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Joint Venture in houses construction
Rank: Elder Joined: 2/10/2007 Posts: 1,587
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@the deal,
Thanks, I trust we will get the financier. We have finished the concept.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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PKoli wrote:@the deal,
Thanks, I trust we will get the financier. We have finished the concept.
I'm sure you will...I'm allergic to gava dependent projects especially now we are talking of many gava's...look at South Sudan...that M7 is also showing signs of "last kicks of a dictator"
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Rank: Member Joined: 4/4/2007 Posts: 91
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the deal wrote:Pirate wrote:I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .
In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.
My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though
Hi Pirate...I'm willing to work with you....
Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.
Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital
I agree that's a strong upside however it would depends on the terms of the joint venture.
The 2 plots are worth 3.5 mil
My calculations are that it would cost between approx 3.7m to put up 2 bungalows including drawings, approvals and other associated construction costs .
The bungalows are going for 5.5-6m at the moment . 300m from town , 1 km off the road .
Potential return is 5m. I would consider a joint venture if it is maisonettes to be constructed
Knowledge is power , but action gets things done ...
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Rank: Member Joined: 4/4/2007 Posts: 91
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justKiwi wrote:Pirate wrote:I'm in the same scenario with 2 adjacent plots at Kitengela Milimani that I am considering developing 2 bungalows for sale .
In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.
My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though
What would you make/loose (if you go joint way)above selling the plots.Assuming;
1.The plots would cost 2m. each x 2 = 4m
2. How much approximately would be your share in a joint case.
The Joint venture I would engage in is one where several people join hands to buy an acre of land and set up 8 stand alone maisonettes . This seems to be working well especially in Kitengela
Knowledge is power , but action gets things done ...
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Rank: New-farer Joined: 8/25/2012 Posts: 32
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Pirate wrote:justKiwi wrote:Pirate wrote:I'm in the same scenario with 2 adjacent plots at Kitengela Milimani that I am considering developing 2 bungalows for sale .
In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.
My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though
What would you make/loose (if you go joint way)above selling the plots.Assuming;
1.The plots would cost 2m. each x 2 = 4m
2. How much approximately would be your share in a joint case.
The Joint venture I would engage in is one where several people join hands to buy an acre of land and set up 8 stand alone maisonettes . This seems to be working well especially in Kitengela
What about 1/2 acre enough for four maisonettes?
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Pirate wrote:the deal wrote:Pirate wrote:I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .
In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.
My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though
Hi Pirate...I'm willing to work with you....
Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.
Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital
I agree that's a strong upside however it would depends on the terms of the joint venture.
The 2 plots are worth 3.5 mil
My calculations are that it would cost between approx 3.7m to put up 2 bungalows including drawings, approvals and other associated construction costs .
The bungalows are going for 5.5-6m at the moment . 300m from town , 1 km off the road .
Potential return is 5m. I would consider a joint venture if it is maisonettes to be constructed
One needs to do a comprehensive feasibility study to determine the best development for the two plots...I dont want to go into details here....but I can already spot errors in your calculations...
In case we do a JV your equity investment in the JV will only be the two plots currently valued at Ksh3.5mn (needs to be verified) as you put it...me & my partners will bring in the expertise & the capital...
But before that I would need to do a
1. Site visit
2. Feasibility Study i.e Residual Land Valuation
3. Discuss concepts or strategies with you
4. Discuss the returns or benefits of a JV vs doing it alone...the discussion will be backed with financial figures.
Then after that I will leave you to make a decision as I decide too.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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@deal, I am thinking joint venture too for a relative. Do you have issues with ancestral land with other developments on the same parcel?
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Lolest! wrote:@deal, I am thinking joint venture too for a relative. Do you have issues with ancestral land with other developments on the same parcel?
Ancestral land is always tricky but
A. where is the land located?
B. what kind of developments are on the erven?
On the legal aspect...
1. what kind of title deed is this? is it a Master title?
2. Is your relatives name on the master title? if so is the parcel well subdivided? i.e relative A owns from A to B etc
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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the deal wrote:Pirate wrote:the deal wrote:Pirate wrote:I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .
In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.
My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though
Hi Pirate...I'm willing to work with you....
Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.
Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital
I agree that's a strong upside however it would depends on the terms of the joint venture.
The 2 plots are worth 3.5 mil
My calculations are that it would cost between approx 3.7m to put up 2 bungalows including drawings, approvals and other associated construction costs .
The bungalows are going for 5.5-6m at the moment . 300m from town , 1 km off the road .
Potential return is 5m. I would consider a joint venture if it is maisonettes to be constructed
One needs to do a comprehensive feasibility study to determine the best development for the two plots...I dont want to go into details here....but I can already spot errors in your calculations...
In case we do a JV your equity investment in the JV will only be the two plots currently valued at Ksh3.5mn (needs to be verified) as you put it...me & my partners will bring in the expertise & the capital...
But before that I would need to do a
1. Site visit
2. Feasibility Study i.e Residual Land Valuation
3. Discuss concepts or strategies with you
4. Discuss the returns or benefits of a JV vs doing it alone...the discussion will be backed with financial figures.
Then after that I will leave you to make a decision as I decide too.
Serious business! 
Haya, even I have 1/2 an acre a few metres from where KU is said to be putting up a campus... and a few metres from the beach. Current value 3 to 5M depending on whom you talk to.
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Rank: Member Joined: 4/4/2007 Posts: 91
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the deal wrote:Pirate wrote:the deal wrote:Pirate wrote:I'm in the same scenario with 2 adjacent plots at Kitengela Mlimani that I am considering developing 2 bungalows for sale .
In my assessment , joint venture is less profitable however also less involving and shared risk. I however opt to go solo.
My concern is with the gated communities popping up, I tend to think buyers may opt for the former than stand alone units . I stand to be corrected though
Hi Pirate...I'm willing to work with you....
Reach me here davismika@contrarianinvestingkenya info so that we can structure something. Regards.
Joint ventures are great than going it all alone...apart from the risks associated of doing it all alone...the other partners can bring in the expertise & capital
I agree that's a strong upside however it would depends on the terms of the joint venture.
The 2 plots are worth 3.5 mil
My calculations are that it would cost between approx 3.7m to put up 2 bungalows including drawings, approvals and other associated construction costs .
The bungalows are going for 5.5-6m at the moment . 300m from town , 1 km off the road .
Potential return is 5m. I would consider a joint venture if it is maisonettes to be constructed
One needs to do a comprehensive feasibility study to determine the best development for the two plots...I dont want to go into details here....but I can already spot errors in your calculations...
In case we do a JV your equity investment in the JV will only be the two plots currently valued at Ksh3.5mn (needs to be verified) as you put it...me & my partners will bring in the expertise & the capital...
But before that I would need to do a
1. Site visit
2. Feasibility Study i.e Residual Land Valuation
3. Discuss concepts or strategies with you
4. Discuss the returns or benefits of a JV vs doing it alone...the discussion will be backed with financial figures.
Then after that I will leave you to make a decision as I decide too.
Thanks for you comments . As you have mentioned, the concept would determine the financial figures and split thereof. In the current situation, I would be looking to bring the land + partial financing (say 50%) as my equity to the venture
Feasibility of the project would be my main concern given the preference of gated community >8 units over stand alone housing Knowledge is power , but action gets things done ...
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