Car or Land: What Should You Prioritize?
Why your first priority should be to purchase land before buying a car.
Whether to buy land or car is a dilemma that many people have grappled with for quite some time. Many people, especially the young generation have struggled with this question especially in instances when they cannot afford both of them at once.
At Nulands, we understand the confusion that this question may generate and that is why in this article, we are comparing land and car investment. This will help you make an informed decision on the best finance choice you should make.
- Investment Perspective
From an investment perspective, land is considered a better investment because of the fact that it appreciates in value. According to Hass Consult latest Property Index, land appreciates by an average of 5-10% in most of the satellite towns in Nairobi and other regions across the nation. This means that whether you are buying land for immediate development or for speculation, you are sure that it will appreciate in value and you will get more returns should you choose to dispose the land in future. At Nulands Limited we have many options from where you can purchase land.
The case is different for car purchase. A car will lose much of its value immediately you drive it from the show room.
- Cost of Ownership
Buying a car is the easy part. There are additional costs that come with maintaining the car. The maintenance costs depend on the car model and the year of manufacture. Owning a car comes with the additional stress of having to think about the cost of fuel, traffic jams, parking among other factors.
Land on the other hand, comes with minimal or no maintenance costs. Our company, Nulands Limited has property in different locations allowing you the flexibility of acquiring affordable property at your most preferred location. In most case, you do not have to do so much on the land you purchase from Nulands but you are sure that the land will appreciate.
- Income Potential
Land has great potential to generate income. The pieces of land we have at Nulands Limited allow for diversity in terms of land use. They can be used for development of rental properties, farming, and home construction. On the other hand, it is not easy for a car to generate income unless it is being used for a business, such as delivery service or taxi.
With the growing population and increased demand for real estate, the sky is only the limit when it comes to earning potential from land.
- Risk Level
All investments have a certain risk level. However, owning a car has a risk portfolio. Some of the risks include theft, accidents, and breakdown among others. If it is your first time, then you are most likely exposed to higher risks.
Land also has its own sets of risks. At Nulands Limited, we have provided a summary of what you need to consider when doing real estate investment. We also have information on due diligence of purchasing land in Kenya. What this means is that we have conducted the needed due diligence to reduce your risk exposure.
Conclusion
In conclusion, there is a debate on which should come first, land or vehicle. One question that you could be asking is the cost of buying land in Kenya. Yes, it is relatively expensive to purchase land in Kenya when compared to a vehicle. That is why land is a better investment when compared to a car. If you have been grappling with this dilemma, then think of land investment from Nulands Limited as this investment will guarantee you returns.