Category: A4architect

Invest in 3 options.
1.Contribution of KES 590,000 with monthly income of KES 4,800
2.Contribution of KES 780,000 with monthly income of KES 6,300
3.Contribution of KES 860,000 with monthly income of KES 7,000.
12 Bedsitter units in a 1/8th acre plot.
Each Bedsitter unit represents 1 share in a Limited Liability Company.
Click here for more on the costs and profits breakdown info.

Stand to gain from the 20% annual capital gains from property in Kenya.
How it Works.

Click here for more info on how the investment plan works out.
How the shares are devided.
Example at below link using the KES 780,000 option.

Click here for more info on how the 12 shares per 1/8th plot are subdivided.
Payment Procedures.

Click here for more info on the payment and decision making procedures.
For personalized own homes, click here to view ideas on designs and cost estimates.

Smart Glass walling for Buildings.

Glass as a walling element increases the aesthetic appeal for a building, be it residential , office or institutional usage.

Thickness of glass wall.

For large surfaces, this will require a thicker glass pane.
For smaller surfaces with closer glass frames, a thinner glass panel can be used.

Glass safety.

Lamination.

Laminated glass has a thin layer of film on one side. This layer prevents glass from shatering in case of breakage eg car windscreens.

Lamination also improves security in that it becomes hard to break into a laminated glass wall.

Smart glass.

Smart glass consists of 2 layers of glass with liquid crystal in between. When the button is switched on, current flows within the liquid crystal, forcing the crystals to align to the current, making it easy for light to pass through. When the button is off, the crystals get randomly scattered and arranged, creating an opaque glass wall.

See smart glass picture here

The liquid crystal can come in various colors and patterns.
Price ranges from usd 500 to 800 per m2 FOB China.

Smart foil.

Smart foil has the same properties as smart glass. The foil is stuck on the glass . Using an on and off button, someone can change the glass from clear to opaque.

The price is same as for smart glass, usd 500 to usd 800 per m2 FOB China.
Advantage is that it comes on rolls and can easily be stuck on existing glass.

This ability to control clear/opaque abilities come in handy for the user to control their indoor privacy levels depending on the activities .

See picture here

See video here

[youtube=http://www.youtube.com/watch?v=oPTEGF6O_2U&w=560&h=315]

Indoor Temperature regulation.

Smart glass can be preset such that during the day, sunlight is allowed in until a certain preset temperature is reached.

At this temperature, the glass becomes opaque.

The glass then disallows heat to escape outside the room, keeping the indoors warm.
Using combination film on glass, light and heat is allowed in and heat is prevented from escaping from the room.

Francis Gichuhi Kamau, Architect.
0721410684
info@a4architect.com

Concrete formwork scaffolding in Kenya.

Form-work and scaffolding in Kenya has rapidly evolved over the last 5 to 10 years from timber to steel.

Previously, wooden trappers were used for the slab bottom. Softwood timber was used for the beams and columns and timber poles used for the scaffolding. These are still being used for smaller projects.

For larger projects, steel panel and steel scaffolding have come into play.

High Demand in Nairobi.

The market is still ripe for specialized form-work and scaffolding contractors to come in. Currently, contractors have to make do with small time form-work and scaffolding businesses which hire these out.
Compared to South Africa, which has many large scale specialized form-work suppliers, there is a huge demand for this business currently in Nairobi, Kenya.

New architectural designs.

New architectural designs are now coming in very interesting shapes. To achieve this, the architects need to ensure that the concrete form-work is done by specialized form-work suppliers.

Zaha Hadid.

My favorite Architect, Zaha Hadid, who is Iraqi, is re-known for her curvilinear designs.

MAXXI: Museum of XXI Century Arts

Several of her projects have been formworked and scaffolded by Peri Engineering.

http://archrecord.construction.com/projects/portfolio/2010/10/maxxi.asp

New Opportunity for Kenyan Entrepreneurs.

Entrepreneurs should take this opportunity and become the pioneers of form-work and scaffolding business in Kenya. Same to specialized roof truss works which also don’t have players here in Kenya.

As Kenyan construction industry grows into international level, the demand for these suppliers will eventually rise.
Economies such as South Africa with active form-work and scaffolding suppliers will come in as local entrepreneurs learn the ropes to offer competition.

Ready Mix concrete example.

A few years ago, concrete was mostly mixed on site.
Currently, in Nairobi, pre mix concrete business has now become huge.
Previously, only a handful of contractors had the pre mix concrete lorries.
Currently, entrepreneurs have now specialized in supplying pre mix concrete as a full time business.

Its my hope that this article will inspire an entrepreneurial mind into this business so as to better the Kenyan construction industry and all Kenyans in general.

Francis Gichuhi Kamau, Architect.

Best way to invest in Kenya’s real estate with kes 1m and below.

For a budget of kes 1m and below,the real estate investment possible is most likely located 40km and above from Nairobi CBD and over 1km from main tarmac road. Such areas include Kantafu, Isinya, Kajiado and deep within Juja.

5 to 10 years before development.

These areas will take over 5 to 10 years for development to encroach such that the areas can return good rents for construction.

Land price as advertised for sale in Kantafu, Isinya.

http://south-b.olx.co.ke/plots-for-sale-iid-528383204

A budget of kes 1m will get you a 1/4 to a 1/2 acre plot in Isinya depending on how close the plot is to the tarmac.

A budget of kes 1m will also get you a 1/4 acre or 1/2 acre plot depending on how close the land is to the main tarmac road.

http://pipeline.olx.co.ke/50-x-100-plots-for-sale-in-kantafu-near-koma-rock-hill-iid-519192958

50 km from Nairobi CBD.

Both Kantafu and Isinya are 50km from Nairobi CBD.
This means that it’s not possible to construct rental properties here.
As we speak, there are no rental properties in these areas.

No return on kes 1m investment.

This means that the kes 1m used to buy the land will lie idle for the next 5 to 10 years as we wait for these areas to grow such that its viable to develop rentals.

For a prudent investor, its wiser to invest in real estate where returns are possible within 6 months of your investment.

Location, Location, Location.

The cliché saying goes, there are 3 important factors to consider when investing in real estate.
1.location
2.location
3.location.

Kes 1m invested in real estate near Nairobi CBD.

Land near Nairobi CBD, where its possible to get good rental income, is quite expensive. These areas include Kitengela,Rongai, Syokimau, Kahawa and Kiambu.

A good plot will cost kes 2m. This is over the kes 1m budget.

Solution on how best to invest.

To circumvent this problem, a4architect.com has come up with a unique method whereby several like-minded Kenyans can meet and discuss on how to pool resources and buy the expensive plot and share the rental income.
See here for details.
a4architect.com/discuss/

Since location is the most important factor in real estate, several people can share the plot both horizontally and vertically. The plot has another 5 to 6 multiplicity if constructed vertically.

New topics by Investors on the forum.

A minimum of 12 people can meet in the forum , set up a discussion topic such as this
http://a4architect.com/discus/topic/joint-investment/

They can then decide which plot to buy and share.

Immediate Returns.

With this option, the kes 1m budget will immediately begin to return its investment at an average rate of 10% per annum. In 10 years, all the investment money will have been recouped.

On the contrary, the person who invested in land in Isinya and Kantafu will still not have began returning their investment after the 10 years.

Francis Gichuhi Kamau, Architect.
0721410684

Best way to invest in Kenya’s real estate with kes 1m and below.

For a budget of kes 1m and below,the real estate investment possible is most likely located 40km and above from Nairobi CBD and over 1km from main tarmac road. Such areas include Kantafu, Isinya, Kajiado and deep within Juja.

5 to 10 years before development.

These areas will take over 5 to 10 years for development to encroach such that the areas can return good rents for construction.

Land price as advertised for sale in Kantafu, Isinya.

http://south-b.olx.co.ke/plots-for-sale-iid-528383204

A budget of kes 1m will get you a 1/4 to a 1/2 acre plot in Isinya depending on how close the plot is to the tarmac.

A budget of kes 1m will also get you a 1/4 acre or 1/2 acre plot depending on how close the land is to the main tarmac road.

http://pipeline.olx.co.ke/50-x-100-plots-for-sale-in-kantafu-near-koma-rock-hill-iid-519192958

50 km from Nairobi CBD.

Both Kantafu and Isinya are 50km from Nairobi CBD.
This means that it’s not possible to construct rental properties here.
As we speak, there are no rental properties in these areas.

No return on kes 1m investment.

This means that the kes 1m used to buy the land will lie idle for the next 5 to 10 years as we wait for these areas to grow such that its viable to develop rentals.

For a prudent investor, its wiser to invest in real estate where returns are possible within 6 months of your investment.

Location, Location, Location.

The cliché saying goes, there are 3 important factors to consider when investing in real estate.
1.location
2.location
3.location.

Kes 1m invested in real estate near Nairobi CBD.

Land near Nairobi CBD, where its possible to get good rental income, is quite expensive. These areas include Kitengela,Rongai, Syokimau, Kahawa and Kiambu.

A good plot will cost kes 2m. This is over the kes 1m budget.

Solution on how best to invest.

To circumvent this problem, a4architect.com has come up with a unique method whereby several like-minded Kenyans can meet and discuss on how to pool resources and buy the expensive plot and share the rental income.
See here for details.
a4architect.com/discuss/

Since location is the most important factor in real estate, several people can share the plot both horizontally and vertically. The plot has another 5 to 6 multiplicity if constructed vertically.

New topics by Investors on the forum.

A minimum of 12 people can meet in the forum , set up a discussion topic such as this
http://a4architect.com/discus/topic/joint-investment/

They can then decide which plot to buy and share.

Immediate Returns.

With this option, the kes 1m budget will immediately begin to return its investment at an average rate of 10% per annum. In 10 years, all the investment money will have been recouped.

On the contrary, the person who invested in land in Isinya and Kantafu will still not have began returning their investment after the 10 years.

Francis Gichuhi Kamau, Architect.
0721410684

Build , Buy or Rent. How to decide for Residential projects in Nairobi.

To build, buy or rent a house in Nairobi requires one to make a few wise calculations .

Example. Syokimau.

Let’s take an example of A house in Syokimau, Kitengela, Rongai or Kiambu road .
Let’s assume a budget of kes 7m available in cash or mortgage from a bank.

Buy or rent.

Worldwide, the buy to rent ratio is calculated by dividing the buying price to the yearly rent.

http://www.zillowblog.com/research/2010/09/21/a-better-price-rent-ratio/

Ratio of 1 to 15 favors the buyer. Ratio of 15 and above favors the renter.
In layman’s language, this simply means that if it takes over 15 years for return on investment through rent, then its better to rent and vice versa.

BuruBuru.

A 3 bedroomed house costs 7.5m.
The same rents for kes 30k per month. This represents a buy to rent ratio of 20.
This means its better to rent than to buy for this area.

7m house in Syokimau.

Current 7m house sale adverts in Syokimau.

http://kimathi.olx.co.ke/mombasa-road-tofina-muthama-apartments-iid-525787830

http://south-c.olx.co.ke/3br-brand-new-apartments-near-syokimau-commuter-train-station-iid-513769754

http://south-c.olx.co.ke/3br-exquisite-apartments-overlooking-nairobi-national-park-iid-513767982

http://south-c.olx.co.ke/near-nation-printers-3br-upcoming-apartments-on-nbi-msa-rd-iid-510753659

From the above adverts, kes 7m will get you a 3 bedroomed apartment in Syokimau with a plinth area of between 110 to 150m2.

Current kes 40k house rent adverts in Syokimau.

http://south-c.olx.co.ke/3br-brand-new-apartments-iid-513773037

http://westlands.olx.co.ke/3b-room-aprtment-mombasa-rd-iid-505244526

Lets assume a rent of kes 40k per month.

The buy to rent ratio will be 14.5.

This is less than 15 therefore it’s a good buy. Its more prudent to buy than to rent.

Better to Buy than Rent in Syokimau.

With this, we can safely assume that with kes 7m budget for Syokimau, Rongai and Kitengela areas, its better to buy than rent.

Build vs. buy.

Lets now compare building versus buying readymade houses worth kes 7m.

In Syokimau, the 7m house is an apartment of an average of 130m2 in plinth area.

Cost of construction.

Let’s assume middle cost finishes at kes 30,000 per m2.
The Cost of building a similar sized 130m2 house is kes 30,000 x 130m2 =kes 3.9m.
The cost of a 1/8th acre of land near the road in Syokimau is kes 2m.
See land prices here

This brings the total to kes 3.9m + kes 2m =kes 5.9m.

This is is a 1.1m savings realized, a whopping 19% of savings.

This 1.1m can go into developing rental units within the same 1.8th acre.

Capital Gains.

By buying the 1/8th acre, you stand to gain from the appreciating land and property values. Currently, land appreciates at between 20 to 30% annually in Syokimau.

The apartment buyer does not have this luxury since he doesn’t own the title to the land.

Room for future expansion.

The plot buyer will have more room to develop rental units or just expand their own residence.
The apartment buyer doesn’t have this luxury since under sectional title, you can’t ammend or increase your plinth area.

Conclusion.

Its more prudent to build your own house around Nairobi for a budget of kes 7m.

www.a4architect.com can offer advisory that will enable you take the baby steps into sourcing the land, getting architectural designs and hiring a contractor to build your house.

Francis Gichuhi Kamau, Architect.
0721410684

Kenya taxation. Learning from Denmark.

According to Wikipedia, Kenya is among few Countries in the world in current discussions to introduce Land Value taxation.

http://en.wikipedia.org/wiki/Land_value_tax#Kenya

The Uhuru Kenyatta Government, if it successfully introduces this taxation system, will be acknowledged for generations to come for helping resolve Kenyan poverty.

Denmark tax regime.

In Denmark, in 1957, a small Georgist party that advocated for Land Value taxation won a few seats and power sharing within the ruling coalition.
One year later, inflation fell from 5 to 1% as investors stopped hoarding on land.
Bank interest rates fell by 1.5%.
Unemployment was drastically reduced.

Denmark vs Kenya economy comparison.

Denmark has a population of 5.6 m compared to Kenya’s 40m.
Only 13.6% of Danes live below poverty line compared to Kenya’s 50%.
Denmark’s GDP is 10 times larger than Kenya’s, at 336 B USD vs Kenya’s 33 B USD.

Denmark’s economy mostly relies on its human resource to enable this huge GDP.It has very few mineral resources.

Similarly, Kenya’s economy also relies on its human resource to enable its GDP and also has few natural resources.

Human resource.

In Denmark, use of Land Value taxation has helped its human resource to access the most important factor of production, Land.
In Kenya, poor land laws have locked out this all important factor of production, Land, from the human resource.
By the Uhuru Government supporting and implementing such a taxation system as seen in Denmark, Kenya will easily move forward in terms of productivity and within a few years, get to the level of Denmark.

IQ.

Scientists have proven that all humanity generally have the same IQ, therefore, whatever the Danes can achieve using their human resources, Kenya can also,. All Kenya needs to do is learn from the best, tweak a little bit here and there and all will be well. There is no need to reinvent the wheel all over again.

Francis Gichuhi Kamau, Architect.
0721410684