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Real Estate Investment strategy- Advice Needed
Rank: Member Joined: 2/18/2011 Posts: 448
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actually if you check the sqm per house and multiply with what A4architect says,you shall notice the huge price discrepancy.eg he says a high quality finish apartment eg in kileleshwa costs around 35k per sqm.now the lynx 1 bedroom is 27 sqm and costs 3.2mil cahs,3.6 mortgage.do the math......
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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kaifastus wrote:What's this crave about suraya? Some1 please make me understand. With 1.5 to 2.5m you can get a clean 50x100 or 40x80 plot. Use 3 to 4m to construct the first floor of 6 one bedroom rental houses. Rent them out for 5k to 7.5k a month. I am talking from experience. Interesting. What's the size of each unit, the rooms?
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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kaifastus wrote: With 1.5 to 2.5m you can get a clean 50x100 or 40x80 plot. Use 3 to 4m to construct the first floor of 6 one bedroom rental houses. Rent them out for 5k to 7.5k a month. I am talking from experience. Let me get this straight! if i invest 4.5m and rented out each unit at 5k i would be earning 360k p.a! (8% yield)If i invest 6.5m and rented out each unit at 7.5k i would be earning 540k p.a! (8.3% yield)These yields still do not match up to the interest rate on bonds and dividend yields on some stocks.. Especially if you factor in the stress of housing development and the costs of maintenance and agents commission Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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that is a sober reflection guru. i think houses are really pain. some tenants are just too much stress. especially the low cost housing. 2000-3000. a guy can complain hata stima ya 150. stress i tell u. LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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guru267 wrote:kaifastus wrote: With 1.5 to 2.5m you can get a clean 50x100 or 40x80 plot. Use 3 to 4m to construct the first floor of 6 one bedroom rental houses. Rent them out for 5k to 7.5k a month. I am talking from experience. Let me get this straight! if i invest 4.5m and rented out each unit at 5k i would be earning 360k p.a! (8% yield)If i invest 6.5m and rented out each unit at 7.5k i would be earning 540k p.a! (8.3% yield)These yields still do not match up to the interest rate on bonds and dividend yields on some stocks.. Especially if you factor in the stress of housing development and the costs of maintenance and agents commission Guru its impossible to objectively compare stocks, real estate and bonds. One thing is clear though you need a mix of the three in your portfolio. Your analysis above of 8%to 10% is true for rental yields. What amaze me with real estate is that cost of material labor and land rises up so rapidly each year such that if you flip it in 10yrs you will realise tidy sum. Stocks also give capital gains,but the risk levels are very high. The investor need to be very good to take advantage of the cycles and also manage stress! Of which you are guru.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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kaifastus wrote: Stocks also give capital gains,but the risk levels are very high. Risk is only high when you want to jump in & out of stocks... 1. If you buy and hold a blue chip stock yielding 10% in dividends for 10years just like you would a rental i believe the risk is minimal... 2. Dividends increases from blue chip stocks year on year will far outpace increase in the rent from your units. 3. The capital gains in stocks over 10 years far outpace those of real estate unless there is a global financial crisis!  4. Far, far, far less hustle in holding a stock as opposed to a rental unit 5. Tax benefits.. (5% dividend tax as opposed to 30% rental tax) 6. Far less paper work and risk of fraud in stocks as opposed to real estate! 7. Easier liquidity if a blue chip stock is selected. Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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Consider real estate as a bissiness guru. Blue chip companies are subject to same tax obligations as any business be it real estate. Pple who invest in shares do so with funds realised from business and/or emploment.others start businesses from scratch and later list such business. Again guru Dividends will therefore be a function of profits realised. The multiplier effect of having a business worth 10 m is greater than buying 10m worth of blue chip shares. Equity,suraya projects and other companies were started as businesses. I can't imagine what couldave hapened if their owners bought eabl shares instead.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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they would have owned (i think), by now. LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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i think guru was alluding to returns of stocks investing (dividents vs rental income). as for capital gains, suraya loan that money albeit at a low interest rates (5-7% maybe) so the returns will be modest. LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Hello Joined: 9/1/2012 Posts: 4
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@kaifastus... good stuff...
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Rank: Hello Joined: 9/1/2012 Posts: 4
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the other thing to consider if you are going to invest in real estate is the possibility of incorporating. if you set up a limited company a lot of your expenses will be deductible . rent, even parking fees etc.
i wouldn't, obviously, want to argue with people with a lot of experience; but properly managed, there are huge advantages to real estate as well
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Rank: Hello Joined: 9/3/2012 Posts: 4
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HI.
Try putting your money in raw real estate.
i have a 3.6 acre land at katani- near syokimau that i bought 4 years ago for 4.8M, today the property has quadrupled in value to 5.4M an acre translating to just under 20M in 4 YEARS, add all the improvements i have made- a borehole, water tower, perimeter wall among others.
Now i can sell and move on to bigger things.
Any one with some good advice on how to make the most of this since the land is in one title? Do i develop- who do i engage towards this?
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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munyi wrote:HI.
Try putting your money in raw real estate.
i have a 3.6 acre land at katani- near syokimau that i bought 4 years ago for 4.8M, today the property has quadrupled in value to 5.4M an acre translating to just under 20M in 4 YEARS, add all the improvements i have made- a borehole, water tower, perimeter wall among others.
Now i can sell and move on to bigger things.
Any one with some good advice on how to make the most of this since the land is in one title? Do i develop- who do i engage towards this?
If i were you i would hold it alot more the place is currently undergoing transformation...i would for syokimau to actualize its true potential.. I got a pile of lands and plots...i am now changing my strategy to cash flow.. More monies, more problems...
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Rank: Member Joined: 3/26/2012 Posts: 830
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@Seles...what did you decide eventually?I would advise you to get high dividend yielding stocks like KCB,BAT,williamson tea etc...just make sure you research the cause for their low prices.With a portfolio of these stocks like 4 or 5 at most,your bank a/c will be fatter than the landlord's.No maintenance cost involved and if prices dip,there is a good margin of safety.If the capital gains are reasonable e.g 40%,cash in ocassionally.Repeat until wealthy. A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Veteran Joined: 2/21/2012 Posts: 1,739
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@Munyi. Nikatie 5 x 5 yards.. Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God..
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Rank: Member Joined: 1/24/2013 Posts: 325
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Seles83 wrote:http://www.suraya.co.ke/index.php/property-in-kenya/ongoing-projects/the-lynx-mbagathi-road
Another Project from Suraya..Mbagathi Road...
CASH PRICES
APARTMENTS AUGUST 2012
TYPE SQM ACTUAL SALE PRICE TOTAL UNITS
1 BEDROOM Lynx 3 27 KSHS 3,200,000/=
60
2 BEDROOM
Lynx 4 38 KSHS 4,150,000/= 42
2 BEDROOM ENSUITE Lynx 5 42 KSHS 4,550,000/= 54
MORTGAGE BUYERS
10% DEPOSIT TO SURAYA SALES LTD.
90% MORTGAGE (APPROVED)
TYPE SQM ACTUAL SALE PRICE TOTAL UNITS
1 BEDROOM
Lynx 3 27 KSHS 3,600,000/= 60
2 BEDROOM
Lynx 4 38 KSHS 4,650,000/= 42
2 BEDROOM ENSUITE Lynx 5 42 KSHS 5,100,000/= 54
@seles @mibbz Say someone gets the 2 bed cash option for 4.15m,so no interest rates with plans to dispose of it in 2 yrs after completion, good plan?
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Rank: New-farer Joined: 6/27/2011 Posts: 17 Location: mombasa
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guru267 wrote:kaifastus wrote: With 1.5 to 2.5m you can get a clean 50x100 or 40x80 plot. Use 3 to 4m to construct the first floor of 6 one bedroom rental houses. Rent them out for 5k to 7.5k a month. I am talking from experience. Let me get this straight! if i invest 4.5m and rented out each unit at 5k i would be earning 360k p.a! (8% yield)If i invest 6.5m and rented out each unit at 7.5k i would be earning 540k p.a! (8.3% yield)These yields still do not match up to the interest rate on bonds and dividend yields on some stocks.. Especially if you factor in the stress of housing development and the costs of maintenance and agents commission Seems u r conversant with how bond market works. I wuld appreciate your help. I just see CBK advertisements on newspaper but I hav really thot about them. Am also on nduatizy at yahoo dot com.
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Rank: Member Joined: 10/26/2011 Posts: 181 Location: Nairobi
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kaifastus wrote:What's this crave about suraya? Some1 please make me understand. With 1.5 to 2.5m you can get a clean 50x100 or 40x80 plot. Use 3 to 4m to construct the first floor of 6 one bedroom rental houses. Rent them out for 5k to 7.5k a month. I am talking from experience. Me, I pretty much have settled for Kaifastus's model & I can raise 10m. Problem is like Seles, I am not in the country, so shopping around for that 50x100 or 40x80 plot with immediate rental potential and with clean title is a problem. Any leads Kaifastus would be appreciated. Disclosure - I was in the country in last Dec and most of the plots I was shown are speculative; those I have enough already. There were some plots I was shown & would have liked, in Umoja 3, but there is an unsettling history about them, wonder if any Wazuan has experience with Umoja 3. First time in history we can save the human race by laying in front of the TV and doing nothing. Let's not screw it up
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Rank: Member Joined: 2/18/2011 Posts: 448
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ChumsQuest wrote:Seles83 wrote:http://www.suraya.co.ke/index.php/property-in-kenya/ongoing-projects/the-lynx-mbagathi-road
Another Project from Suraya..Mbagathi Road...
CASH PRICES
APARTMENTS AUGUST 2012
TYPE SQM ACTUAL SALE PRICE TOTAL UNITS
1 BEDROOM Lynx 3 27 KSHS 3,200,000/=
60
2 BEDROOM
Lynx 4 38 KSHS 4,150,000/= 42
2 BEDROOM ENSUITE Lynx 5 42 KSHS 4,550,000/= 54
MORTGAGE BUYERS
10% DEPOSIT TO SURAYA SALES LTD.
90% MORTGAGE (APPROVED)
TYPE SQM ACTUAL SALE PRICE TOTAL UNITS
1 BEDROOM
Lynx 3 27 KSHS 3,600,000/= 60
2 BEDROOM
Lynx 4 38 KSHS 4,650,000/= 42
2 BEDROOM ENSUITE Lynx 5 42 KSHS 5,100,000/= 54
@seles @mibbz Say someone gets the 2 bed cash option for 4.15m,so no interest rates with plans to dispose of it in 2 yrs after completion, good plan? Suraya is great as its location are prime for young families starting out. Only issue i have is the 2 bedroom is 38sqm; now multiply 38*35000 comes to 1330000. Meaning for location an 10 years service charge free am paying an extra near 2.8 Mil....but the value should go up to approx 6 Mil which is the market rate and rent in highrise region is 20k thus 480k a year...still thik its ok value for money
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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I decided on Hybrid (Real Estate and NSE)...i am back to stock market but with long term mindset (5yrs>>).. I want to benefit from both fronts.. More monies, more problems...
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