Karen. Furnished home vs Rental home Return on Investment

PRISM DESIGNS AFRICA
www.a4architect.com

Phone: +254 721 410684

Karen road,

Nairobi.

info@a4architect.com

FULLY FURNISHED HOME OPTION.
UNIT TYPE 230M2 2 ACRES. 8 UNITS
Cost Item

Kshs

%

Land

0.00

0

0.00

0

Construction

108,560,000.00

73.19230645

Marketing

680,000.00

0.458463231

Financial Charges

39,081,600.00

26.34923032

Total

148,321,600.00

100

Financing Plan

Kshs

%

Developer

39,761,600.00

26.80769355

Debt Finance

108,560,000.00

73.19230645

Presales

#REF!

#REF!

Total

148,321,600.00

#REF!

PROFIT
RENT PER UNIT PER DAY

20,000.00

RENT PER 8 UNITS PER DAY

160,000.00

RENT PER MONTH

4,800,000.00

RENT PER YEAR

57,600,000.00

RENT PER YEAR AT 70% OCCUPANCY

40,320,000.00

TOTAL EXPENDITURE

148,321,600.00

RETURN ON INVESTMENT. YEARS

3.68

NOTE. PROFIT FROM CONFERENCE ROOMS, OFFICES, FOOD AND BEVERAGES TO OFFSET SALARIES AND MAINTENANCE FEES
AFTER 3.7 YEARS, THE PROPERTY WILL OFFSET ALL LOANS AND THEREAFTER
A PROFIT OF KES 40M PER YEAR REALISED.
RENTAL OPTION
UNIT TYPE 230M2 2 ACRES. 8 UNITS
Cost Item

Kshs

%

Land

0.00

0

0.00

0

Construction

97,520,000.00

73.15433825

Marketing

680,000.00

0.51009998

Financial Charges

35,107,200.00

26.33556177

Total

133,307,200.00

100

Financing Plan

Kshs

%

Developer

35,787,200.00

26.84566175

Debt Finance

97,520,000.00

73.15433825

Presales

#REF!

#REF!

Total

133,307,200.00

#REF!

PROFIT
RENT PER UNIT PER DAY

4,666.67

RENT PER 8 UNITS PER DAY

37,333.33

RENT PER MONTH

1,120,000.00

RENT PER YEAR

13,440,000.00

RENT PER YEAR AT 85% OCCUPANCY

11,424,000.00

TOTAL EXPENDITURE

133,307,200.00

RETURN ON INVESTMENT. YEARS

11.67

NOTE. PROFIT FROM CONFERENCE ROOMS, OFFICES, FOOD AND BEVERAGES TO OFFSET SALARIES AND MAINTENANCE FEES
AFTER 11.7 YEARS, THE PROPERTY WILL OFFSET ALL LOANS AND THEREAFTER
A PROFIT OF KES 13.4M PER YEAR REALISED.
This time period is much longer than during option1, fully furnished homes.
11.7years compared to 3.7 years.
The yearly rental yield is much lower than during option1, fully furnished homes.
kes 13.4m compared to kes 40m.

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