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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: 13,499 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.. 
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,499 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 
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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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: 13,499 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
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,499 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
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 11/13/2015 Posts: 1,588
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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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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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hardwood wrote: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.  You are crushing nairobby-wukan's dreams boss! Karibu homes Mutongoni road Athi River ni kengine. Those "homes" are 3m but if you stretch your arms you can literally touch opposite walls at once. This is why DC is the future. Wide open spaces and huge homes for a fraction of the cost per sqm and half of Nairobi is already there so amenities are fast catching up!
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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obiero wrote:1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly This is a lovely scheme that has worked wonders in Singapore. Singapore has the highest home ownership rates in the world because of a similar scheme they started decades ago. Think of it as a revolving fund/chama for housing. By yourself alone you may not build a home in your lifetime especially if you are one of the 90% of payslip nation earning 50k or less. With the fund, by your tusmall tusmall contributions over 5 years pooled with others, hundreds of thousands of affordable and subsidised houses that you can move into and pay off over your lifetime can and will be built. Without this scheme the average member of payslip nation is not disciplined enough to save and invest in property so they will take the money buy fombe and nyama joma and cry all day that gava has failed because home ownership is out of reach. So this is good for them.
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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MugundaMan wrote:obiero wrote:1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly This is a lovely scheme that has worked wonders in Singapore. Singapore has the highest home ownership rates in the world because of a similar scheme they started decades ago. Think of it as a revolving fund/chama for housing. By yourself alone you may not build a home in your lifetime especially if you are one of the 90% of payslip nation earning 50k or less. With the fund, by your tusmall tusmall contributions over 5 years pooled with others, hundreds of thousands of affordable and subsidised houses that you can move into and pay off over your lifetime can and will be built. Without this scheme the average member of payslip nation is not disciplined enough to save and invest in property so they will take the money buy fombe and nyama joma and cry all day that gava has failed because home ownership is out of reach. So this is good for them. It can actually work but all Jubilee projects are done with the sole agenda of looting. The day they moved housing docket from lands under farida to macharia (the most corrupt jubilee minister), was the clearest sign this is a scam.
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Rank: Member Joined: 1/18/2019 Posts: 185 Location: kenya
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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? [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] No balcony.I'm guessing something from the service charge will cover the rates.
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Rank: Member Joined: 1/18/2019 Posts: 185 Location: kenya
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hardwood wrote: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. The con is constant in Nairobi, the oversupply will deal with that. That works out to about 12k per sq foot which is roughly the rate for these Kileleshwa apartments anyway. There is real demand at this price point though, developers are making a serious killing.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,588
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FRM2011 wrote:MugundaMan wrote:obiero wrote:1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly
This is a lovely scheme that has worked wonders in Singapore. Singapore has the highest home ownership rates in the world because of a similar scheme they started decades ago. Think of it as a revolving fund/chama for housing. By yourself alone you may not build a home in your lifetime especially if you are one of the 90% of payslip nation earning 50k or less. With the fund, by your tusmall tusmall contributions over 5 years pooled with others, hundreds of thousands of affordable and subsidised houses that you can move into and pay off over your lifetime can and will be built. Without this scheme the average member of payslip nation is not disciplined enough to save and invest in property so they will take the money buy fombe and nyama joma and cry all day that gava has failed because home ownership is out of reach. So this is good for them. It can actually work but all Jubilee projects are done with the sole agenda of looting. The day they moved housing docket from lands under farida to macharia (the most corrupt jubilee minister), was the clearest sign this is a scam. The housing fund was established way back in 1957 but never 'operationalized'. Back then the colonial govt had started on social housing in shauri moyo, bahati, ziwani(most of eastlands). It was supposed to be within walking distance to the industrial zone and cbd. The housing was connected through scheduled public transport-Kenya bus services. Singapore got the same housing fund legislation but ran away with it. In kenya jomo kenyatta wanted people to go back to mashambani. He only did a few housing projects through grants for the middle class civil service that's how buruburu, onyonka, south b, south c, onyonka all came about. Now mido crass is all over twitter with hashtags to resist the housing levy yet their parents benefited from public funds for their estates. The colonial govt didn't much damn about african living conditions as you can see from this feature on shauri moyo https://www.youtube.com/watch?v=YNyQy77K50A There is a lady who is crying for the govt to bring down the colonial settlement and do the affordable housing projects. The place was built with open trough for toilets  Public transport and housing go together. Colonial govt established the Kenya bus services and jubilee is implementing the BRT system. Govt has been pouring billions trying to fix nairobi traffic de-congestion yet the traffic get worse. A new approach has to be made.
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Rank: Member Joined: 1/18/2019 Posts: 185 Location: kenya
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MugundaMan wrote:hardwood wrote: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. You are crushing nairobby-wukan's dreams boss! Karibu homes Mutongoni road Athi River ni kengine. Those "homes" are 3m but if you stretch your arms you can literally touch opposite walls at once. This is why DC is the future. Wide open spaces and huge homes for a fraction of the cost per sqm and half of Nairobi is already there so amenities are fast catching up! Those Kitengela homes going for 8/9m are fetching 35k rent. That's very poor. Looking at it from a rental play perspective these studios are a much better investment and have ready demand for them.
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Rank: Member Joined: 12/2/2009 Posts: 299 Location: kenya
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wukan wrote:FRM2011 wrote:MugundaMan wrote:obiero wrote:1.5% of basic pay effective May 2019.. Who understands this Big Four agenda and can explain it to all of us lucidly
This is a lovely scheme that has worked wonders in Singapore. Singapore has the highest home ownership rates in the world because of a similar scheme they started decades ago. Think of it as a revolving fund/chama for housing. By yourself alone you may not build a home in your lifetime especially if you are one of the 90% of payslip nation earning 50k or less. With the fund, by your tusmall tusmall contributions over 5 years pooled with others, hundreds of thousands of affordable and subsidised houses that you can move into and pay off over your lifetime can and will be built. Without this scheme the average member of payslip nation is not disciplined enough to save and invest in property so they will take the money buy fombe and nyama joma and cry all day that gava has failed because home ownership is out of reach. So this is good for them. It can actually work but all Jubilee projects are done with the sole agenda of looting. The day they moved housing docket from lands under farida to macharia (the most corrupt jubilee minister), was the clearest sign this is a scam. The housing fund was established way back in 1957 but never 'operationalized'. Back then the colonial govt had started on social housing in shauri moyo, bahati, ziwani(most of eastlands). It was supposed to be within walking distance to the industrial zone and cbd. The housing was connected through scheduled public transport-Kenya bus services. Singapore got the same housing fund legislation but ran away with it. In kenya jomo kenyatta wanted people to go back to mashambani. He only did a few housing projects through grants for the middle class civil service that's how buruburu, onyonka, south b, south c, onyonka all came about. Now mido crass is all over twitter with hashtags to resist the housing levy yet their parents benefited from public funds for their estates. The colonial govt didn't much damn about african living conditions as you can see from this feature on shauri moyo https://www.youtube.com/watch?v=YNyQy77K50A There is a lady who is crying for the govt to bring down the colonial settlement and do the affordable housing projects. The place was built with open trough for toilets Public transport and housing go together. Colonial govt established the Kenya bus services and jubilee is implementing the BRT system. Govt has been pouring billions trying to fix nairobi traffic de-congestion yet the traffic get worse. A new approach has to be made. What you need to realise is that this project threatens the landlords and slumlords of this great country and as such itll face alot of resistance from the would be victims.Its only Uhuru and a few like minded individuals who can push for its realization.Its a good idea but with the selfish mindset of capitalistics it does not wash.
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Rank: Elder Joined: 6/23/2009 Posts: 13,499 Location: nairobi
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There's a little problem with the affordable housing push.. Will someone who bought a quarter piece of acre in Syokimau at KES 3m offer any sort of decent house at less than KES 7m https://www.businessdail...56564-ue2opuz/index.html
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 3/25/2010 Posts: 939 Location: Nai
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[quote=obiero]There's a little problem with the affordable housing push.. Will someone who bought a quarter piece of acre in Syokimau at KES 3m offer any sort of decent house at less than KES 7m https://www.businessdail...6564-ue2opuz/index.html[/quote] Unless mavoko changes their regulations in all zones within syokimau and allows you to do more than 4 units its just impossible to do anything less than 7M. KCAA will also be on you if you go beyond 3rd floor in some areas of syokimau.
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