Fellas,

I am totally confused on which property to go for:

Madaraka NHC Apartments:
2Bdr 5.5 million- rental income 25-30k
3Bdr 7.25 million- rental income 35-40k
Estimated Completion Date: Dec 2011

Riverside Drive (Riverside Pointe)
-2bdr 9.95m- rental income 60-70k
Estimated Competion date: June 2012

Although madaraka house have low effective rental yield i assume the area has less vacancy rate as compared to 60k to 70k apartment which has got 7% rental yield.

- Please advice on which property you would go for...and your reasons for short term or long terms positions..

Thanks mates!!

Thanks for posting the link...@Njamba whats your take on my dilemma...

Won't bother with the 3bdr in Madarak. You pay an additional 2m for 120k maximum extra annual income.
The riverside deal is tempting if you have the cash.

Seles-ou are buying one flat not 100s. You can find a tenant.

Otherwise go for the Madaraka flat. Mind you, rent doesn't go up as fast in Madaraka as it would at riverside

@ Sales83

What you have is a good problem. However, think like an invester as far as returns are concerned. I would look at it this way

a) I'm I looking to buy the property as an investment or home?( Do I want to move into the house in future?
If for home, look at the environment, schools , job etc
IF for rent, then

1) If you can get the 9.9M house, then you should be able to get 2 5.5 M houses for rental ( forget the 3 bed). So the real comparable costs and returns would be 60-70K Vs 2*(25-30K). This is as far as rental income goes. Generally, the working class will pay more for houses near their work places to avoid Jams that are now endemic. This tells me that very soon, there will be an upward pressure on rental houses in Mada.

2) The element of capital gains also kicks in and it is more likey that you would get higher returns on capital on lower cost houses than on higher cost houses. In this way , you are then able to offload one house to clear the other in a very short time especially in new housing.( also note that Mada rents have been depressed due to the attachment to CCN and NHC battles. The new houses will be a different ballgame all together.

3) HassConsult did a survery ( last week) that indicated that high cost apartments have had the biggest hit on rental returns stagnation due to the high numbers provided.

I believe you get my drift!

How much do the new apartments in Nairobi west and south c go rent for?

I love the location of madaraka it is close to stratmore, Nairobi west pubs, Tmall,CBD and Upperhill.

It will be for purely rental purposes..

Their website has been down, for sometime now since sunday evening..typical kenya style someone must be sleeping on job..some links are not updates and some files are corrupt!!

Anyways apartment 2bdr - 5.5 and 3bdr 7m and 7.25m respectively..

Be blessed..

From my understanding it is a direct sale, not a tenant purchase scheme.

The prospective buyer should pay cash or get a liaise with banks for financing..

I personally like Nyayo estate concept and management style..The only problem i have on them it is location and number of houses. The 3bdr appartments have become so many affecting ROI. A 3bd apartment goes for ~25k for (4.5-5.5m) house.

On availability a little bird tell me the remaining blocks have been booked by the government for its military staff..

Hi Fellas,

Did anyone of you guys buy into NHC Madaraka Housing Scheme Phase I or II? Are you guys happy with the construction progress and final finish? and for those who bought Phase I, how much does a 3br and 2br apartment fetch in terms of rental market rates?