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16 Pages«<141516
Low End Housing: High Risk, High Return
mungaits
#301 Posted : Tuesday, November 13, 2018 7:37:06 AM
Rank: Member


Joined: 9/20/2007
Posts: 244
Chaka wrote:
mungaits wrote:
Here is the current bedsitter development craze;

There is high demand for the bedsitters due to interest from students, newly employed people and slay queens! ๐Ÿ˜‚๐Ÿ˜‚

- lease land (50x100) at 30k - 60k per month for a min of 17 years
- put up approx 40 units of bedsitters at approx 200k - 300k each (total cost 8m - 12m)
- rent out the units at 8k - 12k (total monthly income - 320k - 480k)
- recoup your costs in 3 - 4 yrs and enjoy your rent for 14 yrs

* very important LOCATION LOCATION LOCATION
( current hot locations; Waiyaki Way, kawangware, Dagoreti, kiambu etc)
* due to competition include WiFi, DSTV, small gym and secure parking (mostly for sponsors ๐Ÿ˜‚๐Ÿ˜‚)

Pros
- you access a plot in a location that could be out of reach or unavailable for out right purchase
- you donโ€™t tie your capital in purchase of land
- you get first priority to purchase the land if the owners want to sell the plot
- very simple and quick to put up (mostly without approvals)

Cons
- after the lease period expires you have to walk away and leave the development as it is

I know of guys/groups with numerous such set ups and raking in crazy amounts as rent every month

Happy investing

1.I wonder how the lease agreement looks like?

They very explicit and water tight with clearly defined terms

2.Does that construction cost include wiring(who applies for the power) and plumbing?

All costs covered but very basic finishing. A bedsitter has very minimal fittings

3.What if there are water issues at the location(borehole)?

Thatโ€™s why I insisted that location is KEY!


obiero
#302 Posted : Thursday, November 15, 2018 6:05:39 PM
Rank: Elder


Joined: 6/23/2009
Posts: 11,458
Location: nairobi
Let me leave this here for the up and coming.. Take the leap of faith and God will provide. Reverse economics states that supply creates demand! Build it, they will come to rent..
COOP 5,500; KCB 3,700; KQ 221,100
obiero
#303 Posted : Tuesday, April 16, 2019 6:43:09 PM
Rank: Elder


Joined: 6/23/2009
Posts: 11,458
Location: nairobi
1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly
COOP 5,500; KCB 3,700; KQ 221,100
nairobby
#304 Posted : Wednesday, April 17, 2019 1:09:51 PM
Rank: New-farer


Joined: 1/18/2019
Posts: 70
Location: kenya
There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI.

http://west-suites.com/project.html
Chaka
#305 Posted : Wednesday, April 17, 2019 3:41:47 PM
Rank: Veteran


Joined: 2/16/2007
Posts: 2,077
Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for?
[quote=nairobby]There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI.

http://west-suites.com/project.html[/quote]
obiero
#306 Posted : Wednesday, April 17, 2019 6:35:10 PM
Rank: Elder


Joined: 6/23/2009
Posts: 11,458
Location: nairobi
Chaka wrote:
Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for?
nairobby wrote:
There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI.

http://west-suites.com/project.html


@nairrobby those are very well done units
COOP 5,500; KCB 3,700; KQ 221,100
obiero
#307 Posted : Wednesday, April 17, 2019 6:36:47 PM
Rank: Elder


Joined: 6/23/2009
Posts: 11,458
Location: nairobi
Chaka wrote:
Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for?
nairobby wrote:
There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI.

http://west-suites.com/project.html


@nairrobby those are very well done units
COOP 5,500; KCB 3,700; KQ 221,100
wukan
#308 Posted : Wednesday, April 17, 2019 6:53:35 PM
Rank: Veteran


Joined: 11/13/2015
Posts: 1,086
obiero wrote:
Chaka wrote:
Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for?
nairobby wrote:
There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI.

http://west-suites.com/project.html


@nairrobby those are very well done units


Told wazuans about these units when only the top floor had been sold and they didn't seem keen.
Chaka
#309 Posted : Wednesday, April 17, 2019 10:23:15 PM
Rank: Veteran


Joined: 2/16/2007
Posts: 2,077
Were those top units any cheaper and were they being sold off plan?
[
quote=wukan]
obiero wrote:
Chaka wrote:
Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for?
nairobby wrote:
There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI.

http://west-suites.com/project.html


@nairrobby those are very well done units


Told wazuans about these units when only the top floor had been sold and they didn't seem keen. [/quote]
hardwood
#310 Posted : Wednesday, April 17, 2019 11:08:46 PM
Rank: Elder


Joined: 7/28/2015
Posts: 8,668
Selling a 25sqm single room at 3m is the biggest con ever since it translates to 120,000 Bob per sqm while cost of construction is 25k per m2. Ksh 3m can build you a 3bdrm house elsewhere. Also I thought all county approvals are for minimum 1bdr units, (like visionary kabogo recommended) lest we end up with high rise slums.
MugundaMan
#311 Posted : Thursday, April 18, 2019 7:15:37 AM
Rank: Veteran


Joined: 1/8/2018
Posts: 1,700
Location: DC (Dustbowl County)
hardwood wrote:
Selling a 25sqm single room at 3m is the biggest con ever since it translates to 120,000 Bob per sqm while cost of construction is 25k per m2. Ksh 3m can build you a 3bdrm house elsewhere. Also I thought all county approvals are for minimum 1bdr units, (like visionary kabogo recommended) lest we end up with high rise slums.


Laughing out loudly Laughing out loudly Laughing out loudly

You are crushing nairobby-wukan's dreams boss!
Karibu homes Mutongoni road Athi River ni kengine.
Those "homes" are 3m but if you stretch your arms you can literally touch opposite walls at once. This is why DC is the future. Wide open spaces and huge homes for a fraction of the cost per sqm and half of Nairobi is already there so amenities are fast catching up!
"The fool says in his heart, "There is no God." - Psalm 14:1
Dustbowl County is the Future of Kenya.
**1700 posts = Adios (for real this time!)**
MugundaMan
#312 Posted : Thursday, April 18, 2019 7:20:46 AM
Rank: Veteran


Joined: 1/8/2018
Posts: 1,700
Location: DC (Dustbowl County)
obiero wrote:
1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly



This is a lovely scheme that has worked wonders in Singapore.
Singapore has the highest home ownership rates in the world because of a similar scheme they started decades ago. Think of it as a revolving fund/chama for housing. By yourself alone you may not build a home in your lifetime especially if you are one of the 90% of payslip nation earning 50k or less. With the fund, by your tusmall tusmall contributions over 5 years pooled with others, hundreds of thousands of affordable and subsidised houses that you can move into and pay off over your lifetime can and will be built. Without this scheme the average member of payslip nation is not disciplined enough to save and invest in property so they will take the money buy fombe and nyama joma and cry all day that gava has failed because home ownership is out of reach. So this is good for them.
"The fool says in his heart, "There is no God." - Psalm 14:1
Dustbowl County is the Future of Kenya.
**1700 posts = Adios (for real this time!)**
FRM2011
#313 Posted : Thursday, April 18, 2019 7:39:57 AM
Rank: Elder


Joined: 11/5/2010
Posts: 2,276
MugundaMan wrote:
obiero wrote:
1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly



This is a lovely scheme that has worked wonders in Singapore.
Singapore has the highest home ownership rates in the world because of a similar scheme they started decades ago. Think of it as a revolving fund/chama for housing. By yourself alone you may not build a home in your lifetime especially if you are one of the 90% of payslip nation earning 50k or less. With the fund, by your tusmall tusmall contributions over 5 years pooled with others, hundreds of thousands of affordable and subsidised houses that you can move into and pay off over your lifetime can and will be built. Without this scheme the average member of payslip nation is not disciplined enough to save and invest in property so they will take the money buy fombe and nyama joma and cry all day that gava has failed because home ownership is out of reach. So this is good for them.


It can actually work but all Jubilee projects are done with the sole agenda of looting. The day they moved housing docket from lands under farida to macharia (the most corrupt jubilee minister), was the clearest sign this is a scam.
nairobby
#314 Posted : Thursday, April 18, 2019 9:01:24 AM
Rank: New-farer


Joined: 1/18/2019
Posts: 70
Location: kenya
Chaka wrote:
Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for?
[quote=nairobby]There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI.

http://west-suites.com/project.html[/quote]


No balcony.I'm guessing something from the service charge will cover the rates.
nairobby
#315 Posted : Thursday, April 18, 2019 9:04:28 AM
Rank: New-farer


Joined: 1/18/2019
Posts: 70
Location: kenya
hardwood wrote:
Selling a 25sqm single room at 3m is the biggest con ever since it translates to 120,000 Bob per sqm while cost of construction is 25k per m2. Ksh 3m can build you a 3bdrm house elsewhere. Also I thought all county approvals are for minimum 1bdr units, (like visionary kabogo recommended) lest we end up with high rise slums.


The con is constant in Nairobi, the oversupply will deal with that. That works out to about 12k per sq foot which is roughly the rate for these Kileleshwa apartments anyway. There is real demand at this price point though, developers are making a serious killing.
wukan
#316 Posted : Thursday, April 18, 2019 11:17:43 AM
Rank: Veteran


Joined: 11/13/2015
Posts: 1,086
FRM2011 wrote:
MugundaMan wrote:
obiero wrote:
1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly



This is a lovely scheme that has worked wonders in Singapore.
Singapore has the highest home ownership rates in the world because of a similar scheme they started decades ago. Think of it as a revolving fund/chama for housing. By yourself alone you may not build a home in your lifetime especially if you are one of the 90% of payslip nation earning 50k or less. With the fund, by your tusmall tusmall contributions over 5 years pooled with others, hundreds of thousands of affordable and subsidised houses that you can move into and pay off over your lifetime can and will be built. Without this scheme the average member of payslip nation is not disciplined enough to save and invest in property so they will take the money buy fombe and nyama joma and cry all day that gava has failed because home ownership is out of reach. So this is good for them.


It can actually work but all Jubilee projects are done with the sole agenda of looting. The day they moved housing docket from lands under farida to macharia (the most corrupt jubilee minister), was the clearest sign this is a scam.


The housing fund was established way back in 1957 but never 'operationalized'. Back then the colonial govt had started on social housing in shauri moyo, bahati, ziwani(most of eastlands). It was supposed to be within walking distance to the industrial zone and cbd. The housing was connected through scheduled public transport-Kenya bus services. Singapore got the same housing fund legislation but ran away with it. In kenya jomo kenyatta wanted people to go back to mashambani. He only did a few housing projects through grants for the middle class civil service that's how buruburu, onyonka, south b, south c, onyonka all came about. Now mido crass is all over twitter with hashtags to resist the housing levy yet their parents benefited from public funds for their estates.

The colonial govt didn't much damn about african living conditions as you can see from this feature on shauri moyo https://www.youtube.com/watch?v=YNyQy77K50A
There is a lady who is crying for the govt to bring down the colonial settlement and do the affordable housing projects. The place was built with open trough for toiletsSad Sad

Public transport and housing go together. Colonial govt established the Kenya bus services and jubilee is implementing the BRT system. Govt has been pouring billions trying to fix nairobi traffic de-congestion yet the traffic get worse. A new approach has to be made.
nairobby
#317 Posted : Thursday, April 18, 2019 1:10:55 PM
Rank: New-farer


Joined: 1/18/2019
Posts: 70
Location: kenya
MugundaMan wrote:
hardwood wrote:
Selling a 25sqm single room at 3m is the biggest con ever since it translates to 120,000 Bob per sqm while cost of construction is 25k per m2. Ksh 3m can build you a 3bdrm house elsewhere. Also I thought all county approvals are for minimum 1bdr units, (like visionary kabogo recommended) lest we end up with high rise slums.


Laughing out loudly Laughing out loudly Laughing out loudly

You are crushing nairobby-wukan's dreams boss!
Karibu homes Mutongoni road Athi River ni kengine.
Those "homes" are 3m but if you stretch your arms you can literally touch opposite walls at once. This is why DC is the future. Wide open spaces and huge homes for a fraction of the cost per sqm and half of Nairobi is already there so amenities are fast catching up!


Those Kitengela homes going for 8/9m are fetching 35k rent. That's very poor. Looking at it from a rental play perspective these studios are a much better investment and have ready demand for them.
popat
#318 Posted : Tuesday, April 23, 2019 8:06:19 PM
Rank: Member


Joined: 12/2/2009
Posts: 299
Location: kenya
wukan wrote:
FRM2011 wrote:
MugundaMan wrote:
obiero wrote:
1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly



This is a lovely scheme that has worked wonders in Singapore.
Singapore has the highest home ownership rates in the world because of a similar scheme they started decades ago. Think of it as a revolving fund/chama for housing. By yourself alone you may not build a home in your lifetime especially if you are one of the 90% of payslip nation earning 50k or less. With the fund, by your tusmall tusmall contributions over 5 years pooled with others, hundreds of thousands of affordable and subsidised houses that you can move into and pay off over your lifetime can and will be built. Without this scheme the average member of payslip nation is not disciplined enough to save and invest in property so they will take the money buy fombe and nyama joma and cry all day that gava has failed because home ownership is out of reach. So this is good for them.


It can actually work but all Jubilee projects are done with the sole agenda of looting. The day they moved housing docket from lands under farida to macharia (the most corrupt jubilee minister), was the clearest sign this is a scam.


The housing fund was established way back in 1957 but never 'operationalized'. Back then the colonial govt had started on social housing in shauri moyo, bahati, ziwani(most of eastlands). It was supposed to be within walking distance to the industrial zone and cbd. The housing was connected through scheduled public transport-Kenya bus services. Singapore got the same housing fund legislation but ran away with it. In kenya jomo kenyatta wanted people to go back to mashambani. He only did a few housing projects through grants for the middle class civil service that's how buruburu, onyonka, south b, south c, onyonka all came about. Now mido crass is all over twitter with hashtags to resist the housing levy yet their parents benefited from public funds for their estates.

The colonial govt didn't much damn about african living conditions as you can see from this feature on shauri moyo https://www.youtube.com/watch?v=YNyQy77K50A
There is a lady who is crying for the govt to bring down the colonial settlement and do the affordable housing projects. The place was built with open trough for toiletsSad Sad

Public transport and housing go together. Colonial govt established the Kenya bus services and jubilee is implementing the BRT system. Govt has been pouring billions trying to fix nairobi traffic de-congestion yet the traffic get worse. A new approach has to be made.

What you need to realise is that this project threatens the landlords and slumlords of this great country and as such itll face alot of resistance from the would be victims.Its only Uhuru and a few like minded individuals who can push for its realization.Its a good idea but with the selfish mindset of capitalistics it does not wash.
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