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Where would you invest 7 million shillings?
Rank: New-farer Joined: 8/25/2012 Posts: 32
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jaggernaut wrote:
I'd suggest that you do real estate. Get an eighth acre at 1m at mwiki, ruai etc. It can fit 7 one bedroom flats on each floor. Each unit at 30m2. Build 2 floors ie ground and 1st floor, a total of 14 units. Construction cost will be 14units x 30m2 @15000 which totals to 6.3m. Rental income will be 14 units x 8,000 each totaling 112,000. Using the rent proceeds you can now choose where to rent a house for you to live in at maybe 40k and pocket the 72k balance every month.
With time and using the rent generated, you can add another 4 floors pole pole, maybe 1 floor per Yr, bringing the total no. of units to 42 and a monthly income of KES 336,000. This amount will be enough for you to rent a luxury apartment at Le Mac Westlands (at only 150k pm). Then you can get another 1/8th and do it again.....and again.
To those who have done it, can this approximation be real? Even now in 2014
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@justkiwi, the calculations are wrong on cost per m2. kes 15k per m2 is not enough for any highrise structure even if its a slum scaper eg kayole. The costs are in the range of kes 19k to kes 24k per m2 for these slumscrapers. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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a4architect.com wrote:@justkiwi, the calculations are wrong on cost per m2. kes 15k per m2 is not enough for any highrise structure even if its a slum scaper eg kayole. The costs are in the range of kes 19k to kes 24k per m2 for these slumscrapers. Agreed...what is your take on hydraform interlocks...can they reduce the cost? I saw your hotel project...Its interesting but the location? What has been the impact of the new highway on hotels along Thika road? Any increase on occupancy rates? Whats your target market? I hope you did a good feasibility study... I'm more inclined to the low end....slum scrappers you call them 
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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Return on investment for kenyan stocks on average is 20%. http://www.investinginaf...ock-market-performance/
Return on investment on a boutique hotel situated along the southern bypass is nearly the same, at 21%. http://www.a4architect.c...parison-to-stock-market/As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Member Joined: 12/15/2009 Posts: 142 Location: Nairobi
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a4architect.com wrote:@justkiwi, the calculations are wrong on cost per m2. kes 15k per m2 is not enough for any highrise structure even if its a slum scaper eg kayole. The costs are in the range of kes 19k to kes 24k per m2 for these slumscrapers. i dont know about cost per m2 but can an eighth acre accommodate the 7 one- bedrooms flats? UKITAFUTA UKABILA UTAKUFA BILA!
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@shalishali, it depends on the local authority bylaws for the area. If local authority allows for maximum ground coverage, its possible. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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If you allow adequate space you may be able to do 5 houses on the gnd and 6 on other floor per floor.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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the deal wrote:a4architect.com wrote:@justkiwi, the calculations are wrong on cost per m2. kes 15k per m2 is not enough for any highrise structure even if its a slum scaper eg kayole. The costs are in the range of kes 19k to kes 24k per m2 for these slumscrapers. Agreed...what is your take on hydraform interlocks...can they reduce the cost? I saw your hotel project...Its interesting but the location? What has been the impact of the new highway on hotels along Thika road? Any increase on occupancy rates? Whats your target market? I hope you did a good feasibility study... I'm more inclined to the low end....slum scrappers you call them @the deal, I expect the occupancy rates to hit 90% after the 1st year of operations. The target market is the middle class. I did a feasibility study. Wida charges kes 5,600 for the same room. Kikuyu town hotels charge kes 1,000 for lower class rooms. Sunstar hotel, off thika road in Garden estate, is 2 years old and already has over 70% occupancy rate, yet its off the main highway. Kitengela Nomad Hotel, Which i designed and built in 2004, has over 80% occupancy rates and charges kes 1,400 per night. http://www.a4architect.c...ng-the-southern-bypass/
As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 10/4/2006 Posts: 13,821 Location: Nairobi
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oh this thread is still alive? All Mushrooms are edible! Some Mushroom are only edible ONCE!
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Rank: Member Joined: 10/19/2009 Posts: 671 Location: Nairobi
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masukuma wrote:oh this thread is still alive? Yes.
Life is joy, death is peace, but the transition is very difficult.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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masukuma wrote:oh this thread is still alive? @masukuma, so how did you invest the kes 7m? As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 10/4/2006 Posts: 13,821 Location: Nairobi
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i bought a house in the republic of rongai and someother things then followed this piece of advice ProverB wrote:better still...whatever gave you the 7million....keep doing it. All Mushrooms are edible! Some Mushroom are only edible ONCE!
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@masukuma, that was a wise decision. i also follow @proverB's advice on keep doing what gave the capital over and over again. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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justKiwi wrote:jaggernaut wrote:
I'd suggest that you do real estate. Get an eighth acre at 1m at mwiki, ruai etc. It can fit 7 one bedroom flats on each floor. Each unit at 30m2. Build 2 floors ie ground and 1st floor, a total of 14 units. Construction cost will be 14units x 30m2 @15000 which totals to 6.3m. Rental income will be 14 units x 8,000 each totaling 112,000. Using the rent proceeds you can now choose where to rent a house for you to live in at maybe 40k and pocket the 72k balance every month.
With time and using the rent generated, you can add another 4 floors pole pole, maybe 1 floor per Yr, bringing the total no. of units to 42 and a monthly income of KES 336,000. This amount will be enough for you to rent a luxury apartment at Le Mac Westlands (at only 150k pm). Then you can get another 1/8th and do it again.....and again.
To those who have done it, can this approximation be real? Even now in 2014 The price of cement has gone down since then ...from 710 bob then to about 650 now. Chumas haven't changed. You can adjust the above calculations using @A4arch's 19k per sqm.
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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streetwise wrote:If you allow adequate space you may be able to do 5 houses on the gnd and 6 on other floor per floor. In areas such as Kasarani, kitengela, Juja, Kinoo etc, i see them doing 4no 2bdrm plus 1no 1bd per floor....total 5 units per floor....total 25 to 30 units depending on no of floors.
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Rank: New-farer Joined: 8/25/2012 Posts: 32
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Does these 19k/sqm do from approvals ,arch. drawings, foundation, sanitary ......,to finish.
Any adjustment for bungalows.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@justkiwi, the 19k per m2 is for the lowest quality possible as seen in kayole, mathare north etc. These buildings dont get architect or engineer designed and they also dont seek council approval. This cost is for such quality. For a sober highrise building, its best to budget for 25k and above per m2 till 50k per m2 depending on your target clientele. These estimates are for the actual building without approvals, drawings etc. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Member Joined: 2/18/2011 Posts: 448
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[quote=a4architect.com]Return on investment for kenyan stocks on average is 20%. http://www.investinginaf...ock-market-performance/
Return on investment on a boutique hotel situated along the southern bypass is nearly the same, at 21%. http://www.a4architect.c...arison-to-stock-market/[/quote] @architect i know a couple of wazuans who've done 100% on stocks in the last few months;the 32.1% quoted for past one year is the average though. All the same a good balance between real estate and stock is whats needed
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Cycle works for me Stock ~ buy House ~ house generates income back to stocks - consolidate make a move .... on 15 years not bad! though before 2002 it was tough! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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a4architect.com wrote:@justkiwi, the 19k per m2 is for the lowest quality possible as seen in kayole, mathare north etc. These buildings dont get architect or engineer designed and they also dont seek council approval. This cost is for such quality. For a sober highrise building, its best to budget for 25k and above per m2 till 50k per m2 depending on your target clientele. These estimates are for the actual building without approvals, drawings etc. I also think that apart from the money, our architects have not been creative and thus the ugly flats from eastlands to kitengela to ngong etc and in many towns all over the country. Some only started being creative when some well designed apartments for sale started being constructed and now the effect can be seen with nice flats even in areas such as mlolongo, Kinoo and Ruaka etc. It's also the same with stand alone houses whose designs (and finishing) have greatly improved in the recent past. Sometimes i see some older houses in top estates advertised on OLX and were it not for their premier location, would never be worth the 70m. Maybe our architects should be as creative as their counterparts elsewhere who design beautiful houses and flats even on 50x100ft plots e'g. some on http://www.realestate.com.au.
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