Month: August 2013

Residential Plots along Thika Road.
With the recent completion of Thika super highway, the travel time taken form Thika to Nairobi CBD has reduced to less than 1 hour.
Travel time to Thika road suburbs such as Kahawa Wendani, Kahawa Sukari, Githurai and Zimmerman have reduced to less than 30 minutes.
Compared to Ngong and Mombasa road, there is a huge difference in terms of time saving. Ngong road, to cover 25km to CBD takes about 2 hours, same as Mombasa road.
Waiyaki way , Kikuyu town, 25km awayf rom CBD takes only a few minutes to get to Nairobi CBD.
Most convenient areas.
Along Waiyaki way,Kiambu road and Thika super highway, these areas pose as the best for people working in Nairobi CBD.
The travel time is over 200% shorter than the rest.

Plots cost along Thika road.

The land value is highest closest to Nairobi CBD then reduces as it approaches Juja town then increases as it approaches Thika CBD.
Price per acre from Nairobi CBD to Thika town near main tarmac road for commercial development.
Nairobi CBD kes 300m
Ngara. kes 240m
Garden Estate. 40m
Kasarani.100m
Kahawa.30m
Ruiru. 30km to CBD. 20m
Juja.15m
Thika town.30m

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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/