing, moving and finally unpacking when in the new house. It can be quite difficult to convince someone to help you can’t dismiss reaching out to a person or two for a favour.

Moving can be a nerve-wracking experience especially if you want to do so on a budget, but being creative and getting out of your comfort zone will come in handy in helping you out.

CategoriesFinancing

What is mortgage fraud & how to avoid it

Mortgage offers a lifeline in helping people buy their dream homes. The flexible paying plans always beat the pay in cash method which sees more and more people getting away from it. In trying to purchase your dream home and live your best life, one might be tempted to undertaking unethical issues to cut themselves the best deal.

Mortgage fraud can be facilitated by both parties involved in the homeownership process. That includes the lender and also the borrower. It can be termed as a fraud once either or both the lender and the borrower omit key facts and figures regarding the deal. While striving to find yourself the perfect home it’s significantly important to avoid being the victim or perpetrator of mortgage fraud.

Here are a few types of mortgage fraud schemes to avoid.

    Occupancy fraud – this is whereby the mortgage applicant provides false information regarding his true intention with the property. They claim the property would be their permanent residence yet they plan to rent it out.

    Home appraisal fraud – it requires both parties to participate and it involves illegally inflating the value of the property.

    Employment income fraud – this occurs when the applicant provides false income to get more mortgage funds.

Want to avoid this kind of mortgage fraud? Here are a few ways to do so

Be honest on your mortgage application

Providing accurate information on your mortgage application goes a long way in protecting your assets or providing you with a date with the authorities. You might be forced to repay the whole loan and in some cases, the lender would have to take back your home.

Read and understand every document before signing

The excitement of purchasing a new home might sometime bring forth a lot of pressure and naivety, therefore, blinding you from key facts on the documents. It’s essential to have a deep look into the documents and seek advice clear any doubts. Don’t sign anything until you’re comfortable enough to do so.

Inspect the property

Have a property inspector of your choice thoroughly inspect the property. That might lead to uncovering of some underlying damages may be missed or hidden by sneaky sellers. That helps you get the best mortgage deal in terms of paying for the true value of the property.

Do intensive research or get referrals

Buying a house is a big deal and shouldn’t be taken lightly. It is only fair for you to do intense research before committing or getting referrals from friends and family who have been there before. It comes in handy to talk to someone who has been there before.

In a space that contains a lot of honest mortgage providers and the opposite alike, it’s important to be extra cautious to avoid falling into such traps.

CategoriesFinancing

Tips for choosing the best investment properties

Property ownership offers one of the best investment choices one can yearn for. It all narrows down to return of investments that are unmatchable to any other sector. Getting the right type of property to invest in is absolutely essential in making all your labour bears fruits in the long run or near future.

Here are some tips to help you spot the right property to invest in saving you the hustle of finding one or potentially living with stress and heartache of making the wrong choice.

Invest in what you know

Having prior knowledge on an investment choice you are about to commit is brutally critical. It not only helps you avoid making the wrong decision but also gives you the solid foundation of getting you numbers right and knowing what to expect in future. In case there’s a great interest with minimal knowledge, never shy away from getting professional advice regarding your next move.

Future Developments

Have a wind of what is going on development-wise in and around the area you’re about to purchase a property. Future developments in the area tend to influence returns in two ways. One, it can hike the property prices if there’s a lot of infrastructural development going on in the vicinity, but a property boom in the area also offers competition to the property you have just purchased.

Check the condition of the property

High maintenance cost can end the race before it even starts. You have to ensure that the property you’re about to purchase is in good condition and a massive chunk of money won’t be needed to get the property in the right shape. If the property is in good condition, maintaining that is key to ensure that its market value appreciates instead of the opposite. Hiring a property manager would be a great idea if doing so yourself proves to be a cumbersome task.

Understand the market Dynamics

Do as much groundwork as possible. The dirty work will help you understand and have all the market dynamics on your fingertips. Talk with the locals, Real estate proprietors in the area and even visit other properties in the area. It comes a long way in helping you know the demographics, the property market value in and around the area and an average appreciation rate. You will therefore have a clue of what to expect in the near future.

Finally, be informed and don’t shy away from seeking information from reliable sources. Making a property investment choice ranks up there among other key choices one has to make in life.