Thanks. Let me clarify further :-
Mr P has bought 1/8 acres of red solid soli land for the purpose of developing for rental or outright sale at a later date in Nairobi upcoming suburb (lika Thika road for example).
1st ScenerioMr P can build a twin( by side by side) three bedroom bungalows on the land for
2 tenants occupation2nd ScenerioMr P can build a duplex that is one on top of the other for single tenant,that is sitting room and kitchen on the ground floor and 3 bed rooms on top (upstairs).
Assumptions
The build up area of twin bungalows is half the size of build up area of the duplex. In my previous illustration I mentioned that
if the build up area of the twin bungalow is 600 square meters, that of the duplex is 300 square meters
on the same plot.CONCLUSIONS
(i) The combined rental income of two tenants in the twin bungalows is most often
less than the rental income from a single tenant in the duplex.
(ii) The outright sales value of the twin bungalow sold together is often
less than the sales value of the single duplex all on the same plot size.
(iii) The cost of constructing the twin bungalow is often
higher than that of constructing a duplex.
QUESTION TO EXPERTS
Is this always true ? This will help me make an informed decision now and in the future.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .