GREENVILLE ESTATE-SYOKIMAU. BUY AT KES 1,900,000 PAY BACK Mortgage at KES 15,000 per month AND EARN RENT at KES 29,500 per month when fully developed

GREENVILLE ESTATE-SYOKIMAU

GREENVILLE ESTATE-SYOKIMAU. BUY AT KES 1,450,000 PAY BACK Mortgage at KES 15,000 per month AND EARN RENT at KES 29,500 per month when fully developed.

GREENVILLE Estate is located at Syokimau, 10 to 15 minutes drive from Nairobi CBD.

The estate comprises of residential unts each with direct access to the ground floor. The individual unit comprises of living room ,kitchen, toilet cum bathroom and bedroom.

An extra bedspace has also been set aside to be used incase there are guests who need to be accomodated. This bedspace is next to the living room and is separated from the living room using a curtain.When the bedspace is no longer in use, all the house owners need to do is to open the curtains and the space merges with the living room space.

The housing unit is being sold as a ground floor only with a provision for 1st floor extension. The sale includes Local Authority-approved architectural and structural drawings for the 1st floor extension.

Once a buyer purchases the ground floor unit, he has an option to extend the building by one floor upwards as per the approved drawings to create either of the below:

[a] 2 No. extra ensuite bedrooms One 1-bedroomed unit [rental income of KES 12,500 per month] [c] 2 No. Bedsitters [rental income of KES 17,000 per month]

Case Study

Currently, estates such as Buru Buru in Nairobi are already coming up with such extensions to the original houses .This shows that as time moves on, the space requirements for the original occupants changes from the time a family gets children to the time the children move out of the house. This requires architectural designs that take care of this dynamic change in space needs. Greenville Estate provides for this change in that the Ground floor unit has one bedroom and a provision for an extra bedspace if the population increases.

Greenville estate also provides for a further 1st floor extension to create 2 more bedrooms or rental units. This can change as the family unit increases or decreases or the family unit requires to make rental income from the house.

Return On Investment

The sale price is set at KES 1,900,000 for the Ground floor level unit. This can be repaid in monthly mortgage repayments of around KES 15,000 on a competitive mortgage interest rate.

Return On Investment

Scenario 1.

Buyer buys ground floor unit for owner-occupation.

In this scenario, the buyer will save on the rent that he pays in that the same rent will go to offsetting his loan faclity of purchase of the house. The average Nairobi surburb rent for a 2 bedroomed house is KES 15,000 per month. This is the same ammount of money that can be used to offset a loan facility for the ground floor unit which has one bedroom and one extra bedspace. This will provide a good return since the owner will eventually fully pay the mortgage facility and free themselves from rent payment eventually.

If buyer decides to develop the upstairs 2 No. Bedrooms later, he/she will derive great benefits and prestige since the land will have appreciated in value and hence will be living in a highly valued residence which they can use as collateral in any bank to gain equity.

Return On Investment

Scenario 2.

Buyer buys Ground floor unit and Develops First floor to 2 No. Bedsitters for Rent.

In this scenario, the Buyer buys the Ground floor unit at KES 1,450,000 and proceeds to add more money later on as his finances improve to construct the upstairs rooms.

As time goes by, the Buyer's financial situation is deemed to improve such that he/she can now afford to construct the upper floor to include 2 No.Bedsitters for rent.

The Buyer will be provided with approved architectual and structural drawings to guide through the upstairs construction phase.

The averge rent for 1 bedroomed such as this is KES 12,500 per month.

The average Rent for the Bedsitters will be : the larger one at KES 9,000 per month and the smaller one at aKES 8,000 per month.

The total rental income for all units is =12,500 + 9,000 + 8,000= KES 29,500 per month.

This totals to KES 354,000 per year and should recoup the initial cost within 7-9 years bearing in mind that rental income increases over time and by the time the 7-9 years are over, rental income could have doubled.

20% yearly rental increase

5 years ago,rent was an average of KES 7,500 for a 2 bedroomed house in a lower middle class area such as Umoja ,Kasarani ,Athi River or Kitengela. Currently, the same rent has increased to KES 15,000 per month . This is roughly double within a period of 5 years hence a 20% increase per year. If you factor a 20 % increase in rent per year, the ammount will be repaid back within an average of less than 10 years.

This makes a very good Return On Investment since within less than 10 years, the buyer will be able to fully own the property and enjoy a monthly rent that starts at around KES 29,500 and increases every year by an average of 20%.

Francis Gichuhi Kamau B.Arch. U.o.N M.A.A.K[A] Registered Architect.

www.a4architect.com

+254721410684

GREENVILLE ESTATE-SYOKIMAU. BUY AT KES 1,900,000 PAY BACK Mortgage at KES 15,000 per month AND EARN RENT at KES 29,500 per month when fully developed

By: Frank Gichuhi

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