Could 'lush' loan market prompt investment in Kenya?

09/05/2011 - Kenya property & investment news Posted by Neil King
Could 'lush' loan market prompt investment in Kenya?

Investment in property in Kenya could pick up as it has been noted that the market is 'lush with new loan products'.According to AllAfrica.com, the products are competing for the prospective homeowners in the market who qualify for mortgages, namely salaried middle income earners.The market has developed a range of innovative home loan products to attempt to stimulate the market.Indeed, financing can be found for vacant land purchases, residential plots, off-plan homes, ready homes and pension-backed mortgages.According to Robert Kinyua, the increase in flexible finance should help more young professionals onto the property ladder."The requirement for deposit from most developers has usually been a major impediment to acquiring homes," he told the news provider."For instance, to purchase a Sh9 million property, a home buyer would require at least Sh2.7 million initially including 10 per cent deposit and other costs."He added that "such a huge sum of money" would take young professionals a long time to save.