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Low End Housing: High Risk, High Return
Rank: Member Joined: 9/20/2007 Posts: 252
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Chaka wrote:mungaits wrote:Here is the current bedsitter development craze;
There is high demand for the bedsitters due to interest from students, newly employed people and slay queens! ππ
- lease land (50x100) at 30k - 60k per month for a min of 17 years
- put up approx 40 units of bedsitters at approx 200k - 300k each (total cost 8m - 12m)
- rent out the units at 8k - 12k (total monthly income - 320k - 480k)
- recoup your costs in 3 - 4 yrs and enjoy your rent for 14 yrs
* very important LOCATION LOCATION LOCATION
( current hot locations; Waiyaki Way, kawangware, Dagoreti, kiambu etc)
* due to competition include WiFi, DSTV, small gym and secure parking (mostly for sponsors ππ)
Pros
- you access a plot in a location that could be out of reach or unavailable for out right purchase
- you donβt tie your capital in purchase of land
- you get first priority to purchase the land if the owners want to sell the plot
- very simple and quick to put up (mostly without approvals)
Cons
- after the lease period expires you have to walk away and leave the development as it is
I know of guys/groups with numerous such set ups and raking in crazy amounts as rent every month
Happy investing
1.I wonder how the lease agreement looks like? They very explicit and water tight with clearly defined terms 2.Does that construction cost include wiring(who applies for the power) and plumbing? All costs covered but very basic finishing. A bedsitter has very minimal fittings 3.What if there are water issues at the location(borehole)? Thatβs why I insisted that location is KEY!
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Rank: Elder Joined: 6/23/2009 Posts: 14,337 Location: nairobi
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Let me leave this here for the up and coming.. Take the leap of faith and God will provide. Reverse economics states that supply creates demand! Build it, they will come to rent..  COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 6/23/2009 Posts: 14,337 Location: nairobi
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1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly  COOP, IMH, KEGN, KQ, MTNU
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Rank: Member Joined: 1/18/2019 Posts: 185 Location: kenya
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There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI. http://west-suites.com/project.html
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for? [quote=nairobby]There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI. http://west-suites.com/project.html[/quote]
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Rank: Elder Joined: 6/23/2009 Posts: 14,337 Location: nairobi
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Chaka wrote:Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for? nairobby wrote:There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI. http://west-suites.com/project.html
@nairrobby those are very well done units COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 6/23/2009 Posts: 14,337 Location: nairobi
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Chaka wrote:Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for? nairobby wrote:There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI. http://west-suites.com/project.html
@nairrobby those are very well done units COOP, IMH, KEGN, KQ, MTNU
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Rank: Veteran Joined: 11/13/2015 Posts: 1,658
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obiero wrote:Chaka wrote:Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for? nairobby wrote:There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI. http://west-suites.com/project.html
@nairrobby those are very well done units Told wazuans about these units when only the top floor had been sold and they didn't seem keen.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Were those top units any cheaper and were they being sold off plan? [ quote=wukan] obiero wrote:Chaka wrote:Do the studios have a balcony?And how is the land rent/rates for the land occupied by the building paid for? nairobby wrote:There's some fantastic studio apartments I came across in Nairobi West. Really nice, 250sq ft and the finishing is top notch. Unfortunately sold out by the time I wanted to get in, sale price was Ksh 3m and they're currently being rented for Ksh 25k p.m. Decent ROI. http://west-suites.com/project.html
@nairrobby those are very well done units Told wazuans about these units when only the top floor had been sold and they didn't seem keen. [/quote]
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Selling a 25sqm single room at 3m is the biggest con ever since it translates to 120,000 Bob per sqm while cost of construction is 25k per m2. Ksh 3m can build you a 3bdrm house elsewhere. Also I thought all county approvals are for minimum 1bdr units, (like visionary kabogo recommended) lest we end up with high rise slums.
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