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Can someone offer advice here for a first time apartment buyer?
lisaox
#1 Posted : Friday, July 11, 2014 4:34:10 PM
Rank: Member


Joined: 7/4/2010
Posts: 118
I am considering buying an apartment. I have narrowed down to 2 properties. 1 is very nice, new, is in a block of about 20 units, along the way to a slum area in nairobi and service charge is 7k pm. The other is in a better location i would say (though they are about 5km apart), is more spacious,not so good finishes, (in my view so far)bad management company as poor job of cleanign and general tidiness, 80 units, service charge 5k pm. This latter one has been valued higher than the other though they are being sold for same price. I will be living there so either is fine for now.
Can someone with some real estate buying experience offer some solid advice to the unschooled like me?
How much sway would i hold with a management company if i feel they are stealing from me because of the service charge am paying without seeing real quality/commensurate service offering?
Angelica _ann
#2 Posted : Friday, July 11, 2014 4:36:54 PM
Rank: Elder


Joined: 12/7/2012
Posts: 11,908
Locations just say the name of the developments
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
lisaox
#3 Posted : Friday, July 11, 2014 4:41:02 PM
Rank: Member


Joined: 7/4/2010
Posts: 118
oak * ridge* apartments naivasha road
sunning* hill* apartment mbaazi ave
Gordon Gekko
#4 Posted : Friday, July 11, 2014 5:20:18 PM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
As an apartment owner you have a share in the management company, and have a say on how much service charge to pay. Since the service charge is a cost you can adjust, it can't form the basis for a buy decision. As a shareholder you also have a right to sack the management company......
Chaka
#5 Posted : Friday, July 11, 2014 6:18:47 PM
Rank: Elder


Joined: 2/16/2007
Posts: 2,114
Gordon Gekko wrote:
As an apartment owner you have a share in the management company, and have a say on how much service charge to pay. Since the service charge is a cost you can adjust, it can't form the basis for a buy decision. As a shareholder you also have a right to sack the management company......

I thought that as an owner you will be a director in the management Co.Then management Co signs contract with various providers i.e security,garbage etc..and employs caretaker to oversee that service is being provided..if services are poor,providers are replaced?
butterflyke
#6 Posted : Friday, July 11, 2014 6:43:53 PM
Rank: Elder


Joined: 5/1/2010
Posts: 3,024
Location: Hapa
i concur with @GordonGekko. Usually the shareholders can elect an executive committee from among them to oversee the running of services together with the management company. So if the services are poor, shareholders can opt to get rid of them and get new ones.

it is also the case that the lower service charge is paid, the lower the quality of services provided as the service charge goes to pay the fee of the management agency and the service providers..it can be a bother
Float like a butterfly, sting like a bee. - Muhammad Ali🐝
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