Thank me later

The biggest problem with Kenyan real estate is the lack of data to objectively analyse returns. Claiming yields are 5-7% is over simplifying the issue. Real estate returns vary wildly between sectors. My suspicion is that for commercial grade investments, the malls, office space etc, the risk adjusted returns would be rather low and unlikely to keep up with or beat inflation. However, sectors such as short term rentals, and low income resi would likely outperform any equity portfolio there is. Personally, have some rental property generating net rental yields in excess of 20% with very little volatility in the rental income over lat 4 years. My risk adjusted returns are off the charts to say the least. However, I do note that real estate is also very cyclical and supply tends to overshoot demand. ie When there is great demand for real estate, it takes a while for the stock to be developed and delivered to market. Most investors will view this demand in isolation of the stock being developed and will they themselves start creating their own stock. When the supply finally hits the market, there is oversupply leading to a down cycle. Eventually, the demand will match supply and the cycle repeats. If you know how to read these cycles, you can do really well.\ That being said, research shows that the real estate should constitute at least 40% of a diversified portfolio consisting of equities bonds etc.

Hapo, umendanganya mercilessly. Who are you trying to hoodwink, your young bro ndio msifanane ama. . Simple math. Let 30% of your capital goes to land, =>7.5*0.3=2.25m very reasonable Balance construct =5.25m Construct bedsitters @ 200k all inclusive Total units=5250/200 Say 26units Let each out at say optimistic @ 3500/= totaling 26*3500=91 clean gs hata uko kwenu ushagu utapata hiyo Most likely 6500/ nairobi uko mwiki ama kasa Totalling 169 sparkling Gs Very pessimistic 12000/ buruuuu totalling 312gs, happy mca wa mburoti kwako. Nini wewe @wukan. Kwenu ni wabi hata hesabu ya mburoti inakugweza. Typically, a two bedroom apartment will measure 60 to 100sm, say 80sm, with a modest finishing this will cost 20k each sm such say to rent @ 30k in a modest estate. Pinching the figures down on my Casio scientifically🤒🤒😂😎 gives me 7,500,000/(80*20000)units*30,000 a month totalling 140,625.0/=post kugwaruzwa na fundi. Ety wukan uko shule gani ya hizi hesabu za present future cash flows hile sielewi. 7.5m hiyo sio modest apartment, even the market price for an apartment ukiwa umegongwa, iko chini tu.

Where in Nairobi can you 'buy/built' a house/flat for Kshs. 7.5m and get rent of 40k? Which neighborhood is that?

Hi ni gumu kidogo and returns usually depend on local demand which is hard to generalize. For instance I know a company in Kibiku that builds 3 bed maisonettes for around 7.5M and the rent is 40K. But this is a factor of the demand brought about by the Shinese constructing the SGR.