Real Estate Investment. 3 Land Price Options. KES 1, 2 and 3 m per Plot.

LAND KES 1 M PER PLOT. contribution per share.KES 587,422.67
Monthly earnings per share .KES

4800

Cost Item

Kshs

%

Land

1,000,000.00

14.18626452

Preliminary

120,000.00

1.702351742

Construction

5,040,000.00

71.49877317

External Works

100,800.00

1.429975463

Contingency

75,600.00

1.072481598

Professional fees

403,200.00

5.719901854

Project Management fees

50,400.00

0.714987732

Marketing

250,000.00

3.54656613

Financial Charges

9,072.00

0.128697792

Total

7,049,072.00

100

Financing Plan

Kshs

%

Developer

7,049,072.00

100

0.00

0

Debt Finance

0.00

0

Presales

0.00

0

Total

7,049,072.00

100

PROFIT
3 OPTIONS AS BELOW.
1. SALE OPTION
TOTAL SALES FOR 4 UNITS

8,800,000.00

TOTAL EXPENDITURE

7,049,072.00

NET PROFIT

1,750,928.00

% Profit Margin

24.83912776

Take home ammount.

2,750,928.00

2. RENT OPTION.
Rent per Month

57600

57600

Rent per year 691,200.00
Return on Investment in years 10.20
Return on investment minus land 8.75

6,049,072.00

3. FULLY FURNISHED OPTION
Fully furnished.
Per bedroom daily

1000

Per unit daily

3000

Per 4 units daily

12000

Per 4 units yearly 4,380,000.00
Per 4 units 50% occupancy 2,190,000.00
4 units 50% occupancy. Monthly 182,500.00
Return on Investment in years 3.22
Number of rooms

12

Number of ownership shares

12

Total value per share 587,422.67
Total monthly earnings per share . Rent

4800

Total monthly earnings per share. Fully furnished. 15,208.33
LAND KES 2M PER PLOT contribution per share.KES 777,566.67
Monthly earnings per share .KES

6300

Cost Item

Kshs

%

Land

2,000,000.00

21.43438933

Preliminary

120,000.00

1.28606336

Construction

6,000,000.00

64.303168

External Works

120,000.00

1.28606336

Contingency

90,000.00

0.96454752

Professional fees

480,000.00

5.14425344

Project Management fees

60,000.00

0.64303168

Marketing

450,000.00

4.8227376

Financial Charges

10,800.00

0.115745702

Total

9,330,800.00

100

Financing Plan

Kshs

%

Developer

9,330,800.00

100

0.00

0

Debt Finance

0.00

0

Presales

0.00

0

Total

9,330,800.00

100

PROFIT
3 OPTIONS AS BELOW.
1. SALE OPTION
TOTAL SALES FOR 4 UNITS

12,400,000.00

TOTAL EXPENDITURE

9,330,800.00

NET PROFIT

3,069,200.00

% Profit Margin

32.89321387

Take home ammount.

5,069,200.00

2. RENT OPTION.
Rent per Month

75600

Rent per year 907,200.00
Return on Investment in years 10.29
Return on investment minus land 8.08

7,330,800.00

3. FULLY FURNISHED OPTION
Fully furnished.
Per bedroom daily

1000

Per unit daily

3000

Per 4 units daily

12000

Per 4 units yearly 4,380,000.00
Per 4 units 50% occupancy 2,190,000.00
4 units 50% occupancy. Monthly 182,500.00
Return on Investment in years 4.26
Number of rooms

12

Number of ownership shares

12

Total value per share 777,566.67
Total monthly earnings per share . Rent

6300

Total monthly earnings per share. Fully furnished. 15,208.33
Fully Furnished option.
unit cost
Bed

3

36000

Beddings

3

15000

curtains

3

9000

TV

3

75000

Table and chair

3

45000

Contingencies/cutlery

3

30000

TOTAL per 3 share unit 210,000.00
Cost per unit share 70,000.00
This cost should be added to the initial share price when members choose to change form normal monthly rent to Fully Furnished option.
LAND KES 3 M PER PLOT. contribution per share.KES 860,900.00
Monthly earnings per share .KES

7000

Cost Item

Kshs

%

Land

3,000,000.00

29.0393774

Preliminary

120,000.00

1.161575096

Construction

6,000,000.00

58.07875479

External Works

120,000.00

1.161575096

Contingency

90,000.00

0.871181322

Professional fees

480,000.00

4.646300383

Project Management fees

60,000.00

0.580787548

Marketing

450,000.00

4.355906609

Financial Charges

10,800.00

0.104541759

Total

10,330,800.00

100

Financing Plan

Kshs

%

Developer

10,330,800.00

100

0.00

0

Debt Finance

0.00

0

Presales

0.00

0

Total

10,330,800.00

100

PROFIT
3 OPTIONS AS BELOW.
1. SALE OPTION
TOTAL SALES FOR 4 UNITS

12,400,000.00

TOTAL EXPENDITURE

10,330,800.00

NET PROFIT

2,069,200.00

% Profit Margin

20.02942657

Take home ammount.

5,069,200.00

2. RENT OPTION.
Rent per Month

84000

84000

Rent per year 1,008,000.00
Return on Investment in years 10.25
Return on investment minus land 7.27

7,330,800.00

3. FULLY FURNISHED OPTION
Fully furnished.
Per bedroom daily

1000

Per unit daily

3000

Per 4 units daily

12000

Per 4 units yearly 4,380,000.00
Per 4 units 50% occupancy 2,190,000.00
4 units 50% occupancy. Monthly 182,500.00
Return on Investment in years 4.72
Number of rooms

12

Number of ownership shares

12

Total value per share 860,900.00
Total monthly earnings per share . Rent

7000

Total monthly earnings per share. Fully furnished. 15,208.33
Francis Gichuhi (692 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email info@a4architect.com. Telephone +254721410684


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