Investing in Real Estate in Kenya. Pay KES 780,000 and earn KES 6,300 monthly rent.
Enjoy property appreciation of 20% annually.
A 1/8th acre plot is purchased and 12 rooms constructed which can be converted into 4 no. 2 bedroomed units. Each room represents a share in the Limited Liability Company.
Payment Procedures.
1.After an expression of interest, the applicant will place the money in an escrow account held by one of the leading Construction finance banks in Kenya.
2. Once all the 12 shares/rooms have been confirmed by applicants, a Limited Liability company is formed with the 12 members as 12 shareholders, each with 1 share.
3. The LLC opens a bank account and the money is transferred into the account.
4. The Articles of Association will describe how the LLC will carry out its business on decision making. A majority vote will make the decisions of the LLC.
5. Suitable land that will cost KES 2m inclusive of legal fees, stamp duty and agent fees is sourced from around Nairobi in areas such as Syokimau, Kitengela, Athi River, Rongai, Kiambu, Ruiru, Juja, Ruai, Kikuyu, Ngong etc.
This is the average price of land that is not more than 1km from the main tarmac road. Such land ensures good rental income returns. For someone to invest in Real Estate within such land, they will be required to first obtain the land which becomes a financial obstacle when done individually.
By pooling resources as 12 shareholders, rental income from such land becomes a reality without first having to fork out the kes 2m land value.
More development opportunity within the same land is still available vertically, on the 1st, 2nd, 3rd, 4th and 5th floors. These will become future investment plans by the LLC shareholders.
Obtaining land will take 2 weeks to 1 month.
6. After the LLC obtains the land, drawings are submitted to the local authority for approval. This usually takes 2weeks to 1 month.
7.After approval, construction for the 12 rooms commences. Construction will take 3 to 4 months to complete.
8. After completion, tenants are rented out the rooms, either in 4 No.2 bedroomed units or as 12 no.self contained bedsitters. The 12 No. bedsitters can also be converted into fully furnished rooms for higher rental returns after a further kes 70,000 per room cost of furnishing.
Plot locations next to major roads will be ideal for fully furnished motel concept that gives higher returns on investment.
The 12 LLC shareholders will make this decision through majority rule as prescribed in the Articles of Association.
9. The 12 shareholders will decide on appointing the management company to collect the rent and repair and maintain the building.
10. The 12 shareholders can now collect their monthly rent through their appointed management company. Each shareholder can decide to sell their share and gain from the high property appreciation prices in Kenya.
Other decisions regarding day to day functions of the LLC will continue as specified in the Articles of Association. Communication will be through email and www.a4architect.com website forum.
Francis Gichuhi Kamau, Architect.
0721410684
info@a4architect.com
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