tnai9 wrote:UpcomingPaperChaser wrote:Go to Bamburi in Mombasa. You can easily get a 1/4 acre for 3 million. With the remaining 9 million, build 9 hgihg standard bedsitters at 1 million each. a nicely finished bedsitter goes for 7-10k here, so we are looking at a gross monthly return of between 63 - 90k per month.
The advantage of this avenue is that, 9 bedsitters will barely occupy 1/8th of an acre. That means you will still have another 1/8th of an acre awaiting development in the future.
Another advantage is that the bedsitters will occupy the ground floor hence leaving you with room for additional floors upwards.
If you are serious with this, i could carry out a detailed feasibility study for you with figures and numbers involved.
@PaperChaser,
We are only allowed to buy residential houses otherwise commercial property was the way to go.
I have narrowed down to two options
The apartment on Mbagathi way, majorly because of location and anticipated capital gain and the Houses in the County HQ coz of slightly higher returns and a lower initial cost.
Where are the investment analysts?
For the Mbagathi apartments, you say the rent is about 55k, you forgot to factor in service charges which is compulsory in apartments. so we are looking at about 10k off the 50k.......
As for teh county one, you ought to realize that capital appreciation outside the biggest towns in kenya is very minimal. so for a 12 million house, you might find it to be worth only 15 million in ten years time.......
option of last resort, scout for those Mombasa Road apartments going for 4 - 4.5 million like Sunset Boulevard and Sheshe where the rent is about 20 - 25k per month, for 12 million, buy 3 of them. hence an anticipated gross income of between 60 - 75k. the advantage of this is that the appreciation will be threefold as each apartment will appreciate in value independently!!!!
Enjoy every moment of your life, you never know when your time will come.