REAL ESTATE INVESTMENT IN KENYA.
|
|
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| 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 | ||
| 1. SALE OPTION | ||
| TOTAL SALES FOR 12 UNITS |
12,400,000.00 |
|
| TOTAL EXPENDITURE |
9,330,800.00 |
|
| NET PROFIT |
3,069,200.00 |
|
| % Profit Margin |
32.89321387 |
|
| Take home amount. |
5,069,200.00 |
#VALUE! |
| 2. RENT OPTION. | ||
| Rent per Month |
76000 |
|
| Rent per year | 912,000.00 | |
| Return on Investment in years | 10.23 | |
| Return on investment minus land | 8.04 |
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 |
6333.333333 |
|
| Total monthly earnings per share. Fully furnished. | 15,208.33 | |
| Future Plans. | ||
| Average annual land appreciation rate |
20% |
|
| This represents a profitable chance to cash in on capital gains from sale of shares with high annual investment appreciation. | ||
| Fully furnished option. | ||
| Repayment period. Years | 4.26 | |
| New floor can be added on top of existing building every 4 years. | ||
| New shares can be invited to invest in upper floors each year. | ||
| Rent option. | ||
| Repayment period. Years | 10.23 | |
| New floor can be added on top of existing building every 10 years. | ||
| New shareholders can be invited to buy into investment of upper floors per year. | ||
| Project will be advertised to invite shareholders for a period of 3 months on www.a4architect.com | ||
| After 12 shares are all bought, at a cost of KES 780,000, Construction commences. | ||
| Construction period takes 3 months. | ||
| After completion, project is advertised online throughout duration and life . | ||
| Advertisement plays key role in success of real estate projects. | ||
| This advertisement attracts tenants for monthly and fully furnished rental options and for sale of shares options. | ||
| Advertisement enables shareholders to easily offload shares and new shareholders to buy into project. | ||
| Areas to invest in. | ||
| Areas where the land cost is within the kes 2m budget, inclusive of stamp duty, agency and legal fees. | ||
| Such areas include Syokimau, Kiambu, Juja, Kitengela, Rongai, Kikuyu, Ruaka. | ||
| Suitable land will be sourced and once found, agreed upon by members. | ||
| A reputable conveyancing lawyer will be appointed to enable to purchase by the members who will be owners of a registered company registered for this investment purpose. | ||
| Once the land is acquired, www.a4architect.com will design the building and submit the drawings to the relevant local authority for approval. | ||
| After approvals are granted, www.a4architect.ocm will engage a contractor who will be responsible for actual construction till completion. | ||
| The finishes and budget allocated is in the region of lower middle class that is in tandem with land value. | ||
| For areas where land value is high, finishes and budget will be amended to high class. This will affect the initial shareholder price accordingly. | ||
| After project completion, marketing will be done to attract tenancy. | ||
| Shareholders will decide whether to have fully furnished or usual rent option or a mix of both. | ||
| Each shareholder will own a sectional title for each room. | ||
| The architectural design will have 3 equal sized rooms per house which will be owned by 3 shareholders . | ||
| A shareholder can own more than 1 unit of share. There is no limit to the number of unit share a member can acquire. | ||
A shareholder can buy into as many different projects as possible.
Shareholders can agree to sell part of their unit shares to finance more development such as adding other floor levels on top of existing building.
Francis Gichuhi Kamau, Architect.
0721410684
info@a4architect.com
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