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Building an apartment complex. Too good to be true?
Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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Just got a quote from a contractor as follows: Plot size necessary for apartments : 1/8th Total plinth approx 1300 sqm 16 units of 2br @ 70 sqm each construction period: 50 weeks Total cost 15,600,000 meaning 12k per sqm!  Is this possible or am I dealing with a con company The final design (wish I could upload) looks very nice! In fact if this is true I want to get started immediately. In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 3/15/2009 Posts: 362
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amorphous wrote:Just got a quote from a contractor as follows: Plot size necessary for apartments : 1/8th Total plinth approx 1300 sqm 16 units of 2br @ 70 sqm each construction period: 50 weeks Total cost 15,600,000 meaning 12k per sqm! Is this possible or am I dealing with a con company The final design (wish I could upload) looks very nice! In fact if this is true I want to get started immediately. tell them to break down that cost and agree on specifications for the works. how are payment terms, are you paying upfront?
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Rank: Member Joined: 11/15/2010 Posts: 455 Location: Nairobi
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shocks wrote:amorphous wrote:Just got a quote from a contractor as follows: Plot size necessary for apartments : 1/8th Total plinth approx 1300 sqm 16 units of 2br @ 70 sqm each construction period: 50 weeks Total cost 15,600,000 meaning 12k per sqm! Is this possible or am I dealing with a con company The final design (wish I could upload) looks very nice! In fact if this is true I want to get started immediately. tell them to break down that cost and agree on specifications for the works. how are payment terms, are you paying upfront? . I won't mind to get the best deal in the market. But do due deligence before signing-up. Ask for the projects they have completed in the recent past and talk to the owner or ask around. Then, consider working with them in phases such as, Up to foundation, then up to ground floor etc,etc. ....He who began a good work in you will carry it on to completion..
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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shocks wrote:amorphous wrote:Just got a quote from a contractor as follows: Plot size necessary for apartments : 1/8th Total plinth approx 1300 sqm 16 units of 2br @ 70 sqm each construction period: 50 weeks Total cost 15,600,000 meaning 12k per sqm! Is this possible or am I dealing with a con company The final design (wish I could upload) looks very nice! In fact if this is true I want to get started immediately. tell them to break down that cost and agree on specifications for the works. how are payment terms, are you paying upfront? I always pay by phase as tinker has advised above. I think these guys are a scam. Ati 5 floors, three shops ground, 4 apartments per upper floor, including finishes for every single apartment, plumbing and electrical  Haiwezekani kabisa. I think these guys low ball the bid then when construction starts they say "pesa imeisha" and ask for more and more and more each stage. In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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tinker wrote:shocks wrote:amorphous wrote:Just got a quote from a contractor as follows: Plot size necessary for apartments : 1/8th Total plinth approx 1300 sqm 16 units of 2br @ 70 sqm each construction period: 50 weeks Total cost 15,600,000 meaning 12k per sqm! Is this possible or am I dealing with a con company The final design (wish I could upload) looks very nice! In fact if this is true I want to get started immediately. tell them to break down that cost and agree on specifications for the works. how are payment terms, are you paying upfront? . I won't mind to get the best deal in the market. But do due deligence before signing-up. Ask for the projects they have completed in the recent past and talk to the owner or ask around. Then, consider working with them in phases such as, Up to foundation, then up to ground floor etc,etc. Great tips, thanks. My game plan is to get all approvals including change of user then build in stages. 1. Ground floor shops (stalls, small restaurant and small duka) and caretakers apartment 2. Connect water and stima and move into caretakers apartment. Construction accesss will be from back of the building. 3. Rent out home I am currently living in to turbo boost income so that construction keeps going without interruption each month. 4. Rent out stalls and shops for same reason as 3 above 5. As each floor completes, flood with tenants and repeat until complete 6. Roof will be for tanks and clothes lines and small playground area for kids. I plan to take no loans whatsoever, just finance from savings. Any suggestions, tweaks or tips to this plan? Thanks in advance.. In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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amorphous wrote:tinker wrote:shocks wrote:amorphous wrote:Just got a quote from a contractor as follows: Plot size necessary for apartments : 1/8th Total plinth approx 1300 sqm 16 units of 2br @ 70 sqm each construction period: 50 weeks Total cost 15,600,000 meaning 12k per sqm! Is this possible or am I dealing with a con company The final design (wish I could upload) looks very nice! In fact if this is true I want to get started immediately. tell them to break down that cost and agree on specifications for the works. how are payment terms, are you paying upfront? . I won't mind to get the best deal in the market. But do due deligence before signing-up. Ask for the projects they have completed in the recent past and talk to the owner or ask around. Then, consider working with them in phases such as, Up to foundation, then up to ground floor etc,etc. Great tips, thanks. My game plan is to get all approvals including change of user then build in stages. 1. Ground floor shops (stalls, small restaurant and small duka) and caretakers apartment 2. Connect water and stima and move into caretakers apartment. Construction accesss will be from back of the building. 3. Rent out home I am currently living in to turbo boost income so that construction keeps going without interruption each month. 4. Rent out stalls and shops for same reason as 3 above 5. As each floor completes, flood with tenants and repeat until complete 6. Roof will be for tanks and clothes lines and small playground area for kids. I plan to take no loans whatsoever, just finance from savings. Any suggestions, tweaks or tips to this plan? Thanks in advance.. Can you get an occupancy certificate while construction is ongoing? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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VituVingiSana wrote:Can you get an occupancy certificate while construction is ongoing?
Vituvingisana, This is Kenya. Whether you follow the rules or not. NCA and the County will always come for their pound of flesh. I am sure you have seen so many half finished apartment buildings fully occupied all over Kenya. At least I am going for all approvals. Others do not even bother. In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 11/15/2010 Posts: 455 Location: Nairobi
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VituVingiSana wrote:amorphous wrote:tinker wrote:shocks wrote:amorphous wrote:Just got a quote from a contractor as follows: Plot size necessary for apartments : 1/8th Total plinth approx 1300 sqm 16 units of 2br @ 70 sqm each construction period: 50 weeks Total cost 15,600,000 meaning 12k per sqm! Is this possible or am I dealing with a con company The final design (wish I could upload) looks very nice! In fact if this is true I want to get started immediately. tell them to break down that cost and agree on specifications for the works. how are payment terms, are you paying upfront? . I won't mind to get the best deal in the market. But do due deligence before signing-up. Ask for the projects they have completed in the recent past and talk to the owner or ask around. Then, consider working with them in phases such as, Up to foundation, then up to ground floor etc,etc. Great tips, thanks. My game plan is to get all approvals including change of user then build in stages. 1. Ground floor shops (stalls, small restaurant and small duka) and caretakers apartment 2. Connect water and stima and move into caretakers apartment. Construction accesss will be from back of the building. 3. Rent out home I am currently living in to turbo boost income so that construction keeps going without interruption each month. 4. Rent out stalls and shops for same reason as 3 above 5. As each floor completes, flood with tenants and repeat until complete 6. Roof will be for tanks and clothes lines and small playground area for kids. I plan to take no loans whatsoever, just finance from savings. Any suggestions, tweaks or tips to this plan? Thanks in advance.. Can you get an occupancy certificate while construction is ongoing? Uko sawa buda if you can finance apartment construction "non-stop" from your savings. Regarding occupying ground floor and other subsequent floor without roof means you have to deal with shutter leakages during rainy seasons and by extension paint wearing. ....He who began a good work in you will carry it on to completion..
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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tinker wrote:
Uko sawa buda if you can finance apartment construction "non-stop" from your savings.
Regarding occupying ground floor and other subsequent floor without roof means you have to deal with shutter leakages during rainy seasons and by extension paint wearing.
Noted with thanks In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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amorphous wrote:shocks wrote:amorphous wrote:Just got a quote from a contractor as follows: Plot size necessary for apartments : 1/8th Total plinth approx 1300 sqm 16 units of 2br @ 70 sqm each construction period: 50 weeks Total cost 15,600,000 meaning 12k per sqm! Is this possible or am I dealing with a con company The final design (wish I could upload) looks very nice! In fact if this is true I want to get started immediately. tell them to break down that cost and agree on specifications for the works. how are payment terms, are you paying upfront? I always pay by phase as tinker has advised above. I think these guys are a scam. Ati 5 floors, three shops ground, 4 apartments per upper floor, including finishes for every single apartment, plumbing and electrical Haiwezekani kabisa. I think these guys low ball the bid then when construction starts they say "pesa imeisha" and ask for more and more and more each stage. Was also thinking the same. Idea being once you commit to them, they will keep pulling surprises at every stage For investors as a whole, returns decrease as motion increases ~ WB
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