Pooling Resources to Invest in Real Estate in Kenya.

Pooling Resources to Invest in Real Estate in Kenya.

Kenyan land cost continues to appreciate annually at over 20%. This means that the cost of housing continues to grow higher hence being out of affordability for many Kenyans.

Assumption.

Investor with kes 800,000.

With this amount , an investor can join 11 others here to make 12 members and each contribute kes 800,000 to own a 20m2 spacious bedsitter in an area where land cost is kes 1m per plot.

These are generally areas such as Rongai, Kitengela, Ruai but between 1 to 2 km from main tarmac road.
In such areas, a bedsitter can rent for kes6,500 per month.

The investor has an added advantage in that they can develop up to 4 or 5 more levels above their units for future rental income.

Investor with kes 900,000.

With this amount, an investor can be able to join 11 others and buy land worth kes 2m per 1/8th.
Such land will be located closer to the tarmac road in Rongai, Kitengela, Ruai, Kiambu, Juja etc.

Rental income from such bedsitters are in the range of kes 7,200 per month to enable a 10% annual ROI.
4 or 5 other units can be stacked up vertically in future to increase investment.

Investor with kes 1m.

This budget will enable 12 people to purchase a 3m per 1/8th plot and construct bedsitters.
A 3m eighth acre plot will be located very close to tarmac in a town such as Rongai, Kitengela, Syokimau, Juja, Kahawa, kiambu, Ngong or Kiserian.

Choice, Location and price of land.

The choice of land will depend on member agreement in the discussion forum here.
www.a4architect.com/discuss/

A potential investor can either start their own discussion topic with request to partner for a certain land price budget in a certain location e.g. kes 2m land along Mombasa road . Other interested investors can then give their contacts in the already started topic.

Ownership.

The 12 people will register a Limited Liability company with 12 directors and 12 shares. Each person will own 1/12 shares.
The LLC can then purchase the land. The LLC will be governed as per existing LLC laws in Kenya.

The articles of association will clearly describe the location and dimensions of each ower within the LLC, similar to the descriptions in Sectional title ownership.

Interested investors can visit www. a4architect.com/discuss/ and register then start a topic or join an existing discussion to give their contact details and views.

Francis Gichuhi Kamau, Architect.
info@a4architect.com
0721410684
www.a4architect.com/discuss/

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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  2 comments for “Pooling Resources to Invest in Real Estate in Kenya.

  1. emmajoe
    October 24, 2013 at 3:20 am

    I sent u an email wanted to know how to go about construction of bedsitter with capital of 6m.u reply will be really appreciated.

    • October 24, 2013 at 8:34 am

      do you already have the land? If yes, we will do a feasibility study to find out which size of bedsitter gives the best return on investment for your land location. We then design and lodge the drawings with local authority for county construction approval. After approval, you then choose to tender the construction to a contractor or self build of which we supervise till completion.

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