The real estate industry has gone through a rollercoaster in recent months. 2020 in particular was unpredictable, as it was worrying to many developers. To deal with consumers’ changing attitudes, real estate companies have had to adjust how they interact with clients. A company that is currently still focused only on making as much profit as possible will probably not survive long term in this economy.
It is apparent that real estate companies especially those selling affordable land have taken on new methods of selling property. Instalment plans have now become one of the fastest methods of land buying and an attractive hook for new landowners.
Lesedi developers have taken the affordable and flexible payment to a whole new level by introducing a one-of-a-kind product called Lesedi Club for Land. LCL as popularly known is a club where a client registers to become a member where he or she pays little installments from as low as Kshs. 10,000 per month. “To become a member, an individual only requires to pay a minimum deposit of Kshs. 120,000 which can be paid either in 3, 6 or 12 months. Thereafter, the land is handed to the client and the remaining balance is cleared within 3 years. Many people have received the idea positively and we have over 150 members registered within a very short period” Vincent Munderu, Head of LCL.
It is worth noting that whenever customers come across such an offer as that of LCL, paid in weekly or monthly installments, they feel relieved. A certain need for specific products and the ease of payments is the main reason behind increased customer satisfaction.
Mr. Geofrey Kiragu, the owner and director of Lesedi Group cites high price of land and lack of proper financing as among the biggest challenges in investing in property according to the customers who come to him. He adds that because of movement restrictions, lockdowns and changes in consumers’ financial circumstances among other issues brought about by the pandemic, customer behavior has changed. In this regard, revenue acquisition has become uncertain and developers need to look for new and creative ways to ensure Kenyans with varying incomes acquire property. “LCL was born out of the need to provide affordable land in developed and upcoming areas to Kenyans who are interested in owning land, but develop cold feet due to the high prices and fixed payment plans. Clients expect to have multiple ways to pay for a product,” Mr. Kiragu.
Buy now, pay later is becoming more popular, thanks to the seismic shift the real estate industry has experienced over the course of the COVID-19 pandemic. With instalment plans starting from as little as Kshs. 10,000 a month, real estate firms have had to up the ante in a tight interest rate regime that has forced many people to rethink their purchasing and financier decisions. Besides, becoming an LCL member according to Mr. Kiragu allows individuals to choose from a variety of properties and an area of preference.
Lesedi developers has allowed clients to take home a purchase without paying for it immediately, which is extremely attractive to a lot of consumers. People are more likely to buy something if they can pay for it in installments. Cost (Amount and flexibility payment), is an important criterion consumers use to select real estate providers. LCL gives buyers an additional option and the increased payment flexibility many individuals crave.
Mr. Kiragu, inspired by his own humble background when he was growing up says that Lesedi Developers gives the investors a flexible and affordable payment plan since the team believes that anybody can become a landowner.