September 08, 2013   by

Investing in land is not only for people with large bank accounts. Even your chama can invest in land. Land gives you an opportunity to put your money in something that is bound to appreciate in value with time and thus a very secure investment. Buying land is a resource that you can purchase and be sure that you have made a good investment. Moreover, you can do so many things with land that can earn you an income. Joseph Thuo of Thuo Investments gives some pointers.images (2)

Farm for export

There are many land investors who are farmers and cultivators who use their land to harvest many kinds of food and raw products such as French beans, flowers, etc. These products can be exported abroad and can be profitable enough if sold in the right markets. If your chama does not have seasoned farmers, you can hire professionals to run the farm and reap the profits. Fresh flowers such as roses can be very lucrative when sold to European countries with a stem fetching as high as 1 dollar. Keep in mind that the initial outlay may be high, but the returns are quite good.

Lease land

If you don’t want the hassle of farming, you can opt to lease your land for agricultural purposes. You can lease to a farmer or an agricultural company that is involved in farming. The market for farm lands is growing as the demand for food increases.

Grow hardwood

One of the possible ways to make money involves growing hardwood timber as the supplies of hardwood are decreasing. Because of this the price of hardwood timber is increasing. If you choose to plant hardwood trees you will be reforesting and making a profit to boot. Hardwood poles are in high demand with companies such as KPLC for electrification purposes and also furniture companies have high demand for hardwood. However, keep in mind that this is a long term investment as these trees can take upto five years to mature.

Buying and selling

One of the ways you can make money in land investing is to buy land at a reasonable cost and hold it until its value increases to a level where you will want to sell. If you intend to go this route, research the area you want to buy land. Find out the characteristics of the area in which you are planning to buy land. Remember that if it is an area that is growing quickly your investment has a better chance of appreciating more rapidly. If it is an area that is growing more slowly, decide if you want to be in possession of the land for a longer period of time to earn a better return on your investment. Also, determine the location. It is also important to determine the type of zoning that is in existence. Ensure that the land has access to various utilities and services such as water and electricity.


You can also choose to build on the land. It is a profitable business to build houses, apartments, and commercial buildings on the land and rent them out or sell them once they are completed. With the buoyancy in the real estate market it will not be too difficult to find customers to rent or sell to. Once your rental rates are reasonable you will make good money. If you choose to sell you may have to hold on to the building depending on what is happening in the marketplace.

Now, when you decide to buy land for investment, consult a realtor. Find a realtor who is a land property expert. If it is possible, find a real estate agent who also invests in land so that he has the benefit of real-world experience. Realtors such as Thuo investments located at Jubilee Exchange House are reputable land agents. Next, decide how you will finance the land purchase. Understand that you may have to come up with a large amount of money to put down on the land if you are using bank financing. Thus, it is important that your chama has saved up quite a bit.







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