ok let us know
size of build up area
type of soil
any BQ ie boys or servant quarters?
Any previous building experience ?
Are you hiring foreman ?
Do you have a store or space for material?
What is your source of water for the project?

Is it an investment or a humble abode? If the former, you can do better - especially when you add the cost of land to the 5 meters you intend to spend. If the latter, I'm all for it. BTW how is water and security in that neighborhood? Are there schools for the kids in the neighborhood?

29 yrs too young to be building retirement home unless its the house you are going to be living in. why not buy more vacant plots in the area

Why Kisumu of all places and at such a time?

Where's your project at? That might either increase or decrease your cost drastically[/quote]

Ruiru, just behind KU. I am using Ndarugu building stones, sourced an hour away, which is already giving some savings.

Mine is an actual retirement home and I plan to take two years to complete the project. Once done I intend to reward myself with a year off to really get to see Kenya. I get embarrassed when visitors seem to know my beautiful country better than I.

@All,

Be aware that if your plot is located in a middle income or upcoming high brow area and if your investment objective is for income , it is better to go for terrace maisonettes (duplexes)
rather than 4 flats for the following reasons :-

PROS
(i) Your build up area will be drastically reduced, as you can build TWO OR THREE of 4 bedroom maisonettes on a 1/4 acre plot . The builup area of each will be 0.012Ha ie 120 Square meters or LESS having one visitors room downstairs and 3 bedrooms upstairs etc.
That means you can build two maisonattes on 240 sq meters (0.024 HA) or LESS and 3 terrace masionattes on 360 sqare meters (0.036 Ha) or LESS.

(ii) You use less building materials as you only have one kitchen per duplex, one master bedroom rather than multiple kitchens (per flat ) etc. There will less expenditure on plumbing materials, the slab (decking) area is reduced as part of it is used for the internal staircase etc.

(iii ) Good pricing for your building if you want to sale off in future and you have ample space if you desire to add boys quarters and other utilities like garden /lawn,
carport etc. The add ons increases your rental income.

(iv) You deal with less tenants which reduces the risk of payment default as mostly middle to high income earners will be your likely clients
and you will be dealing with less number of tenants.

(iv) Easier to build in phases as beyond german floor (DPC) and roofing, you can segment the construction by progressing far in one duplex before you continue with the next one.

CONS
(i) Low demand as it only appeals to a particular segment of the society. It has to be
situated in a good secure environment with basic amenities.

(ii) The pricing that is the rental income may be low initially (150% higher than rental cost of a flat) in the first two years but there after the rental income will be 100% or more compared to the rental cost of a flat.
This is not a problem bearing in mind that you spent less to build as compared to building a block of flats so invariable ROI on both initially are the same. With time you can easily achieve ROI of 10 - 20%.


NOTE :- This is only an additional information (might be for the future) not
neccessarily to discourage our friend @Penny-Stocker to continue with his well planned project.


Regards

[quote=young]@All,

Be aware that if your plot is located in a middle income or upcoming high brow area and if your investment objective is for income , it is better to go for terrace maisonettes (duplexes)
rather than 4 flats for the following reasons



Dear Young,

This is very useful information, thanks. I happen to own a quarter acre plot in the same Membley area. The location meets all the conditions you have outline. I have been thinking of doing 2 maisonettes as you describe - for rent. The only question I have is whether to use bank credit. What is your take on this? I am sure I can get at least 70% financing but would like the rental cash flow to pay for the loan.

"Joint a good SACCO, finance to a level and take a soft loan which usually 5% interest.

The only time you could consider taking bank loan for real estate is if you are building to sale in a very prime and marketable area."


Thanks Young.

This is good advice

Back to the drawing board I go.