Housing is a physiological need that every human needs.
The demand for housing will increase in tandem with the growing population, accelerated by the fact that land surface remains constant hence more pressure on land to be sustainable.
The current trend worldwide is for Rural to Urban Migration, pushing more and more people into urban areas. This has resulted to Gentrification of most urban areas.
Gentrification, the process where a neighborhood becomes popular with wealthier people, and the poor residents are priced out
Urbanization
A majority and growing proportion of the world’s population is living in urban areas. The share of the world’s population living in urban areas is expected to increase from 55 per cent in 2018 to 60 per cent in 2030 (UN, 2018). In 1950, 30 per cent of the global population was living in urban areas.
Most of the world’s fastest growing cities are in Asia and Africa. Between 2018 and 2050, the urban population of Africa is projected to triple and that of Asia to increase by 61 per cent, so that by 2050 most of the world’s urban population will be concentrated in Asia (52%) and Africa (21%}
Solution.
A4architect.com offers a solution to housing for land owners in urban areas owning small plots but lacking the finance to construct. A4architect.com works with the land owners to create sectional properties out of these small plots of land, sell a portion of the sectional properties to the market and use the proceeds to finance construction of their own houses.
Get in touch.
Land owners looking to resolve a housing problem around urban areas in Kenya can contact a4architect.com using the below contacts.
The easiest way to start a rent-free journey in Kenya is to buy 2 portions of and, wait for a few years for the prices to appreciate then sell off one portion and use the proceeds to build on the other vacant portion left.
In case one only has 1 portion, its still possible to use the same concept to raise capital to build your rent free house or a house to bring in rental income.
Sectional Property.
a4architect.com utilizes the new sectional property laws in Kenya to come up with say 5 sectional property portions in a prime 1/8th piece of land whereby the land owner can sell off the 4 portions to raise enough capital to build on the remaining portion.
This is an easy way to ensure you own your house and avoid the monthly landlord visits when rent is due.
Location
Any prime location around the country where the price of the 1/8th portion of land is more than kes 4m is good for this method of raising capital since the portions sold off through sectional properties act ownership will raise sufficient funds to build a moderate 2 bedroomed house on the remaining portion.
Contacts.
Land owners willing to try this method of home ownership can contact a4architect.com using the below email.
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.
