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Looking for land in Kisumu
Rank: Hello Joined: 2/14/2013 Posts: 7 Location: Pretoria
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We are a group of 20 serious and like minded people looking for a piece of land in Kisumu. The plan is to buy some land (between 1/2 and 1 acre) and build 1 and or 2 bed low to medium income rentals without borrowing from a bank as interest rates are too high. We want to achieve maximum return on investment and build the rental/sale property portfolio over say 5 years that can give a decent return on investment. Questions we have are:
1. Which areas are suitable and what are the costs per acre/plot etc?
2. What are approximate construction costs?
3. Given the high rate of "creative" fraud in many GOK land offices in Kenya today, how does one apply appropriate due diligence in ensuring no nasty issues are confronted at any point later in time.
4. Is the real estate property bubble about to burst in Kisumu as indicated for Nairobi recently on similar issues?
5. Are there any real offers out there for clean transactions?
6. What are the annual land appreciation rates in Kisumu?
7. What are the reasonable viability investment options?
We will be happy to get any feedback and will share experiences we have on this forum.
Thanks!
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Rank: Member Joined: 9/9/2015 Posts: 233
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Sorry, I digress but are you fixed on Kisumu? Is security there best you can get than say Nbi/Nakuru? Are you interested in value addition? Other towns are growing faster. Are you ok with hooliganism/looting/thuggery? Kisumu leads in those vices. Last I was there I learnt that shops close at 5 coz people must be at home by 6 otherwise they may get attacked by robbers. "Buy when there's blood in the streets, even if the blood is your own."
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Rank: Member Joined: 9/9/2015 Posts: 233
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Kisumu residents are the most trigger happy rioters and looters. Good luck "Buy when there's blood in the streets, even if the blood is your own."
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Rank: New-farer Joined: 6/22/2015 Posts: 51 Location: Nairobi
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The Great wrote:Sorry, I digress but are you fixed on Kisumu? Is security there best you can get than say Nbi/Nakuru? Are you interested in value addition? Other towns are growing faster. Are you ok with hooliganism/looting/thuggery? Kisumu leads in those vices. Last I was there I learnt that shops close at 5 coz people must be at home by 6 otherwise they may get attacked by robbers. I was expecting this kind of response only it came a little later.No one asked for your opinion or advise on the security of people or shops in Kisumu. Its better you have admitted the fact that your response is outright deviation from the subject.You are not 'the great' in anyway.Drop it. A Theory of Everything.
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Rank: Elder Joined: 10/3/2008 Posts: 4,057 Location: Gwitu
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Oh sorry...I didnt read it well and thought the thread was about how to land in Kisumu. Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
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Rank: New-farer Joined: 7/12/2016 Posts: 39 Location: Nairobi
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As a so called 'foreigner' having lived & worked in & around Kisumu over the past 9 years this over generalized view of Kisumu is utterly false.
Its all about location. In Nairobi insecurity would be an issue in parts of Eastlands but calm in other areas. Same with Kisumu in Kondele & Obunga while other areas are calm.
The opportunity for outsized returns are all there. There is no bubble as demand for appropriately priced housing with all amenities exceeds supply. Just search for @pennystockers posts on his 4 family 3bedrooms two baths he put up in Kisumu where he's laughing all the way to the bank.
As to issues of land please tread carefully in Kisumu. I have a friend who is currently paying a loan taken to purchase land from a fraud. You may probably have to use the well established estate agencies in Kisumu but be prepared to pay a premium for this service.
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Rank: Elder Joined: 6/23/2009 Posts: 13,517 Location: nairobi
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Surething wrote:As a so called 'foreigner' having lived & worked in & around Kisumu over the past 9 years this over generalized view of Kisumu is utterly false.
Its all about location. In Nairobi insecurity would be an issue in parts of Eastlands but calm in other areas. Same with Kisumu in Kondele & Obunga while other areas are calm.
The opportunity for outsized returns are all there. There is no bubble as demand for appropriately priced housing with all amenities exceeds supply. Just search for @pennystockers posts on his 4 family 3bedrooms two baths he put up in Kisumu where he's laughing all the way to the bank.
As to issues of land please tread carefully in Kisumu. I have a friend who is currently paying a loan taken to purchase land from a fraud. You may probably have to use the well established estate agencies in Kisumu but be prepared to pay a premium for this service.
I lived there and its true that robberies are rampant relative to the size of Kisumu. Its generally not secure but you can survive if you do not expose yourself to late hours. Property demand is high and rental income is good.. NHC are setting up units at Kanyakwar www.nhckenya.co.ke
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 1/20/2015 Posts: 489 Location: Nairobi
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aljazeera wrote:The Great wrote:Sorry, I digress but are you fixed on Kisumu? Is security there best you can get than say Nbi/Nakuru? Are you interested in value addition? Other towns are growing faster. Are you ok with hooliganism/looting/thuggery? Kisumu leads in those vices. Last I was there I learnt that shops close at 5 coz people must be at home by 6 otherwise they may get attacked by robbers. I was expecting this kind of response only it came a little later.No one asked for your opinion or advise on the security of people or shops in Kisumu. Its better you have admitted the fact that your response is outright deviation from the subject.You are not 'the great' in anyway.Drop it. Dont sound rude, security seriously affects any investment....so dont look at their opinions as tribal and bigotted. Please, learn never to be arrogant.......google a place called Riat Hills, its one good place with the potential of expanding and its some how posh posh!! Enjoy every moment of your life, you never know when your time will come.
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Rank: Hello Joined: 2/14/2013 Posts: 7 Location: Pretoria
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The Great wrote:Kisumu residents are the most trigger happy rioters and looters. Good luck @ TheGreat, your response labelling Kisumu residents as trigger happy rioters and looters is completely misplaced here. It would perhaps be more useful if you answered asked questions (if you have any answers/experience).
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Jalul wrote:The Great wrote:Kisumu residents are the most trigger happy rioters and looters. Good luck @ TheGreat, your response labelling Kisumu residents as trigger happy rioters and looters is completely misplaced here. It would perhaps be more useful if you answered asked questions (if you have any answers/experience). Security is a genuine concern for Kisumu investors. I have not visited the city personally but I have seen on news businesses burnt (Kimwa), looted (supermarkets) even a stature destroyed. Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 13,517 Location: nairobi
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sparkly wrote:Jalul wrote:The Great wrote:Kisumu residents are the most trigger happy rioters and looters. Good luck @ TheGreat, your response labelling Kisumu residents as trigger happy rioters and looters is completely misplaced here. It would perhaps be more useful if you answered asked questions (if you have any answers/experience). Security is a genuine concern for Kisumu investors. I have not visited the city personally but I have seen on news businesses burnt (Kimwa), looted (supermarkets) even a stature destroyed. Stature or statue.. :)
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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obiero wrote:sparkly wrote:Jalul wrote:The Great wrote:Kisumu residents are the most trigger happy rioters and looters. Good luck @ TheGreat, your response labelling Kisumu residents as trigger happy rioters and looters is completely misplaced here. It would perhaps be more useful if you answered asked questions (if you have any answers/experience). Security is a genuine concern for Kisumu investors. I have not visited the city personally but I have seen on news businesses burnt (Kimwa), looted (supermarkets) even a stature destroyed. Stature or statue.. :) Kisungu ilikuja na meli. Statue it is. Life is short. Live passionately.
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Rank: Member Joined: 10/31/2010 Posts: 154
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Jalul, Penny here! I'll speak of what I know, as of last December last year when I was last in Kisumu. Disclusre: I'm a Kisumu guy...raised there! I have rental properties there as well!1. Which areas are suitable Nyamasaria, Riat & Kajulu Hills and what are the costs per acre/plot etc? Very very expensive - 3m/acre and that's if you are lucky2. What are approximate construction costs? Ksh. 25 - 30 per square meter. This will depend on finishes and other factors3. Given the high rate of "creative" fraud in many GOK land offices in Kenya today, how does one apply appropriate due diligence in ensuring no nasty issues are confronted at any point later in time. Don't touch the brokers, yes even with a ten foot pole. Run the other way when you see one. If you can, and it's not easy, find the land owner and deal directly. Takes some networking to achieve this.4. Is the real estate property bubble about to burst in Kisumu as indicated for Nairobi recently on similar issues? Affordable housing is still a challenge in Kisumu. I don't think we'll be seeing a burst anytime soon. Key word, affordable.5. Are there any real offers out there for clean transactions? Yes! refer to my answer to #3 above6. What are the annual land appreciation rates in Kisumu? 15% - 20% based on my experience 7. What are the reasonable viability investment options? Don't limit yourself. Don't listen to nay sayers mara Kisumu this oh Kisumu that! Once again, these are my opinions and should not be taken as professional advice.
Regards,
Penny!“None but ourselves can free our minds.”
- Bob Marley
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Rank: Hello Joined: 2/14/2013 Posts: 7 Location: Pretoria
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Penny-Stocker wrote:Jalul, Penny here! I'll speak of what I know, as of last December last year when I was last in Kisumu. Disclusre: I'm a Kisumu guy...raised there! I have rental properties there as well!
1. Which areas are suitable Nyamasaria, Riat & Kajulu Hills and what are the costs per acre/plot etc? Very very expensive - 3m/acre and that's if you are lucky
2. What are approximate construction costs?Ksh. 25 - 30 per square meter. This will depend on finishes and other factors
3. Given the high rate of "creative" fraud in many GOK land offices in Kenya today, how does one apply appropriate due diligence in ensuring no nasty issues are confronted at any point later in time.Don't touch the brokers, yes even with a ten foot pole. Run the other way when you see one. If you can, and it's not easy, find the land owner and deal directly. Takes some networking to achieve this.
4. Is the real estate property bubble about to burst in Kisumu as indicated for Nairobi recently on similar issues?Affordable housing is still a challenge in Kisumu. I don't think we'll be seeing a burst anytime soon. Key word, affordable.
5. Are there any real offers out there for clean transactions?Yes! refer to my answer to #3 above
6. What are the annual land appreciation rates in Kisumu?15% - 20% based on my experience
7. What are the reasonable viability investment options? Don't limit yourself.
Don't listen to nay sayers mara Kisumu this oh Kisumu that! Once again, these are my opinions and should not be taken as professional advice.
Regards,
Penny!
Thanks @Penny-Stocker for the heads up and encouragement. Much appreciated!
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Rank: Member Joined: 6/21/2010 Posts: 345 Location: easto
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Penny-Stocker wrote:Jalul, Penny here! I'll speak of what I know, as of last December last year when I was last in Kisumu. Disclusre: I'm a Kisumu guy...raised there! I have rental properties there as well!
1. Which areas are suitable Nyamasaria, Riat & Kajulu Hillsand what are the costs per acre/plot etc? Very very expensive - 3m/acre and that's if you are lucky
Is that correct, 3M per acre? Just crosschecking the figures. In Eldoret..places with such rental returns are think 4-6 times that..someone I know recently bought a quarter an acre @6M "The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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Rank: Member Joined: 4/15/2008 Posts: 202
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Rank: New-farer Joined: 7/12/2016 Posts: 39 Location: Nairobi
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These smaller towns particularly those that are county HQ's are especially competitive when it comes to cost of land relative to location & availability of utilities as compared to Nairobi & its environs.
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