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hello
#1 Posted : Thursday, March 31, 2011 10:22:20 AM
Rank: Member


Joined: 6/11/2008
Posts: 257
If you buy a 3 bedroom flat ~ size 1450 to 1500 sq ft.

Currently they are going for 12.5m to 13.5m in Parklands, Westlands, Lavington and in many other areas. With so many facilities i.e. Gym, S.pool, D sq, Dstv and many more.

The questions are

In this economy or may be after 3 to 5 years do you see any capital gain?

How rental market will effect currently rents are from 45k to 60k.

How do you see it after 3 to 5 years.





I want to be a millionaire.
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bwenyenye
#2 Posted : Thursday, March 31, 2011 11:02:51 AM
Rank: Elder


Joined: 5/24/2007
Posts: 1,805
@ Hello,

To my mind, there will be capital gains alright in 3 to 5 years. However, the question is how much gains. If one is looking for capital gains, you make more when you get lower cost houses. For example, I think there will be more gains if I bought 3 two bedroom flats on Mlolongo @ Ksh 3m each as compared to that one of KShs. 12.5M. Each of the units will easily rise to 5M in 5 years giving me 6M. I do not think the houses of 12.5M will hit 18.5M due to the fact that the more the cost, the less the people who can afford it,and those who can have alot more options for their money.
I Think Therefore I Am
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KulaRaha
#3 Posted : Thursday, March 31, 2011 11:14:37 AM
Rank: Elder


Joined: 7/26/2007
Posts: 6,514
I read somewhere that every year 3000 new families can afford to buy homes.

This means there will be trickle down up to the higher levels too.

For example, I have a friend who bought a house for 23M, yes 23M in Nov 2007. He has a firm offer right now for 50M for the same.

I think more people can afford better housing every year.
Business opportunities are like buses,there's always another one coming
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hello
#4 Posted : Thursday, March 31, 2011 1:44:50 PM
Rank: Member


Joined: 6/11/2008
Posts: 257
KulaRaha wrote:
I read somewhere that every year 3000 new families can afford to buy homes.

This means there will be trickle down up to the higher levels too.

For example, I have a friend who bought a house for 23M, yes 23M in Nov 2007. He has a firm offer right now for 50M for the same.

I think more people can afford better housing every year.



Is it a Flat or Town house ?

I guess Town house.
I want to be a millionaire.
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bwenyenye
#5 Posted : Thursday, March 31, 2011 1:53:47 PM
Rank: Elder


Joined: 5/24/2007
Posts: 1,805
I think that all properties will continue to rise in the next 3 to 5. Whether a Flat, Apartment or townhouse. There will always be a demand for all. I think that there appears to be a linear progression of the 'nairobi' middleclass. The frist option they want to buy is a flat/ apartment due to the location or class. The next theng is they tend to progress to a townhouse on their way up to the mansion.

In my earlier analysis, I was considering what would be a hot cake to sell anyday.
I Think Therefore I Am
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hello
#6 Posted : Thursday, March 31, 2011 5:31:55 PM
Rank: Member


Joined: 6/11/2008
Posts: 257
bwenyenye wrote:
I think that all properties will continue to rise in the next 3 to 5. Whether a Flat, Apartment or townhouse. There will always be a demand for all. I think that there appears to be a linear progression of the 'nairobi' middleclass. The frist option they want to buy is a flat/ apartment due to the location or class. The next theng is they tend to progress to a townhouse on their way up to the mansion.

In my earlier analysis, I was considering what would be a hot cake to sell anyday.


I think so.

Reason being

If you see history some years ago,

Cement was 400/- kshs a bag.
Steel was 28-32 kshs per kg.
Sand/Ballast was 700/- shs per ton.
Land was very cheap.

and today

Cement is 650/- a bag
Steel is 60-65 shs per kg.
Sand / Ballast is 1300 shs per ton.
Land (Don't ask, any time u can get heart attack)

So after few years this prices will be double again.
I want to be a millionaire.
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For Sport
#7 Posted : Thursday, March 31, 2011 6:46:27 PM
Rank: Veteran


Joined: 12/23/2010
Posts: 1,229
Hello, about the cement prices:

http://allafrica.com/stories/201103080710.html

not that anyone's expecting a significant drop
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Vj
#8 Posted : Thursday, March 31, 2011 8:45:17 PM
Rank: New-farer


Joined: 9/6/2010
Posts: 97
Location: nairobi, kenya
It is unlikely that prices will double again in the next 3-5 years, firstly because land prices have started stabilizing and secondly doubling the prices from current levels will lead to a large fall in demand (unless there is an economic miracle waiting to happen), as people won't be able to afford those prices.

I feel the increase in prices you will see are those that correspond to inflationary pressures, especially in the high end areas. If you are looking to decent make capital gains i would advise you to go for property in upcoming areas which are likely to be the new epi-centres for growth.
Before you can be be old and wise, you must first be young and stupid.
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Pablo
#9 Posted : Saturday, April 02, 2011 1:07:50 PM
Rank: Member


Joined: 3/17/2008
Posts: 567
Location: Nairobi
Prices of property doesnt go up due to the increase in Cement chuma etc, it goes mainly due to the land it sits on.

It is possible that a modest 3br bungalow on 1 Ac in lavington was cheaper than a 5Br mansion on a quarter acre in the same area 10yrs ago. Which one do you think is worth more today??

I also wonder why someone would buy an apt with Gym, pool, Sauna etc etc. The service charge of such a place could be 30 - 40k per month and we always have those obnoxious kenyans who will refuse to pay because "he doesnt use the pool".
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