Property developers have unveiled a new way of buying houses, which seeks to protect buyers from unexpected price fluctuations, while improving on value of their investment.
The investors have particularly been advised to buy houses through off-plan purchase system, which helps cushion them from price escalations fuelled by inflation and exchange rate volatility, among other economic factors.
Under the off-plan buying system, homebuyers pay a certain percentage of the home price to a developer to reserve the property under construction.
This approach protects them from rising cost of building materials, which has forced developers to constantly adjust their prices making it expensive for potential homebuyers.
While Central Bank has adjusted upwards its benchmark lending rates to commercial banks to control inflation and protect a weak shilling, part of the consequences have been an upward revision in mortgage rates. The changes in these rates has forced leading banks to also review up their mortgage rates.