Careful architectural planning is required to determine the best return on investment between Apartment flats compared to maisonettes.
Example.
Assuming a hypothetical example of a narrow plot of land eg Off Outer ring road, Baba dogo area where we have plots measuring a 1/4 of an eighth, this plot can be designed into a 5 bedroom maisonette covering 4 floor levels. The same plot can be designed into 3 bedsitter units per floor covering 5 floor levels.
The built up area for both is the same, meaning the construction cost for both types should be the same, say approximately kes 10 million.
Rental income.
The rental income per floor for the bedsitters is kes 24,000. For 5 floors, total monthly income is kes 120,000.
Income per year is kes 1.44m. Return on investment is 7 years.
The rental income for the 5 bedroomed maisonette is kes 125, 000 in the surrounding areas. https://www.buyrentkenya.com/search?suburb_id=2127&category=3&category=4&type_id=2
The same plot can fit 2 narrow maisonettes each renting at kes 65,000 per month to bring in kes 130,000 monthly.
This brings the total rent for the year to kes 1.56 million per year. This works out to 6.4 years return on investment, better than the apartment flats bedsitters version.
Advantages.
For larger plots, say 1/8th acre and above, its possible to architecturally plan the plot to fit in several maisonette type buildings and sell off plan then use the proceeds to construct on the remaining portion from which you can collect monthly rental income.
In the case of apartment blocks, its not possible to finance through part sale since all the money is needed per each floor to complete it till occupation.
Architect Service.
a4architect.com offers architectural design advisory to plot owners on best methods to obtain financing for property development through innovative architectural design and feasibility study input. Each plot location requires its own unique architectural design so as to help unlock construction financing in the best way possible.
Architect Francis Gichuhi kamau.
info@a4architect.com
0721410684
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