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Low End Housing: High Risk, High Return
Rank: Elder Joined: 6/23/2009 Posts: 14,297 Location: nairobi
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After much research and analysis, I have noted that a bedsitter four floored flat rather than three bedroom apartments on similar floor number is more cost effective. The basis of logic lies in the fact that more units in the same floor space provides more income.. Indeed rent collection may be more challenging on the bedsitters, but as the saying goes; high risk, high return COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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Kindly put your research findings and analysis. I hope you don't put spss, I can't understand it. What you have put is the research question and the conclusion only.
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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I blame the media for hyping real estate..now a lot of investors are coming this way and we are seeing more and more to let signs as high rise apartments come up. two of my tenants shifted last month..its taking longer to fill get newer more stable ones.
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Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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kaifastus wrote:I blame the media for hyping real estate..now a lot of investors are coming this way and we are seeing more and more to let signs as high rise apartments come up. two of my tenants shifted last month..its taking longer to fill get newer more stable ones. I wouldn't blame the media much, but the average Kenya investor. Its true that getting tenants are becoming harder and harder to get, but this is mostly in the upper-middle to high end sector. Not just tenants, but also buyers. (Am basing my case from the more-than-frequent marketing am seeing nowadays from developers in the local dailies, malls etc) However, just as @Obiero has stated, the lower-middle levels and below still has alot of demand, but, getting the many tenants to pay promptly is the problem. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Member Joined: 5/28/2014 Posts: 149 Location: Nairobi
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obiero wrote:After much research and analysis, I have noted that a bedsitter four floored flat rather than three bedroom apartments on similar floor number is more cost effective. The basis of logic lies in the fact that more units in the same floor space provides more income.. Indeed rent collection may be more challenging on the bedsitters, but as the saying goes; high risk, high return Yes indeed, smaller units in low income areas fetch more in returns. However laws are now stricter, if you are going by the books. In some areas like Kiambu they are keen on controlling density so that the facilities are not overstretched. Unless you are within a certain radius of a college, they are not likely to approve a 4-floor block of pure bedsitters. You will need a mix of unit sizes. The logic is that if you are close to a college your building can be used by the students and is therefore viewed as a hostel. When you live for others' opinions, you are dead.
- Carlos Slim Helu
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Rank: Elder Joined: 6/23/2009 Posts: 14,297 Location: nairobi
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DBLyon wrote:obiero wrote:After much research and analysis, I have noted that a bedsitter four floored flat rather than three bedroom apartments on similar floor number is more cost effective. The basis of logic lies in the fact that more units in the same floor space provides more income.. Indeed rent collection may be more challenging on the bedsitters, but as the saying goes; high risk, high return Yes indeed, smaller units in low income areas fetch more in returns. However laws are now stricter, if you are going by the books. In some areas like Kiambu they are keen on controlling density so that the facilities are not overstretched. Unless you are within a certain radius of a college, they are not likely to approve a 4-floor block of pure bedsitters. You will need a mix of unit sizes. The logic is that if you are close to a college your building can be used by the students and is therefore viewed as a hostel. @DBlyon im thinking a newly employed worker bachelor or spinster would find a bedsitter as a good starting point.. myself, I used to leave in a SQ in south c as I started off life.. it was adequate for me. atleast I got to enjoy the safety of a middle class hood at rock bottom rent of KES 8,000 only COOP, IMH, KEGN, KQ, MTNU
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Rank: Member Joined: 5/28/2014 Posts: 149 Location: Nairobi
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obiero wrote:DBLyon wrote:obiero wrote:After much research and analysis, I have noted that a bedsitter four floored flat rather than three bedroom apartments on similar floor number is more cost effective. The basis of logic lies in the fact that more units in the same floor space provides more income.. Indeed rent collection may be more challenging on the bedsitters, but as the saying goes; high risk, high return Yes indeed, smaller units in low income areas fetch more in returns. However laws are now stricter, if you are going by the books. In some areas like Kiambu they are keen on controlling density so that the facilities are not overstretched. Unless you are within a certain radius of a college, they are not likely to approve a 4-floor block of pure bedsitters. You will need a mix of unit sizes. The logic is that if you are close to a college your building can be used by the students and is therefore viewed as a hostel. @DBlyon im thinking a newly employed worker bachelor or spinster would find a bedsitter as a good starting point.. myself, I used to leave in a SQ in south c as I started off life.. it was adequate for me. atleast I got to enjoy the safety of a middle class hood at rock bottom rent of KES 8,000 only That is exactly it. The bedsitters in generally nice areas go for unbelievable prices. In Langata at the moment a bedsitter with a bathroom and a kitchenette goes for between 13 - 15k. Imagine that. Some SQs in Kileleshwa go for as much as 25k. Amazing what young people are paying for an address. Highrise bedsitters are the new thing - I know at least 4 new developments that have blocks of bedsitters/ studios. Because of the shortage of affordable, decent housing, average bedsitters along Waiyaki Way are now renting for 8k a month. You have your bank tellers, etc living in them. Your calculation on the return on investment is right...the returns are very good. When you live for others' opinions, you are dead.
- Carlos Slim Helu
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Rank: Veteran Joined: 2/21/2012 Posts: 1,739
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obiero wrote:After much research and analysis, I have noted that a bedsitter four floored flat rather than three bedroom apartments on similar floor number is more cost effective. The basis of logic lies in the fact that more units in the same floor space provides more income.. Indeed rent collection may be more challenging on the bedsitters, but as the saying goes; high risk, high return True. Of course the area/location is a factor also but ovearall, bedsitters - one bedrooms - 2 bedrooms in that order are better in returns. Wanted to put up some bedsitters somewhere in east lands but the local Kanjora is against it in the area claiming young people expected to rent such are a problem for the locals. Have given in and opted for 1 bed room on 1st and 2nd floors, and may do different plan on upper floors later.. 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: Elder Joined: 6/23/2009 Posts: 14,297 Location: nairobi
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Am wrote:obiero wrote:After much research and analysis, I have noted that a bedsitter four floored flat rather than three bedroom apartments on similar floor number is more cost effective. The basis of logic lies in the fact that more units in the same floor space provides more income.. Indeed rent collection may be more challenging on the bedsitters, but as the saying goes; high risk, high return True. Of course the area/location is a factor also but ovearall, bedsitters - one bedrooms - 2 bedrooms in that order are better in returns. Wanted to put up some bedsitters somewhere in east lands but the local Kanjora is against it in the area claiming young people expected to rent such are a problem for the locals. Have given in and opted for 1 bed room on 1st and 2nd floors, and may do different plan on upper floors later.. you can always trust the government to frustate a young man who has valid dreams COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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obiero wrote:Am wrote:obiero wrote:After much research and analysis, I have noted that a bedsitter four floored flat rather than three bedroom apartments on similar floor number is more cost effective. The basis of logic lies in the fact that more units in the same floor space provides more income.. Indeed rent collection may be more challenging on the bedsitters, but as the saying goes; high risk, high return True. Of course the area/location is a factor also but ovearall, bedsitters - one bedrooms - 2 bedrooms in that order are better in returns. Wanted to put up some bedsitters somewhere in east lands but the local Kanjora is against it in the area claiming young people expected to rent such are a problem for the locals. Have given in and opted for 1 bed room on 1st and 2nd floors, and may do different plan on upper floors later.. you can always trust the government to frustate a young man who has valid dreams I remember you complaining that NHC wants to put up 1brm flats in your estate since this would devalue Nyayo estate and bring in undesirable characters....and would also "spoil your image since people may think you live in the 1brm and not the 3bdrm". The Kanjora was right too in this case in protecting his neighbourhood (his voters) from degradation...
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