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Low End Housing: High Risk, High Return
Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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Swenani wrote:Fullykenyan wrote:Swenani wrote:Fullykenyan wrote:obiero wrote:winmak wrote:obiero wrote:kayhara wrote:What's the definition of low class? I just met a Mombasa guy with
28 Swahili houses, he tells me each cost him an average of 3.5 million to build including a borehole for each. so that's about 98 million.
each house has 10 small one bedroom going for 8,000 each including water,
so each house income per month is ksh. 80,000/-
all 28 houses is ksh. 2,240,000
assuming he built them all in one year? (he built over 5 years) it will take him only 3.5 years to recoup his investments, that's assuming the rent is constant.
well.... Low end refers to the target market not the landlord.. There are 4 different seven storied bedsitter units in Pipeline with 10 houses per floor owned by the immediate former Governor that earn him an average of KES 2,380,000 monthly from rent of KES 8,500 per flat Wow, now I didn't know he had interests in such.. Now @Obiero, I am prospecting, I want an 8th in areas of Kasarani or such like neighborhoods to build a rental flat in the next 3 years. How much do the high traffic areas go for? and would you advice me to go for this area or are there other lucrative areas? (I had been adviced on Kinoo , Gachie... but I fear those areas) @winmak last I checked, from Sunton, Clayworks, Seasons going to main centre at Kasarani you will need KES 8,500,000 for a plain 1/8 acre. Mwiki headed down to Kangundo road budget for KES 3,500,000 to KES 6,000,000 Kitengela there is no land for sale from 1st to 3rd row all the way upto Yukos. Fourth row is available at KES 5,500,000, but being a victim of an intricate land fraud in the county dating back to 2009, I will not lead anyone to invest in the area. Im still in court! These prices are equivalent to the price of land in Germany, where you have all the roads tarmacked, electricity and water on site. Something is wrong in kenya. You can't compare Kenya with a shithole country in Europe  I have realised that albeit too late . @Swenani, do you know of anyoned selling land in Masaku? No, but if you can consider my unsolicited advice and if you are buying for long term, my opinion is that you consider some of these counties; Isiolo(Isiolo town), Uasin Gishu(Eldoret town),Lamu(Lamu Town) Busia(Busia Town) and Bungoma(Bungoma and/or Malaba town). These towns will not be the same in the next 10-15 years especially if SGR and lapset projects are realized True. Those towns are to be watched. Suswa must also not be left out of the prospective buy areas. Only problem is that you may end up on the tectonic plate fault line, nyumba ikatwe na Mungu katikati.. Worst possible nightmare of any real estate investor
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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Swenani wrote:Fullykenyan wrote:Swenani wrote:Fullykenyan wrote:obiero wrote:winmak wrote:obiero wrote:kayhara wrote:What's the definition of low class? I just met a Mombasa guy with
28 Swahili houses, he tells me each cost him an average of 3.5 million to build including a borehole for each. so that's about 98 million.
each house has 10 small one bedroom going for 8,000 each including water,
so each house income per month is ksh. 80,000/-
all 28 houses is ksh. 2,240,000
assuming he built them all in one year? (he built over 5 years) it will take him only 3.5 years to recoup his investments, that's assuming the rent is constant.
well.... Low end refers to the target market not the landlord.. There are 4 different seven storied bedsitter units in Pipeline with 10 houses per floor owned by the immediate former Governor that earn him an average of KES 2,380,000 monthly from rent of KES 8,500 per flat Wow, now I didn't know he had interests in such.. Now @Obiero, I am prospecting, I want an 8th in areas of Kasarani or such like neighborhoods to build a rental flat in the next 3 years. How much do the high traffic areas go for? and would you advice me to go for this area or are there other lucrative areas? (I had been adviced on Kinoo , Gachie... but I fear those areas) @winmak last I checked, from Sunton, Clayworks, Seasons going to main centre at Kasarani you will need KES 8,500,000 for a plain 1/8 acre. Mwiki headed down to Kangundo road budget for KES 3,500,000 to KES 6,000,000 Kitengela there is no land for sale from 1st to 3rd row all the way upto Yukos. Fourth row is available at KES 5,500,000, but being a victim of an intricate land fraud in the county dating back to 2009, I will not lead anyone to invest in the area. Im still in court! These prices are equivalent to the price of land in Germany, where you have all the roads tarmacked, electricity and water on site. Something is wrong in kenya. You can't compare Kenya with a shithole country in Europe I have realised that albeit too late . @Swenani, do you know of anyoned selling land in Masaku? No, but if you can consider my unsolicited advice and if you are buying for long term, my opinion is that you consider some of these counties; Isiolo(Isiolo town), Uasin Gishu(Eldoret town),Lamu(Lamu Town) Busia(Busia Town) and Bungoma(Bungoma and/or Malaba town). These towns will not be the same in the next 10-15 years especially if SGR and lapset projects are realized True. Those towns are to be watched. Suswa must also not be left out of the prospective buy areas. Only problem is that you may end up on the tectonic plate fault line, nyumba ikatwe na Mungu katikati.. Worst possible nightmare of any real estate investor
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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Points to note: 1. Do not start your project without all approvals in hand 2. Bulk purchase of building materials will save you big time, though you will need a 'trusted' foreman to control stock 3. The head fundi shall become closer than a friend during construction. You have to trust that person and change them very early incase of any doubt in their ability 4. Accounting for all supplies will have to be religious, otherwise you may start to believe that someone is stealing, unfounded 5. Labor costs will scare you stiff, but good labor has never been cheap. Foreman current rates should average daily at KES 1,500; fundi KES 1,000 and laborers at KES 450 6. Try to always challenge the thought pattern of your project team. Obviously you will not over-ride the professionals, but learn to question their suggestions based on logic 7. Finishing could actually finish you due to the costs, hence you have to be very hands-on at the stated stage 8. Labor cost on tile work should be based on square meters and the current going rate is not more than KES 250/sqm 9. If site doesn't have water or electricity connections, it is important to start chasing for the same as work progresses on site, else you may end up with a ready unit that has no utilities 10. When transporting expensive/fragile items such as steel/tiles, better be ready to pay professional couriers for weight exceeding 2tonnes. Don't attempt to use normal transporters unless you are ready to suffer losses; and insure the stock-in-transit, if necessary
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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A journey of a thousand miles starts with one step..
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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Chaka wrote:Itatosea ikisimamiswa. .I stand collected though.. hardwood wrote:Sofa set itatosea hiyo mlango kweli? Hehe. Nugus
KQ ABP 4.26
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Rank: Member Joined: 7/27/2014 Posts: 560 Location: Eastlando
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Swenani wrote:Fullykenyan wrote:Swenani wrote:Fullykenyan wrote:obiero wrote:winmak wrote:obiero wrote:kayhara wrote:What's the definition of low class? I just met a Mombasa guy with
28 Swahili houses, he tells me each cost him an average of 3.5 million to build including a borehole for each. so that's about 98 million.
each house has 10 small one bedroom going for 8,000 each including water,
so each house income per month is ksh. 80,000/-
all 28 houses is ksh. 2,240,000
assuming he built them all in one year? (he built over 5 years) it will take him only 3.5 years to recoup his investments, that's assuming the rent is constant.
well.... Low end refers to the target market not the landlord.. There are 4 different seven storied bedsitter units in Pipeline with 10 houses per floor owned by the immediate former Governor that earn him an average of KES 2,380,000 monthly from rent of KES 8,500 per flat Wow, now I didn't know he had interests in such.. Now @Obiero, I am prospecting, I want an 8th in areas of Kasarani or such like neighborhoods to build a rental flat in the next 3 years. How much do the high traffic areas go for? and would you advice me to go for this area or are there other lucrative areas? (I had been adviced on Kinoo , Gachie... but I fear those areas) @winmak last I checked, from Sunton, Clayworks, Seasons going to main centre at Kasarani you will need KES 8,500,000 for a plain 1/8 acre. Mwiki headed down to Kangundo road budget for KES 3,500,000 to KES 6,000,000 Kitengela there is no land for sale from 1st to 3rd row all the way upto Yukos. Fourth row is available at KES 5,500,000, but being a victim of an intricate land fraud in the county dating back to 2009, I will not lead anyone to invest in the area. Im still in court! These prices are equivalent to the price of land in Germany, where you have all the roads tarmacked, electricity and water on site. Something is wrong in kenya. You can't compare Kenya with a shithole country in Europe I have realised that albeit too late . @Swenani, do you know of anyoned selling land in Masaku? No, but if you can consider my unsolicited advice and if you are buying for long term, my opinion is that you consider some of these counties; Isiolo(Isiolo town), Uasin Gishu(Eldoret town),Lamu(Lamu Town) Busia(Busia Town) and Bungoma(Bungoma and/or Malaba town). These towns will not be the same in the next 10-15 years especially if SGR and lapset projects are realized Thanks Swenani
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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A journey of a thousand miles starts with one step.. It is finished The end..
KQ ABP 4.26
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Rank: Member Joined: 12/17/2007 Posts: 53
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👏👏👏 impressive and congratulations
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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dsktop wrote:👏👏👏 impressive and congratulations Asante. Happy too with the outcome.. Took three years but the journey was worth every step.. Completed only one block out of the plan for three, but I doubt whether I have appetite for the extra four storied blocks.. I'm heading back to the securities exchange
KQ ABP 4.26
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Low End Housing: High Risk, High Return
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