Real Estate Investment Opportunity in Kenya.
Invest KES 590,000, 780,000 or 860,000. See more info on the financial breakdown here.
Get return on your investment in 4.2 years for Fully furnished apartment option on addition of a further KES 70,000 per room for furnishings.
Get Return on Investment in 10 years for Monthly rent option.
Gain from 20% property appreciation annually. You can sell after a few years to gain from the 20% annual increase in value.
| 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 ammount. |
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 registerd 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 ammended to high class. This will affect the initial shareholder price accordingly. | ||
| After project completion, marketing will be done to attact 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. | ||
| 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. | ||
Check here for more info on the sectional ownership of the 12 shares.
Francis Gichuhi Kamau, Architect.
0721410684
info@a4architect.com
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