Architectural design of 5 independent sectional properties. Each property is designed to hold a 4 bedroomed maisonette or 6 bedsitter units as below.
Maisonette or 6 no. Bedsitter units, 1 bedsitter per floor for 6 floor levels.
Sale of sectional Property.
A4architect.com will then sell off 4 sectional property portions to raise kes 6.4m. Each portion is valued at kes 1.6m. 5 portions in the 1/8th plot are valued at kes 8m.
Land Owner rental income.
With the kes 6.4m raised from sale of the 4 sectional portions, land owner can now construct the 6 bedsitter units or maisonette unit on the remaining 1 portion .
This can raise in kes 60,000 per month in rental income for the land owner.
Contacts.
Land owners with 1/8th acre portion of plots in prime areas such as Ruaka, Ruiru, Ruai, Kikuyu, Umoja, Rongai, Nakuru, Mombasa etc are encouraged to contact a4architect.com below for possibilities of ensuring they benefit from perpetual rental income from their land without having to incur heavy bank debt or denting their personal savings.
Land owners with prime 1/8th plots located in fast growing areas can now earn rental income without having to borrow construction financing from banks or using own personal savings through the sectional property joint venture method designed by a4architect.com.
The process is simple.
1.Feasibility.
A4architect carries out feasibility study to ensure the plot of land is located in a good neighbourhood that can attract potential sectional property buyers. Areas such as Ruai, Ruiru, Kitengela, Mtwapa, Kilifi etc where a 1/8th plot of land sells for at least kes 4m and above are perfect for using this method to raise construction capital.
2. Sectional Property Subdivision.
a4architect.com comes up with 5 sectional property subdivisions in the land that can be resold to buyers who will then construct maisonettes or bedsitters depending on their liking.
5 such maisonettes within the 1/8th plot.
3. Construction Financing
a4architect.com works with land owner to sell off 4 portions of sectional properties, rising approximately kes 4m which the land owner can use to construct a 4 bedroomed maisonette or 4 bedsitters on the remaining portion on his land. This can potentially bring in kes 40,000 per month to the land owner.
Rental Income.
The land owner can now earn rental income in perpetuity without having to incur construction loans or having to save money to build.
Contacts.
Land owners willing to opt in for this Sectional property Joint Venture construction financing can contact a4architect.com below.
Property development in Kenya requires huge financial outlay. A4architect.com works with land owners who might not be able to secure bank loans or have enough personal savings to construct on their land . A4architect.com designs sectional properties within the land then works with the land owner to sell off using off plan method some portions of the land, usually like 2/3rds of the land so as to unlock capital to build on the remaining 1/3rd portion of the land.
Feasibility.
With this method, the land owner is able to develop rental property in their land which, depending on the feasibility study done by a4architect.com, can be used as residential or commercial. Plots in a busy town or main road can be designed to be commercial and end up to be used as shops and offices, while plots abit far from towns and main roads can be purposed into bedsitters or maisonettes for residential use.
The process is simple. 3 steps.
Land owner contacts a4architect.com where a4architect.com checks feasibility and viability of the land.
If land is viable, a4architect.com creates sectional proerties out of the land then works with land owner to resell off 2/3rds of the sectional properties to unlock capital.
a4architect.com constructs either maisonettes or bedsitter units for land owner on remaining 1/3rd portion of the plot which land woner can continue to gain from rent in perpetuity.
Contacts.
Land owners willing to develop their land in this method can contact a4archtect.com from the below contacts.
The plot measures 50m by 25m, approximately 1/4 acre in size.
Survey Map for the site.
Sectional Properties.
The 1/4 acre plot is further subdivided into 24 sectional properties.
The 24 Sectional properties can be developed into 4 bedroomed maisonettes or 4 bedsitter units per floor.
Land Value.
The 1/4 acre plot is valued at kes 15m.
If owner was to dispose it to the market at market rate, it would raise kes 15m.
Sectional Title value addition.
Each sectional title is worth kes 850,000. 24 sectional plots will bring in kes 20m.
This is a value addition of approximately kes 5 million.
Rental units for land owner.
For land owner to construct 7 units of 2 bedroomed typology for rent, he will require kes 15m. To achieve 15m, owner has 2 options, to sell off the 1/4 acre plot valued at kes 15 m and remain with no land to build or sell off 17 portions of the sectional property and remain with 7 portions on where he can construct his 2 bedroomed units for rent at zero debt.
Rental Income.
Utawala area, 2 bedroomed units rent for kes 25,000 per month. Land owner can now earn kes 175,000 per month from rental income without borrowing from the bank, all 100% self financed through the a4architect.com Joint venture sectional property method.
Contacts.
Land owners with prime land , willing to check out the possibility of 100% self financing through the a4architect.com method can contact a4architect.com below.
The cost of construction finance loans in Kenya keeps rising. The paper work and conditions needed for a land owner to fulfill before loan issuance such as meeting 30% cost of construction, another income sufficient to service debt during the construction process etc. keeps many people away from accessing bank loans for constructing.
Self Funding.Zero Debt.
a4architect.com offers a solution to this through self funding Joint Venture financing method whereby the land owner subdivides his property into several sectional property subdivision then sells approximately 2/3rds of the properties to raise the cash needed to construct on the remaining 1/3rd of the property.
Sectional Property Resale.
a4architect.com works with land owners to come up with the sectional properties, raise the capital through resale of the sectional properties and design, manage to completion the 1/3rd portion remaining so that land owner can begin to benefit from rental income.
Forced Bank Sale.
A4architect.com sectional property debt free construction financing method ensures land owner develops his property without the risk of bank attachment in case of non repayment of loans. a4architect.com assists land owner to mobilize their current resources to unlock capital for construction without debt.
Land Compensation.
The loss of horizontal surface of land to sectional property buyers is compensated by constructing vertically to the maximum number of storeys allowed. Around Nairobi and many other towns in Kenya, residential areas such as Rongai, Umoja, Ruiru, Mtwapa, Nyali, a land owner can develop up to 8 floor levels. This vertical increase in new floor area can be developed to bring in additional rental income in future.
Contacts.
Land owners that would like more information on constructing debt free can contact a4architect.com below.
100% Financing for construction projects on Joint Venture basis method is achieved through sharing ratio[usually 70%:30%] on the project value. For example, a 10 maisonette project on a 1/4 acre plot will have 7 units going towards financing the 3 units which will remain with the land owner for rent collection or sale as per their liking.
Profit Sharing Ratio.
a4architect.com arranges for land owners with prime land in urban areas around the country to realise and fund their construction projects through using 70% of their units to finance the remaining 30% . The 70% of the units are usually sold to the market under sectional property subdivisions .
Feasibility Study.
a4architect.com carries out initial feasibility studies to determine the viability of a piece of land to self fund through sectional ownership. Generally, land located in a prime location, near a main tarmac road or a shopping center, surrounded by high rise buildings and maisonettes, is usually ripe for self funding through sectional property resale method.
Land Size.
Any land size, from 1/8th acre to hundreds of acres, is viable to self fund through this method as long as its located in a prime developed area that can attract sectional property buyers. Areas such as Nairobi, Nakuru, Nyeri, Mombasa, Kilifi, Diani,Malindi, Kisumu,Kakamega, Meru are good locations for self funding of projects.
Feel free to contact a4architect.com below for feasibility study on your land to check how viable it is to self fund.
Investing in Kenyan Real estate poses several risks as outlined below.
Market Risk.
This risk is associated with feasibility. The investment is supposed to have a feasibility study done so as to know and ascertain which market segment to target. For example, an investment in Kileleshwa/Kilimani will have a different design from an investment in Kiayole/Dandora areas due to different market segment targeting.
a4architect.com carries out detailed feasibility studies for investors. The a4architect.com sectional property investment where investors can own a maisonette or bedsitter apartment block under sectional title usually has detailed feasibility studies done to ensure the right customers are targeted for the investors. In the coast region, Nakuru, Nairobi, the Airbnb target market is usually a safe bet.
Physical Property Risk.
These are risks such as construction structural failure like the one that happened recently[2021] at a condominium in Miami
A4architect.com ensures that all buildings designed and constructed for investors in the sectional property investment go through the highest engineering designs standards as stipulated in the Building Code.
A4architect.com also designs the buildings in such a way that long term maintenance is reduced through careful selection of building materials and finishes that are long lasting and cost effective.
Liquidity Risk.
This measures how easy and fast it is to sell off the property after investment. It also measures how much the property is supposed to appreciate in value after investment. A4architect.com ensures that the sites available for sectional property investment are located in prime areas such as close to beaches around Diani or close to Eastern Bypass in Utawala area. Investors in such locations can easily find a buyer for their properties and at a higher sale price than they bought it since location is very prime. For example, a maisonette sectional property land located at Utawala, 200meters from the Eastern Bypass, selling at kes 750,000 per sectional property, will appreciate in value and easily offload into the market faster than say a kes 750,000 plot of land located further down Kangundo road in Malaa area.
The Utawala sectional property, even tough smaller in surface area than the Malaa larger one, has got more potential since investor can opt to build own residence and easily commute to and fro to work safely or build bedsitters or a 4 bedroomed maisonette and rent at a good rate compared to the Koma/Malaa/Joska plot where commuting to and fro to work and getting a good rental income is a tall order.
Invest now.
A4architect.com Sectional Properties are available for investors from various ranges between kes 400,000 to kes 3,000,000 per sectional property in different prime locations around the country.
Investing in Real Estate in Kenya requires diversification so as to ensure constant return on investment. Diversification of locations such that there is a vacation rental in the Kenyan coast/Diani/Kilifi/Watamu, vacation rental in Nariobi, Nakuru, Kisuu, Busia etc.
This can be achieved without having to break a bank by simply investing in sectional properties offered by a4architect.com.
Sectional Property.
Ministry of Lands led by CS Farida Karoney recently enacted the sectional properties act that allows for people to own title deeds to maisonettes standing on less than a 1/8th acre 50ft by 100feet plot.
a4architect.com enables real estate investors to take advantage of this new law to own maisonettes in various prime locations around the country at very affordable rates.
A4architect.com compiles available prime lands around the country that are available for investors to come in and own. In Diani, a 1/8th acre around Diani Beach road close to the beach goes for kes 5m. This maybe quite steep and out of reach for many investors or the land may be too big for 1 investor. A4architect.com makes it easier for investors by deviding the plot into 4 parts , creating 4 maisonettes whereby the kes 5m price is divided into 4 parts , coming to kes 1.25m per land portion.
Sectional Property Maisonette. 4 units within a 1/8th acre plot.
Once an investor purchases the land portion on which their maisonette will stand, they have their own sectional title and can either resell the vacant portion or build their maisonette slowly in phases over the years depending on their financial capability.
A 1/8th acre plot in a very prime location in Nairobi fronting a major highway goes for kes 10m. A4architect.com enables easier access to such a property by deviding the plot into 4 parts and reducing the acquisition of the maisonette plot to kes 2.5m.
Plot owner can now develop their property owned under sectional title at their pace.
Same case with other prime locations in Nyeri, Nakuru, Meru, Kisumu, Kakamega and Busia.
As the old adage says, there are 3 important aspects to consider in real estate investments.
1.location
2 location.
3. location.
Once investors get it right on location, they can be assured of near 100% occupancy rate for their investment and over 25% land appreciation rates per annum.
Other locations available.
Investors can contact a4architect.com for more available real estate investment sectional property deals around the country.
