Benefits of Getting a Buy-To-Let Mortgage in Kenya


Are you thinking of buying a property to rent out? Real estate is an attractive investment field, especially property rentals. Today, you can easily find excellent properties for sale, buy, and build a bigger and more profitable real estate portfolio. Nairobi, the capital city, is among the top regions attracting more investors in Kenya. Finding competitive properties to buy in Nairobi is more accessible in the modern digital market, especially with the top platforms facilitating extensive reach. Platforms like offers investors a chance to explore a rich pool of real estate properties up for sale, ensuring you find and invest in a promising venture.

Considering how you will finance the purchase is critical as you hit the market. You’ve probably saved some cash, done your research, and came across a buy-to-let mortgage. This is a mortgage you take out on property specifically to rent out. You can get a buy-to-let mortgage from most mortgage lenders. The buy-to-let mortgages work in much the same way as a standard mortgage. Some key differences you need to be aware of are that buy-to-let mortgages tend to have higher interest rates and usually require a larger deposit. Despite such downsides, buy-to-let mortgages remain a go-to for many real estate investors due to their many benefits. Among the key benefits include:

Tax-deductible mortgage

A considerable tax burden won’t characterize your real estate investment quests once you opt for the buy-to-let mortgage. In the taxman’s eyes, the mortgage is the cost of doing the real estate business. As such, the interest payments on the mortgage are tax-deductible, allowing you to lower the tax bill each year. This means you can claim back some of the costs from your total tax, savings that help you build a more profitable portfolio.

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Use the property as security for the mortgage

Do you have enough assets to act as security to secure a loan and invest in property? Using the property as security helps fast-track the process. The lender considers the property value while weighing your creditworthiness. The property and the deposit you manage to raise give you an upper hand, allowing you to secure the financing to buy a great property before it slips off your fingers. Among the top challenges real estate investors face is access to capital. With the property as security, you have a better chance of securing the mortgage to buy and earn from the rental.

Cover the mortgage with the rental income

How much rent will you charge on the property, and what’s the monthly mortgage repayments amount? Following the property you buy, the income it generates, and the mortgage terms, you could find that the costs are covered and leave enough to pocket. You can find lenders offering flexible terms, allowing you to comfortably finance the mortgage from the rental income, a security layer any savvy investor relishes.

Long-term investment

Property is a long-term investment. After repaying the buy-to-let mortgage, you can make a considerable profit by selling the house. This is more so since the properties in areas like Nairobi mostly appreciate, provided they are well maintained. With the mortgage, you can comfortably finance the acquisition, enjoy the rental income, and at the end of the day, sell and pocket a good profit.

Financing a real estate investment can be overwhelming, a challenge that keeps many potential landlords away from their dreams. However, this doesn’t have to be a major roadblock if you opt for a buy-to-let mortgage. The mortgages are great for landlords, but before you dive in, you need to do your homework and pick a property in a great setting. This is keeping in mind that property acquisition and generating income are different stories. You still have to market the property and ensure you bring in the best tenants. It would help if you also considered other financial needs, such as repairs and maintenance required to keep the property in top shape.

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