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L'e Mac - The First Residential Skycrapper in Kenya..
Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Seles83 wrote:Jamani wrote:Seles83 wrote:The fact that most of us cannot afford the project doesn't make less qualified to analyze the prospects of possible ROI and challenges of such kind of investments..
I see a trend that most luxury apartments and projects get severe beating or heavily criticized negatively without facts or even sound logic..
"Its not the most intelligent people that make it big in life..but the most responsive and adaptive of them all" The issue we are talking about is not affordability or beating luxury apartments for the sake of it as you state above rather we are questioning the value for money. Is there value investing KES 15 million for a one bedroom apartment? that is the issue. What do you reckon would be fair price for L'e Mac given the facilities and location? Talking about one bedroom, at KES 15 million is it value for money?
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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Talking about one bedroom, at KES 15 million is it value for money? What would be the fair price? More monies, more problems...
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Seles83 wrote:Talking about one bedroom, at KES 15 million is it value for money?
What would be the fair price? With that money you can get a 3 bedroom apartment within the vicinity. It is not fair value based on the current market, there are better options. On the other hand the current returns for rent on a one bedroom apartment will not march the investment
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Rank: Veteran Joined: 2/25/2009 Posts: 973
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Jamani wrote:Seles83 wrote:Talking about one bedroom, at KES 15 million is it value for money?
What would be the fair price? With that money you can get a 3 bedroom apartment within the vicinity. It is not fair value based on the current market, there are better options. On the other hand the current returns for rent on a one bedroom apartment will not march the investment Spot on! In fact,the least you should go for is a 2 br apartment around there,kilimani,lavington or kile.
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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Its going to be hard for prospective tenants not to be enticed by wonderful panaroma views from the apartments..just imagine having coffee or relaxing at any floor above 10 floor watching over westlands or city at night.. Honestly how many residential apartments can offer that... Go for a swim at 22 floor and chill out at top of 22 floor.. - This building is going to be a game changer for high end tenants and landlords... My only worries are many rules for tenants to create amble environs and high service charge for prospective investors/owners.. I cant say much about the price..but one thing i know the stakes have been raised up!! More monies, more problems...
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Rank: Member Joined: 8/5/2009 Posts: 597
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Jamani wrote:Seles83 wrote:Talking about one bedroom, at KES 15 million is it value for money?
What would be the fair price? With that money you can get a 3 bedroom apartment within the vicinity. It is not fair value based on the current market, there are better options. On the other hand the current returns for rent on a one bedroom apartment will not march the investment Having decipered the kind of target market then your question is somewhat misplaced, is it value for money for you and me? the genuin answer is NObut to the target market may be yes my be no. The problem with the world is that the intelligent people are full of doubts while the stupid ones are full of confidence
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Seles83 wrote:Its going to be hard for prospective tenants not to be enticed by wonderful panaroma views from the apartments..just imagine having coffee or relaxing at any floor above 10 floor watching over westlands or city at night.. Other buildings are being approved of similar height that might block the view
Honestly how many residential apartments can offer that... Very few indeed
Go for a swim at 22 floor and chill out at top of 22 floor.. Nice and relaxing
- This building is going to be a game changer for high end tenants and landlords... game changer but not value for money
My only worries are many rules for tenants to create amble environs and high service charge for prospective investors/owners...."high end tenants and landlords" will easily afford it
I cant say much about the price..but one thing i know the stakes have been raised up!! My issue is on price knowing what that money can get me around the same vicinity
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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QD wrote:Jamani wrote:Seles83 wrote:Talking about one bedroom, at KES 15 million is it value for money?
What would be the fair price? With that money you can get a 3 bedroom apartment within the vicinity. It is not fair value based on the current market, there are better options. On the other hand the current returns for rent on a one bedroom apartment will not march the investment Having decipered the kind of target market then your question is somewhat misplaced, is it value for money for you and me? the genuin answer is NObut to the target market may be yes my be no. It will be really hard to make an objective comparison...According to some valuers, they say such a building will attract a premium of 20-30% above the current market rates..for rents.. More monies, more problems...
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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Jamani wrote:Seles83 wrote:Jamani wrote:Seles83 wrote:The fact that most of us cannot afford the project doesn't make less qualified to analyze the prospects of possible ROI and challenges of such kind of investments..
I see a trend that most luxury apartments and projects get severe beating or heavily criticized negatively without facts or even sound logic..
"Its not the most intelligent people that make it big in life..but the most responsive and adaptive of them all" The issue we are talking about is not affordability or beating luxury apartments for the sake of it as you state above rather we are questioning the value for money. Is there value investing KES 15 million for a one bedroom apartment? that is the issue. What do you reckon would be fair price for L'e Mac given the facilities and location? Talking about one bedroom, at KES 15 million is it value for money? Sasa 1 brm, mtoto, housegirl watalala wapi? Unless you are targeting single people or the elderly. And the elderly would prefer somewhere with some garden and chirping birds. I think the way forward would be to furnish the apartment and run it like a hotel suite targeting business travellers. Then you compete with Sankara Hotel, Tribe etc. After all Le mac is designed like a hotel.
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Seles83 wrote:QD wrote:Jamani wrote:Seles83 wrote:Talking about one bedroom, at KES 15 million is it value for money?
What would be the fair price? With that money you can get a 3 bedroom apartment within the vicinity. It is not fair value based on the current market, there are better options. On the other hand the current returns for rent on a one bedroom apartment will not march the investment Having decipered the kind of target market then your question is somewhat misplaced, is it value for money for you and me? the genuin answer is NObut to the target market may be yes my be no. It will be really hard to make an objective comparison...According to some valuers, they say such a building will attract a premium of 20-30% above the current market rates..for rents.. Just as it is making the valuation, It all depends on which side the valuers are standing.....
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Rank: New-farer Joined: 7/9/2012 Posts: 63
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Jamani wrote:Prices are almost close to those of the prestigious Burj Khalifa.  Burj the cost is KES.110m http://www.burjkhalifaapartments.info/ If a free society cannot help the many who are poor, it cannot save the few who are rich.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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We get it wrong when we start talking about size with respect to this project. Is their selling point size? Is it cost? I guess not. Size and cost are mostly for lower level real estate market. I think that their selling point is convenience, uniqueness and exclusivity. This is a mini-Tatu with the advantage of being close to the city centre. The uniqueness of being the pioneer in the residential skyscraper is a big plus too. I believe they must have done their research. Expatriates, the rich(guys who wear 500k worth suits  ) would not mind being part of this exclusive residence. You can buy a coke soda 500ml at 60bob at a supermarket. The same soda will retail at 80bob in convenience shops located at petrol stations along highways. Is their product just the coke? NO! They're selling you the convenience! But I still don't get why the higher one goes in the building the more costly the prices. I would prefer to live in the lower floors.
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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lovenuffs wrote:Jamani wrote:Prices are almost close to those of the prestigious Burj Khalifa. Burj the cost is KES.110mhttp://www.burjkhalifaapartments.info/[/quote] Seles83 wrote:[quote=Jamani]Prices are almost close to those of the prestigious Burj Khalifa. http://www.arabianbusine...square-foot-444434.html
The current price is 2100 AED per Sq Foot. 1 AED=24Kes..L'e Mac 2bdr Appartment size 904.. =2100*24*904= 45.5Million, Lemac price for same place= 16M...Thats no where close.. which one is the correct price? when were those prices uploaded? what is the walk-in cash price?
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Lolest! wrote:We get it wrong when we start talking about size with respect to this project. Is their selling point size? Is it cost? I guess not. Size and cost are mostly for lower level real estate market. I think that their selling point is convenience, uniqueness and exclusivity. This is a mini-Tatu with the advantage of being close to the city centre. The uniqueness of being the pioneer in the residential skyscraper is a big plus too. I believe they must have done their research. Expatriates, the rich(guys who wear 500k worth suits ) would not mind being part of this exclusive residence. You can buy a coke soda 500ml at 60bob at a supermarket. The same soda will retail at 80bob in convenience shops located at petrol stations along highways. Is their product just the coke? NO! They're selling you the convenience! But I still don't get why the higher one goes in the building the more costly the prices. I would prefer to live in the lower floors. I agree with you, they are people who dont care about value for money and they will buy it.
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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lovenuffs wrote:[quote=Jamani]Prices are almost close to those of the prestigious Burj Khalifa. Burj the cost is KES.110m http://www.burjkhalifaapartments.info/[/quote] Have followed your link on Burj Khalifa and a 77 sqm (835 sqft) 1brm apartment is going for Ksh 78m (AED 3,282,000) or Ksh 93,400 per sqft. The annual rent is $29,947 or Ksh. 2.55m, a ROI of just 3.2%, which is shockingly low. This means Kenyan rents are extremely high with ROI of 7% (slightly more than double that of Burjkhalifa). http://www.burjkhalifaapartments.info/beautiful-one-bedroom-in-burj-khalifa-for-sale/http://www.burjkhalifaapartments.info/
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Is it not in a way saying that might not be the actual price?... or implies as someone started above that africa is the place to be..
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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My landlord is currently getting arround 3.2% ROI and considering my returns in Kenya... I can confidently say Africa is the new China..Wealth transfer happens in cycles ..my best gift is to be African and Kenyan. More monies, more problems...
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Seles83 wrote: My landlord is currently getting arround 3.2% ROI and considering my returns in Kenya... I can confidently say Africa is the new China..Wealth transfer happens in cycles ..my best gift is to be African and Kenyan. Your landlord must have bought an overpriced unit, just as L'e Mac is and he now faces the market reality poor returns on investment. Others are averaging 7%..... Value for money.
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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Jamani wrote:Seles83 wrote: My landlord is currently getting arround 3.2% ROI and considering my returns in Kenya... I can confidently say Africa is the new China..Wealth transfer happens in cycles ..my best gift is to be African and Kenyan. Your landlord must have bought an overpriced unit, just as L'e Mac is and he now faces the market reality poor returns on investment. Others are averaging 7%..... Value for money. I am not based in Kenya mate! More monies, more problems...
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Seles83 wrote:Jamani wrote:Seles83 wrote: My landlord is currently getting arround 3.2% ROI and considering my returns in Kenya... I can confidently say Africa is the new China..Wealth transfer happens in cycles ..my best gift is to be African and Kenyan. Your landlord must have bought an overpriced unit, just as L'e Mac is and he now faces the market reality poor returns on investment. Others are averaging 7%..... Value for money. I am not based in Kenya mate! Ooops! yeah me too
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