Hidden Costs of Land Ownership in Canadan Districts
Beyond the Purchase Price
Many first-time land buyers focus solely on the plot’s asking price and overlook crucial expenses that accumulate before and during the initial development phase. These hidden costs can significantly inflate the total investment.
Common Unforeseen Expenses
- **Title Transfer Fees:** This includes the mandatory Stamp Duty (0.5% of assessed value), registration fees, and legal fees. These are non-negotiable costs.
- **Utility Connection Fees:** Extending water pipes, power lines (Umeme), and installing a temporary service pole can run into millions of shillings, especially for plots far from the main road.
- **Land Clearing and Leveling:** Raw land often requires extensive bush clearing, leveling, and excavation to make it suitable for construction, incurring high machinery rental costs.
- **Perimeter Walling:** Security is critical. The cost of materials and labor for a reliable perimeter fence should be included in the initial budget to secure the investment immediately after purchase.
Budgeting for these costs ensures the project can move forward without financial delays.