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Low End Housing: High Risk, High Return
Rank: New-farer Joined: 8/16/2017 Posts: 20
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Jon_Gray wrote: I have a couple of questions on low cost/affordable housing. This is not entirely low cost housing but what is the profit a developer is expecting from a project like this in Milimani Kitegela? Assuming the plot is 1M and the build is 4.5M the profit should be 2.0M (offered for sale at 6.5M). Is this what people are clearing? And at this price range, how long are developers waiting to clear the houses? Pictures won't post but I am thinking of a 3 bedroom bungalow with standard finishes and 1 bedroom ensuite that are listed on OLX between 6M and 8M.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Jon_Gray wrote:Jon_Gray wrote:I have a couple of questions on low cost/affordable housing. This is not entirely low cost housing but what is the profit a developer is expecting from a project like this in Milimani Kitegela? Assuming the plot is 1M and the build is 4.5M the profit should be 2.0M (offered for sale at 6.5M). Is this what people are clearing? And at this price range, how long are developers waiting to clear the houses? Pictures won't post but I am thinking of a 3 bedroom bungalow with standard finishes and 1 bedroom ensuite that are listed on OLX between 6M and 8M. In my thinking, low end housing is only profitable if adopted for rental purposes.. Selling may not earn one reasonable returns, since it's unlikely to get anyone who wants to buy anything less than a 2 bedroom house
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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GoK now takes the path of volumes http://www.businessdaily...17348-l9a2avz/index.html
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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[quote=obiero]GoK now takes the path of volumes http://www.businessdaily...7348-l9a2avz/index.html[/quote] This is a project - if implemented to completion - stands to eradicate poverty in this Nation Kenya in the future. You can read about how housing is correlated to poverty in a book titled: "Evicted - poverty and profit in the American city" reviewed by Bill Gates here: LINKDumb money becomes dumb only when it listens to smart money
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Fyatu wrote:[quote=obiero]GoK now takes the path of volumes http://www.businessdaily...7348-l9a2avz/index.html[/quote] This is a project - if implemented to completion - stands to eradicate poverty in this Nation Kenya in the future. You can read about how housing is correlated to poverty in a book titled: "Evicted - poverty and profit in the American city" reviewed by Bill Gates here: LINK I agree @Fyatu.... Very very true. http://www.businesstoday...yojana/story/263853.htmlpossunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Possibility of funds embezzlement will be at an all time high, but if they manage even 50% of the forecast, Kenya will be a better place to live in
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 2/20/2015 Posts: 467 Location: Nairobi
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obiero wrote:Possibility of funds embezzlement will be at an all time high, but if they manage even 50% of the forecast, Kenya will be a better place to live in " Out of this number, 800,000 affordable housing units will be delivered under public private partnerships (PPPS) while 200,000 will be social housing." What the above means is that GoK plans to build only 200,000 slum upgrading houses in Kibera, Mathare and any house you build privately in Syokimau, Kitengela or built by Erdeman or Suraya GoK will claim it in it's 5 year achievement.
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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kawi254 wrote:obiero wrote:Possibility of funds embezzlement will be at an all time high, but if they manage even 50% of the forecast, Kenya will be a better place to live in " Out of this number, 800,000 affordable housing units will be delivered under public private partnerships (PPPS) while 200,000 will be social housing." What the above means is that GoK plans to build only 200,000 slum upgrading houses in Kibera, Mathare and any house you build privately in Syokimau, Kitengela or built by Erdeman or Suraya GoK will claim it in it's 5 year achievement. @kawi, Very true. 200,000 housing for GOK is a drop in the ocean. The housing problem can easily be addressed if both the central government and county governments addressed the infrastructural issues that hinder housing development. If new housing areas were opened up by providing infrastructure such as power, roads, water, sewer systems etc in designated areas, people would move in and even develop own structures. Kajiado and Machakos Counties alone cah house the whole of nbi but the infrastructure in non existent. Houses done on PPPS will not be affordable to the majority. Those buying expensive houses can still afford to build on their own. The rest have no means to buy, but if facilitated, they can own houses too. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Gathige wrote:kawi254 wrote:obiero wrote:Possibility of funds embezzlement will be at an all time high, but if they manage even 50% of the forecast, Kenya will be a better place to live in " Out of this number, 800,000 affordable housing units will be delivered under public private partnerships (PPPS) while 200,000 will be social housing." What the above means is that GoK plans to build only 200,000 slum upgrading houses in Kibera, Mathare and any house you build privately in Syokimau, Kitengela or built by Erdeman or Suraya GoK will claim it in it's 5 year achievement. @kawi, Very true. 200,000 housing for GOK is a drop in the ocean. The housing problem can easily be addressed if both the central government and county governments addressed the infrastructural issues that hinder housing development. If new housing areas were opened up by providing infrastructure such as power, roads, water, sewer systems etc in designated areas, people would move in and even develop own structures. Kajiado and Machakos Counties alone cah house the whole of nbi but the infrastructure in non existent. Houses done on PPPS will not be affordable to the majority. Those buying expensive houses can still afford to build on their own. The rest have no means to buy, but if facilitated, they can own houses too. That is the sad reality.. Even most of the so called middle class cannot afford to build their own homes
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 11/13/2015 Posts: 1,587
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Gathige wrote:kawi254 wrote:obiero wrote:Possibility of funds embezzlement will be at an all time high, but if they manage even 50% of the forecast, Kenya will be a better place to live in " Out of this number, 800,000 affordable housing units will be delivered under public private partnerships (PPPS) while 200,000 will be social housing." What the above means is that GoK plans to build only 200,000 slum upgrading houses in Kibera, Mathare and any house you build privately in Syokimau, Kitengela or built by Erdeman or Suraya GoK will claim it in it's 5 year achievement. @kawi, Very true. 200,000 housing for GOK is a drop in the ocean. The housing problem can easily be addressed if both the central government and county governments addressed the infrastructural issues that hinder housing development. If new housing areas were opened up by providing infrastructure such as power, roads, water, sewer systems etc in designated areas, people would move in and even develop own structures. Kajiado and Machakos Counties alone cah house the whole of nbi but the infrastructure in non existent. Houses done on PPPS will not be affordable to the majority. Those buying expensive houses can still afford to build on their own. The rest have no means to buy, but if facilitated, they can own houses too. Good initiative but 200k housing units is stuff of Alice in wonderland. The biggest GoK affordable housing project delivered only 656 housing units at Ngara cost around 2.2b and took monkey years to complete. The proposed pilot project at Mavoko for 8k units will retail around 2.7m-3.5m. How many low income people will afford that? It will eventually morph into Umoja like slum.
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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obiero wrote:Gathige wrote:kawi254 wrote:obiero wrote:Possibility of funds embezzlement will be at an all time high, but if they manage even 50% of the forecast, Kenya will be a better place to live in " Out of this number, 800,000 affordable housing units will be delivered under public private partnerships (PPPS) while 200,000 will be social housing." What the above means is that GoK plans to build only 200,000 slum upgrading houses in Kibera, Mathare and any house you build privately in Syokimau, Kitengela or built by Erdeman or Suraya GoK will claim it in it's 5 year achievement. @kawi, Very true. 200,000 housing for GOK is a drop in the ocean. The housing problem can easily be addressed if both the central government and county governments addressed the infrastructural issues that hinder housing development. If new housing areas were opened up by providing infrastructure such as power, roads, water, sewer systems etc in designated areas, people would move in and even develop own structures. Kajiado and Machakos Counties alone cah house the whole of nbi but the infrastructure in non existent. Houses done on PPPS will not be affordable to the majority. Those buying expensive houses can still afford to build on their own. The rest have no means to buy, but if facilitated, they can own houses too. That is the sad reality.. Even most of the so called middle class cannot afford to build their own homes Building houses for people who are being retrenched as firms/industries downsize and other shutting down Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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@Obiero it's been a while with the updates  Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Pesa Nane wrote:@Obiero it's been a while with the updates @pesanane Money dried up! Now at the second floor. Thinking of finishing up the completed units and getting tenants, then continue with construction of the two remaining floors later on
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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obiero wrote:Pesa Nane wrote:@Obiero it's been a while with the updates @pesanane Money dried up! Now at the second floor. Thinking of finishing up the completed units and getting tenants, then continue with construction of the two remaining floors later on  Victory belongs to those who dare; those who are brave. All the best & feel free to throw in a photo or two Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Pesa Nane wrote:obiero wrote:Pesa Nane wrote:@Obiero it's been a while with the updates @pesanane Money dried up! Now at the second floor. Thinking of finishing up the completed units and getting tenants, then continue with construction of the two remaining floors later on Victory belongs to those who dare; those who are brave. All the best & feel free to throw in a photo or two Amen..
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Started plaster and looking to effect finishing on ground units.. God is good  Bird's eye view from the second floor 
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 10/26/2008 Posts: 380
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Good work..
You seem to be using only a small portion of the land - any specific reason for this?
Also, you mentioned view from second floor - can you share some newer photos?
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Mkimwa wrote:Good work..
You seem to be using only a small portion of the land - any specific reason for this?
Also, you mentioned view from second floor - can you share some newer photos?
Asante @mkimwa.. The reason is because that's the first block of three as per pictorial below 
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Finishing up on the ground units.. Wakati wa plaster imefika  
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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