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What happens to 6th floor apartments they can't sell?
Mujiza
#1 Posted : Monday, October 15, 2018 12:44:57 AM
Rank: New-farer


Joined: 9/1/2018
Posts: 19
Location: Kampala
In the last 10 years we have seen investors in the real estate sector competing to build apartment blocks and selling them to Kenyans and even foreigners. I'm sure they don't all get sold even after waiting 5 years.
What do they do with the ones they can't sell? Do they auction them off or do they hang on to them hoping to sell before Jesus returns? These apartments are probably the ones in the 5th and 6th floor that nobody wants because of the walk up involved.
Do they drop the price tag to make them more attractive to buyers?
Would it be possible to make an offer of far below market price for those 6th floor apartments?
MugundaMan
#2 Posted : Monday, October 15, 2018 1:45:00 AM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
Mujiza wrote:
In the last 10 years we have seen investors in the real estate sector competing to build apartment blocks and selling them to Kenyans and even foreigners. I'm sure they don't all get sold even after waiting 5 years.
What do they do with the ones they can't sell? Do they auction them off or do they hang on to them hoping to sell before Jesus returns? These apartments are probably the ones in the 5th and 6th floor that nobody wants because of the walk up involved.
Do they drop the price tag to make them more attractive to buyers?
Would it be possible to make an offer of far below market price for those 6th floor apartments?



But how sure are you they do not sell, my broda? Unless you mean the substandard apartment blocks built bila lifts or ventilation, beacon to beacon on 1/8th as Obiero says.
Horton
#3 Posted : Monday, October 15, 2018 7:08:27 AM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
MugundaMan wrote:
Mujiza wrote:
In the last 10 years we have seen investors in the real estate sector competing to build apartment blocks and selling them to Kenyans and even foreigners. I'm sure they don't all get sold even after waiting 5 years.
What do they do with the ones they can't sell? Do they auction them off or do they hang on to them hoping to sell before Jesus returns? These apartments are probably the ones in the 5th and 6th floor that nobody wants because of the walk up involved.
Do they drop the price tag to make them more attractive to buyers?
Would it be possible to make an offer of far below market price for those 6th floor apartments?



But how sure are you they do not sell, my broda? Unless you mean the substandard apartment blocks built bila lifts or ventilation, beacon to beacon on 1/8th as Obiero says.



Yes there are quite a few apartments not sold years after completion. Name that immediately comes to mind is One west in Parklands/westlands. I am sure u can haggle. Give em an offer an see how it goes.....what’s the worst they will do? Say no.....

PS ONE west isn’t what mugunda man describes as “substandard”
MugundaMan
#4 Posted : Monday, October 15, 2018 8:36:39 AM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
Horton wrote:

Yes there are quite a few apartments not sold years after completion. Name that immediately comes to mind is One west in Parklands/westlands. I am sure u can haggle. Give em an offer an see how it goes.....what’s the worst they will do? Say no.....

PS ONE west isn’t what mugunda man describes as “substandard”


@Horton
One West with apartments going for 32m a pop is on the other extreme, bro. It is understandable that such units will move slowly, but they are still moving. Remember real estate is the largest single purchase that the average Joe will make in their lifetime, and even if the money is available to pay cash for, the process of closing the deal (search/due diligence, sale agreement, deposit and lawyer fees, clearing final balance within 90 days, processing title/lease) takes time. I will give you the example of a certain company that builds very high rise high end apartments that retail at 25m off plan and 30m+ once complete. They typically take 4 yrs to build, so by the time they break ground, they have sold just a few units off-plan. By the time they are halfway done, maybe 30% are already sold. Upon completion maybe 50%, then takes another 1-2 years to sell the balance of the units. And these guys have such apartments all over Nairobi. Just because not all the units are sold does not mean the demand is not there. Remember also the capital accumulation process is an interesting one. If Mugundaman has bought your plot for 5m, he may temporarily not be able to buy anything for the next year or so, but as his income and capital accumulates over that year, he might be in a position to buy again the next year. Most investors in real estate are in fact repeat buyers in the sprawling middle to upper classes and are hence a theoretically unlimited source of demand over their lifetimes. This is why I keep saying the middle class is the bedrock of any economy and Kenya's middle class has reached a critical mass that will be hard to reverse in the coming decades. Bottom line unless we destroy the Kenyan economy (have a negative GDP growth rate) and destroy the construction industry (through punitive laws) and destroy the rapidly growing middle and upper classes, Kenya real estate demand is going away no time soon.
Mujiza
#5 Posted : Monday, October 15, 2018 5:09:34 PM
Rank: New-farer


Joined: 9/1/2018
Posts: 19
Location: Kampala
MugundaMan wrote:
Mujiza wrote:
In the last 10 years we have seen investors in the real estate sector competing to build apartment blocks and selling them to Kenyans and even foreigners. I'm sure they don't all get sold even after waiting 5 years.
What do they do with the ones they can't sell? Do they auction them off or do they hang on to them hoping to sell before Jesus returns? These apartments are probably the ones in the 5th and 6th floor that nobody wants because of the walk up involved.
Do they drop the price tag to make them more attractive to buyers?
Would it be possible to make an offer of far below market price for those 6th floor apartments?



But how sure are you they do not sell, my broda? Unless you mean the substandard apartment blocks built bila lifts or ventilation, beacon to beacon on 1/8th as Obiero says.

There are many apartment buildings that go to the 6th floor with no lifts. And if you ask realtors they will tell you that those are the hardest to sell. It's no fun walking up all those stairs you see.
Mujiza
#6 Posted : Monday, October 15, 2018 5:13:26 PM
Rank: New-farer


Joined: 9/1/2018
Posts: 19
Location: Kampala
Horton wrote:
MugundaMan wrote:
Mujiza wrote:
In the last 10 years we have seen investors in the real estate sector competing to build apartment blocks and selling them to Kenyans and even foreigners. I'm sure they don't all get sold even after waiting 5 years.
What do they do with the ones they can't sell? Do they auction them off or do they hang on to them hoping to sell before Jesus returns? These apartments are probably the ones in the 5th and 6th floor that nobody wants because of the walk up involved.
Do they drop the price tag to make them more attractive to buyers?
Would it be possible to make an offer of far below market price for those 6th floor apartments?



But how sure are you they do not sell, my broda? Unless you mean the substandard apartment blocks built bila lifts or ventilation, beacon to beacon on 1/8th as Obiero says.



Yes there are quite a few apartments not sold years after completion. Name that immediately comes to mind is One west in Parklands/westlands. I am sure u can haggle. Give em an offer an see how it goes.....what’s the worst they will do? Say no.....

PS ONE west isn’t what mugunda man describes as “substandard”

I always see ground, 1st,2nd and 3rd floors sold out. Even moving in to the 5th floor in a building without lifts is a stressful to think about.
I will make an offer to one property in Mavoko and see what happens
shocks
#7 Posted : Monday, October 15, 2018 5:16:54 PM
Rank: Member


Joined: 3/15/2009
Posts: 359
Horton wrote:
MugundaMan wrote:
Mujiza wrote:
In the last 10 years we have seen investors in the real estate sector competing to build apartment blocks and selling them to Kenyans and even foreigners. I'm sure they don't all get sold even after waiting 5 years.
What do they do with the ones they can't sell? Do they auction them off or do they hang on to them hoping to sell before Jesus returns? These apartments are probably the ones in the 5th and 6th floor that nobody wants because of the walk up involved.
Do they drop the price tag to make them more attractive to buyers?
Would it be possible to make an offer of far below market price for those 6th floor apartments?



But how sure are you they do not sell, my broda? Unless you mean the substandard apartment blocks built bila lifts or ventilation, beacon to beacon on 1/8th as Obiero says.



Yes there are quite a few apartments not sold years after completion. Name that immediately comes to mind is One west in Parklands/westlands. I am sure u can haggle. Give em an offer an see how it goes.....what’s the worst they will do? Say no.....

PS ONE west isn’t what mugunda man describes as “substandard”

Structural issues, tried to remedy them, destroyed the architecture
Gathige
#8 Posted : Monday, October 15, 2018 6:35:47 PM
Rank: Elder


Joined: 3/29/2011
Posts: 2,242
Mujiza wrote:
MugundaMan wrote:
Mujiza wrote:
In the last 10 years we have seen investors in the real estate sector competing to build apartment blocks and selling them to Kenyans and even foreigners. I'm sure they don't all get sold even after waiting 5 years.
What do they do with the ones they can't sell? Do they auction them off or do they hang on to them hoping to sell before Jesus returns? These apartments are probably the ones in the 5th and 6th floor that nobody wants because of the walk up involved.
Do they drop the price tag to make them more attractive to buyers?
Would it be possible to make an offer of far below market price for those 6th floor apartments?



But how sure are you they do not sell, my broda? Unless you mean the substandard apartment blocks built bila lifts or ventilation, beacon to beacon on 1/8th as Obiero says.

There are many apartment buildings that go to the 6th floor with no lifts. And if you ask realtors they will tell you that those are the hardest to sell. It's no fun walking up all those stairs you see.


Some floors are age restricted, unofficially. When the back begins to resist after 45, some of those floors can be come inaccessible.
"Things that matter most must never be at the mercy of things that matter least." Goethe
Mujiza
#9 Posted : Monday, October 15, 2018 7:16:34 PM
Rank: New-farer


Joined: 9/1/2018
Posts: 19
Location: Kampala
Gathige wrote:
Mujiza wrote:
MugundaMan wrote:
Mujiza wrote:
In the last 10 years we have seen investors in the real estate sector competing to build apartment blocks and selling them to Kenyans and even foreigners. I'm sure they don't all get sold even after waiting 5 years.
What do they do with the ones they can't sell? Do they auction them off or do they hang on to them hoping to sell before Jesus returns? These apartments are probably the ones in the 5th and 6th floor that nobody wants because of the walk up involved.
Do they drop the price tag to make them more attractive to buyers?
Would it be possible to make an offer of far below market price for those 6th floor apartments?



But how sure are you they do not sell, my broda? Unless you mean the substandard apartment blocks built bila lifts or ventilation, beacon to beacon on 1/8th as Obiero says.

There are many apartment buildings that go to the 6th floor with no lifts. And if you ask realtors they will tell you that those are the hardest to sell. It's no fun walking up all those stairs you see.


Some floors are age restricted, unofficially. When the back begins to resist after 45, some of those floors can be come inaccessible.

I would imagine as much. Hauling bundles of grocery shopping to the 6th floor or even mtungi ya gas is a herculean task.
I'll make a cash offer to one property and see what will happen.
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