Best way to invest in Kenya’s real estate with kes 1m and below.
For a budget of kes 1m and below,the real estate investment possible is most likely located 40km and above from Nairobi CBD and over 1km from main tarmac road. Such areas include Kantafu, Isinya, Kajiado and deep within Juja.
5 to 10 years before development.
These areas will take over 5 to 10 years for development to encroach such that the areas can return good rents for construction.
Land price as advertised for sale in Kantafu, Isinya.
A budget of kes 1m will get you a 1/4 to a 1/2 acre plot in Isinya depending on how close the plot is to the tarmac.
A budget of kes 1m will also get you a 1/4 acre or 1/2 acre plot depending on how close the land is to the main tarmac road.
50 km from Nairobi CBD.
Both Kantafu and Isinya are 50km from Nairobi CBD.
This means that it’s not possible to construct rental properties here.
As we speak, there are no rental properties in these areas.
No return on kes 1m investment.
This means that the kes 1m used to buy the land will lie idle for the next 5 to 10 years as we wait for these areas to grow such that its viable to develop rentals.
For a prudent investor, its wiser to invest in real estate where returns are possible within 6 months of your investment.
Location, Location, Location.
The cliché saying goes, there are 3 important factors to consider when investing in real estate.
Kes 1m invested in real estate near Nairobi CBD.
Land near Nairobi CBD, where its possible to get good rental income, is quite expensive. These areas include Kitengela,Rongai, Syokimau, Kahawa and Kiambu.
A good plot will cost kes 2m. This is over the kes 1m budget.
Solution on how best to invest.
To circumvent this problem, a4architect.com has come up with a unique method whereby several like-minded Kenyans can meet and discuss on how to pool resources and buy the expensive plot and share the rental income.
See here for details.
Since location is the most important factor in real estate, several people can share the plot both horizontally and vertically. The plot has another 5 to 6 multiplicity if constructed vertically.
New topics by Investors on the forum.
A minimum of 12 people can meet in the forum , set up a discussion topic such as this
They can then decide which plot to buy and share.
With this option, the kes 1m budget will immediately begin to return its investment at an average rate of 10% per annum. In 10 years, all the investment money will have been recouped.
On the contrary, the person who invested in land in Isinya and Kantafu will still not have began returning their investment after the 10 years.
Francis Gichuhi Kamau, Architect.