HOW TO MAKE MAXIMUM USE OF A 1/8TH ACRE 50 X 100 PLOT FOR RESIDENTIAL PURPOSES.
The average minimum size of a land subdivision in Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, Somaliland, Botswana, and Senegal is 1/8th acre 50 feet by 100 feet plot size.
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| From DIAMOND HOUSE V 2.5 |
This plot can be designed to maximize the space. For residential purposes, the plot can be designed to fit in 2 units each comprising of 3 bedrooms with enough car parking for about 4 cars while leaving ample space for a front-yard landscaped garden.
For high-rise units on a 50 by 100 feet plot, see here for more details
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| From DIAMOND HOUSE V 2.5 |
REASONS TO CONSTRUCT BUNGALOW AS OPPOSED TO HIGH-RISE
For plots located in a low-rise residential area, the best option is to construct 2 units within the 50 by 100 feet lot.
- Bungalow type houses carry less weight than the high-rise house types so the foundation costs are greatly reduced.
- Bungalow type houses also do not have the expensive concrete suspended slab so the roofing costs are also greatly reduced.
- It’s easier to construct bungalow houses in phases.
PHASED CONSTRUCTION
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| From DIAMOND HOUSE V 2.5 |
The 2 units within the 50 by 100 feet plot can be constructed in phases that suit the owner’s budget.
Each of the 2 units can comprise a complete phase.
Each unit is further divided into 3 phases-phase 1 comprising of 1 bed roomed 49m2, phase 2, two-bed roomed 67m2 and phase 3-three-bedroomed 92m2.
Phase 1[49m2] one bed roomed is further divided into 13 sub-phases as described below:
This way, the Phase 1 can be built slowly using personal savings as per the sub-stages .
Contracts for construction can be made for each particular phase as per the below construction costs.
13 SUB-PHASES OF CONSTRUCTION
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DIAMOND HOUSE BY WWW.A4ARCHITECT.COM |
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APPROXIMATE COSTS PER SUB-PHASE |
AMMOUNT -LOW COST FINISHES |
AMMOUNT -MIDDLE COST FINISHES |
AMMOUNT -HIGH COST FINISHES |
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1 |
Substructures[Foundations] | 216,766.44 | 324,198.93 | 431,631.42 |
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2 |
Reinforced Concrete Frame[Ring beam] | 79,252.80 | 118,531.60 | 157,810.40 |
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3 |
Superstructure walling-masonry stone | 99,181.82 | 148,337.73 | 197,493.63 |
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4 |
Roof structure, covering, finishes and rainwater goods-GCI roofing sheets | 86,453.04 | 129,300.38 | 172,147.72 |
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5 |
Windows-louvre | 44,505.60 | 66,563.20 | 88,620.80 |
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6 |
Doors | 64,642.56 | 96,680.32 | 128,718.08 |
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7 |
External finishes | 29,986.56 | 44,848.32 | 59,710.08 |
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8 |
Floor Finishes-cement screed | 12,289.20 | 18,379.90 | 24,470.60 |
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9 |
Wall Finishes-plaster on paint | 42,408.00 | 63,426.00 | 84,444.00 |
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10 |
Ceiling Finishes | 50,789.28 | 75,961.16 | 101,133.04 |
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11 |
Sanitary Fittings | 34,108.80 | 51,013.60 | 67,918.40 |
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12 |
project management | 34,627.50 | 51,789.38 | 68,951.25 |
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13 |
Septic tank, Electrical Wiring,Plumbing | 165,300.00 | 247,225.00 | 329,150.00 |
| Sub Total | 960,311.60 | 1,436,255.51 | 1,912,199.42 | |
| CONSTRUCTION SUPERVSION | 24,007.79 | 35,906.39 | 47,804.99 | |
| Total Estimate | 984,319.39 | 1,472,161.90 | 1,960,004.41 | |
PROFIT/RETURN ON INVESTMENT.
Within the 50 by 100 plot, the2 houses can be constructed for 4 scenarios:
4 SCENARIOS:
A. Both houses for sale
B. Only 1 house for sale while the other is set for owner occupation
C.Only 1 house is set for rental while the other is set for owner occupation
D. Both houses to be rented out.
We will analyze the scenarios here.
ASSUMPTIONS:
– that the land cost is KES 500,000 for a 1/8th plot
-that the a4architect.com Diamond House design is used.
-that the a4architect.com Diamond House Phase 1 –one bed roomed unit [49m2] is constructed
-that interest rate is 20% where borrowing is necessary.
SCENARIO A-BOTH HOUSES FOR SALE.
This option is good for the entrepreneurial parson who wants to make a quick profit within a short time. Borrowing from Banks is recommended.
| OWNER SELLING BOTH UNITS | ||
| INCLUSIVE OF COST OF BORROWING | ||
| Cost Item |
Kshs |
% |
| Land |
500,000.00 |
11.7837262 |
| Preliminary |
60,000.00 |
1.414047144 |
| Construction |
2,646,000.00 |
62.35947907 |
| External Works |
26,460.00 |
0.623594791 |
| Contingency |
52,920.00 |
1.247189581 |
| Professional fees |
211,680.00 |
4.988758325 |
| Project Management fees |
52,920.00 |
1.247189581 |
| Legal fees |
26,460.00 |
0.623594791 |
| Marketing |
137,500.00 |
3.240524706 |
| Financial Charges[20% of construction cost] |
529,200.00 |
12.47189581 |
| Total |
4,243,140.00 |
100 |
| Financing Plan |
Kshs |
% |
| Developer+a4arcitect.com |
767,200.00 |
18.08094949 |
| Equity Provider |
0.00 |
0 |
| Debt Finance |
2,925,940.00 |
68.95695169 |
| Presales |
550,000.00 |
12.96209882 |
| Total |
4,243,140.00 |
100 |
| PROFIT | ||
| TOTAL SALES FOR 2 UNITS |
5,500,000.00 |
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| TOTAL EXPENDITURE |
4,243,140.00 |
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| NET PROFIT |
1,256,860.00 |
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| NET TAKE-HOME AMMOUNT-profit +land cost |
1,756,860.00 |
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| PROFIT MARGIN |
29.62098823 |
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SCENARIO B-ONLY ONE HOUSE IS FOR SALE WHILE THE OTHER IS SET FOR OWNER OCCUPATION.
This option is best for financing owner occupation since the second house finances the construction of the owner occupied house.
The land owner is required to add a small amount [KES 840K] to the investment so as to own his/her own home worth KES 2.74m in the market.
SCENARIO C-ONLY ONE HOUSE IS SET FOR RENTAL WHILE THE OTHER IS SET FOR OWNER OCCUPATION.
This is recommended for those who would like to use their personal savings to construct using 3 no. phases and 13 no. Sub-phases as described above.
The repayment period is 21 years at a rental income of KES 12,000 per month. Rent increases annually so the repayment period will be eventually shortened.
| OWNER RENTING ONLY ONE HOUSE AND LIVING IN THE OTHER | ||
| WITHOUT COST OF BORROWING | ||
| Cost Item |
Kshs |
% |
| Land |
500,000.00 |
14.08458639 |
| Preliminary |
60,000.00 |
1.690150367 |
| Construction |
2,646,000.00 |
74.53563119 |
| External Works |
26,460.00 |
0.745356312 |
| Contingency |
52,920.00 |
1.490712624 |
| Professional fees |
211,680.00 |
5.962850495 |
| Project Management fees |
52,920.00 |
1.490712624 |
| Legal fees |
0.00 |
0 |
| Marketing |
0.00 |
0 |
| Financial Charges[20% of construction cost] |
0.00 |
0 |
| Total |
3,549,980.00 |
100 |
| Financing Plan |
Kshs |
% |
| Developer+a4arcitect.com |
698,450.00 |
19.67475873 |
| Equity Provider |
0.00 |
0 |
| Debt Finance |
2,851,530.00 |
80.32524127 |
| Presales |
0.00 |
0 |
| Total |
3,549,980.00 |
100 |
| PROFIT | ||
| TOTAL SALES FOR 0 UNIT |
0.00 |
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| TOTAL EXPENDITURE |
3,549,980.00 |
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| NET PROFIT |
-3,549,980.00 |
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| NET ADDITIONAL AMMOUNT-profit +land cost |
-3,049,980.00 |
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| PROFIT MARGIN | ||
| ASSUMED RENTAL INCOME-KES12,000 PER MONTH | ||
| PAY BACK PERIOD |
-254.165 |
-21.18041667 |
| 21 YEARS | ||
| RENTS INCREASE ANNUALY SO THIS TIME WILL BE SHORTENED. | ||
SCENARIO D-BOTH HOUSES RENTED OUT
This scenario is best for the investor who wants to have a low-risk, safe and secure rental property income. The repayment period is 10.5 years. This period will be shortened since rent increases yearly.
| OWNER RENTING BOTH HOUSES | ||
| WITHOUT COST OF BORROWING | ||
| Cost Item |
Kshs |
% |
| Land |
500,000.00 |
14.08458639 |
| Preliminary |
60,000.00 |
1.690150367 |
| Construction |
2,646,000.00 |
74.53563119 |
| External Works |
26,460.00 |
0.745356312 |
| Contingency |
52,920.00 |
1.490712624 |
| Professional fees |
211,680.00 |
5.962850495 |
| Project Management fees |
52,920.00 |
1.490712624 |
| Legal fees |
0.00 |
0 |
| Marketing |
0.00 |
0 |
| Financial Charges[20% of construction cost] |
0.00 |
0 |
| Total |
3,549,980.00 |
100 |
| Financing Plan |
Kshs |
% |
| Developer+a4arcitect.com |
698,450.00 |
19.67475873 |
| Equity Provider |
0.00 |
0 |
| Debt Finance |
2,851,530.00 |
80.32524127 |
| Presales |
0.00 |
0 |
| Total |
3,549,980.00 |
100 |
| PROFIT | ||
| TOTAL SALES FOR 0 UNIT |
0.00 |
|
| TOTAL EXPENDITURE |
3,549,980.00 |
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| NET PROFIT |
-3,549,980.00 |
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| NET ADDITIONAL AMMOUNT-profit +land cost |
-3,049,980.00 |
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| PROFIT MARGIN | ||
| RENTAL INCOME-KES24,000 PER MONTH | ||
| PAY BACK PERIOD |
-127.0825 |
-10.59020833 |
| 10.5 YEARS | ||
| RENTS INCREASE ANNUALY SO THIS TIME WILL BE SHORTENED. | ||
PROCEDURE FOR IMPLEMENTATION OF THE PROJECT.
After the land is acquired, minimum size of 1/8th 50 by 100 feet plot, the above described scenarios can be implemented. This can be done on the 1/8th acre plot and can be increased proportionately to the size of the plot. For example, the project can be increased to 14 units within 1 acre plot, 140 units within a 10 acre plot, and 1400 units within a 1000 acre plot depending on the land size.
STEP 1.
Choose a scenario that best fits your budget or contact www.a4architect.com for assistance on the best scenario for you. You can choose to send email to info@a4architect.com , or visit our offices. Also, choose the cost of finishes that you want for your house i.e. low, middle or high cot finishes as described in the above 13-sub-phases of construction.
STEP 2.
Scan and email to info@a4architect.com the survey plan, mutation plan, deed plan or any survey drawing that has the plot dimensions.
STEP 3.
On receipt of the deed plan, mutation plan or survey plan that shows your plot dimensions, www.a4architect.com will email you the agreement for services as described by the Laws of Kenya.
https://www.a4architect.com/architectural-consulting-service/
STEP 4.
After the agreement is signed, www.a4architect.com will proceed to design the project to the agreed size of land and once through each phase of design, will email soft copies in .pdf format and/or hard copies by Courier service [DHL. Securicor, Wells Fargo, Post Office, e.t.c] to your physical address.
Payments can be delivered through Bank to Bank transfer, Mpesa, Western Union, Money Gram or Cash delivery.
STEP 5.
After receipt of the hard-copy drawings, you can proceed to submit the drawings to the relevant Local Authority for approval. Any changes and recommendations by the local authority is to be reported to us so that we can make the necessary amendments and re-send the documents.
STEP 6.
After local authority approvals, construction contract can be signed and works can commence as per the above described 13-sub phases of construction.
Feel free to contact www.a4architect.com for further information.
Architect Francis Gichuhi Kamau.
+254721410684
HOW TO MAXIMIZE LAND USE ON A 1/8TH ACRE 50 X 100 FEET PLOT.
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