3 BEDROOM STARTER HOME

 

3Bedroom starter Home

COST: KSHS- 2,640,000/= with EPS 2,300,000/= with Stone.

CONSTRUCTION PERIOD: 45 DAYS with EPS, & 90 DAYS with Stones

FEATURES:

-Gross Built Up Area- 76 Square Meters

-3 Bedrooms. All Bedrooms Share one Bathroom

-Kitchenette and Lounge

-Cost is inclusive of cost of house designs.

Click here> Floor Plan for the House

SPECIFICATIONS:

The cost is based on the following finish specifications:-

WALLING FINISHES

Internally: – skimmed walls with three coats of first quality matt finish and gloss to doors and windows.
Externally:- skimmed walls with three coats of first quality gloss finish for paneled walls and keyed wall surfaces with a 900mm skirting, plastered and painted with a gloss finish for the masonry walling.
Ceiling finish:-P.V.C ceiling based on the client’s taste of colors
Roofing:
Gauge 30, IT5 sheets on 4×2 trusses and 250x25mm painted fascia board.

Doors:
Solid T-door (cypress) with a 3lever lock for the external doors and veneered semi solid flush doors with 2 lever locks internally.

Windows:
Standard casement windows with 3mm c.s.g and 4mm o.b.s for the wash rooms

Floor and walls:
300×300 x8mm ceramic tiles to floors and 200x250x6mm ceramic tiles to walls.

PLUMBING

Water closet and wash hand basin to be “white India” in make, and single bowl double drainer sink for kitchen.

ELECTRICAL FINISHES

Bedrooms: Ceiling rose (one per room)
Lounge: 4 ft fluorescent ceiling fitting and two wall brackets
Kitchen: 4ft. fluorescent fitting (one per each)
Corridor: 4 ft. fluorescent fitting.
Twin socket outlets( one per bed room, two for the lounge and two for the kitchen)
Security lighting: two security lights (back and front)
EXCLUSIONS

Rain water goods (gutters) are not included in our quotes
Sewage disposal not incorporated
All external/civil works not incorporated.

Source

www.fediltyhousing.co.ke

Factors to look at when investing in real estate: location and potential returns

Alternative investments like real estate, private equity and structured financial solutions have outperformed traditional investments such as stock and bonds generating returns of, on average, more tha
n 20% per annum over the last five years. Among this, real estate has been the best performer recording returns of on average 25% per annum over the five-year period.

An analysis on performance of portfolios by Cytonn shows that returns on those with real estate exposure in 2015 were 6.7% higher than the returns on portfolios without real estate exposure. Real estate is thus a good investment both for profits and for diversification of an investor’s portfolio to minimise losses.

Despite the high returns, investment in real estate is not foolproof and one can just as easily make losses, especially if the product delivered does not receive expected uptake or occupancy. That is why it is important to explore two key factors that an investor should look at before making an investment.

Location is what will determine how fast a product will move in terms of both renting and selling. While returns, which is mainly touching on how to gauge the level of expected returns from a research perspective, will then be used to guide the investment decision. Based on these factors, you can then invest in real estate sharply, conveniently and earn the highest possible returns from this asset class.

Location – The importance and effect of location on the potential returns from a real estate investment can never be overstated. Being a physical asset, the potential clients must see, test and gauge if the property they are eying meets their requirements before buying or renting. Before selecting a property to develop, a potential investor should critique the location based on the following two key issues:

Infrastructural development – How is the infrastructure around the place, is the site close to a tarmac road, and are there alternative means of transportation? Is there electricity on site, sewer connection? Does the government supply water? If these services are available, then a site is ideal as it will have lower construction costs as the developer or investor will not have to provide them. If absent any plans in the pipeline to develop them and the timelines for the same if in tandem with the timelines the developer hopes to go to market may suffice. Should there be no plans, then the development may be futuristic and the investor may have to hold to the land for some time. Alternatively, the investor may provide the services but often such undertakings are expensive and may drive the price of the property to levels above market making selling hard.

Security – The security of a place often plays a big factor when buyers decide on whether to invest in a property. An ideal location with ease of access and good amenities may not achieve the sales expected if in a place with poor security. Hence before purchasing land, a real estate investor ought to conduct a background check on the security of the place to avoid being stuck with a product due to insecurity and hence make losses in the high performing real estate sector

Returns – While real estate generally earns high returns, it is not often the case and poor choice of investment in the sector without prior research may lead to making losses. Thus, before investing in real estate, an investor ought to gauge the level of expected returns on the product to establish viability. From a market research perspective, an investor can gauge the potential returns of a real estate investment using the following metrics.

Rental yields – This refers to how much the property pays back itself on an annual basis. It is calculated by dividing the annual rental income by the price of the property. A yield of say 5% means the property earns back 5% of its value on an annual basis and will hence take 20 years to recover initial investment, if the property is held as an income generating asset and not sold. A 10% yield means a property will take ten years to pay itself back. For rental yield for example, the higher the yield the better.

Capital appreciation – This refers to the rate at which the property appreciates in value. This can be due to demand or appreciation of land on which the property stands. Capital appreciation is calculated by dividing the current price by the price at a given base period then compounding to get the annual growth rate. It can be used to estimate future prices for modelling and to estimate the selling price at a future time point.

Total Return – This is the total return an investor is likely to get on a real estate investment. It is calculated by summing up the rental yield and the capital appreciation such that on sale of a property, the investor will gain from the increase in value of the property as well as the rental income earned. The increase in the value of the underlying asset is the key differentiating factor between real estate as an asset class and other asset classes.

Occupancy – Refers to how much of a development has been absorbed by the market through renting. Calculated as a percentage, it is obtained by dividing the number of units occupied by the total number of units available. A high occupancy leads to higher returns and low occupancy significantly reduces the return potential of a real estate investment.

Uptake – Refers to how much of a development has been absorbed by the market through sales. This is calculated as the number of units sold divided by the number of units available and is expressed as a percentage. Occupancy and uptake indicate the demand for the real estate development. High rates of the two indicate there is demand and low rates indicate that the market may be oversupplied or that there is no demand.

To get the above metrics, a potential investor has to visit comparable properties in the chosen location and collect data on the same, compute the metrics then make decisions off the findings. While the above does not guarantee the success of a project, it goes a long way in minimising the risk of losses to an investor and is hence worth it.

From the above, sharp real estate investment is very tedious. One has to first look for the site, gauge its attractiveness based on infrastructure, access, amenities, and security and if it checks the box, carry out a research to estimate potential returns. After that the site acquisition begins and it can be as messy as it is tedious involving sale agreements, due diligence documentation to name but a few then get approvals before beginning the development. It is hence hard to do this by oneself unless it’s a full-time job.

To invest sharply, conveniently and stress-free in real estate sector, an investor may also consider three things. Firstly, get a partner. Do not go at it alone get professional help to guide in site acquisition, market research, project, and construction management to make the process faster and quicker.

Secondly, buy real estate projects off plan provided all the above factors are clearly provided and due process has been followed. This enables you to enjoy returns without working for it big time.

Thirdly, consider real estate backed notes and listed property through Real Estate Investment Trusts (REITs). This enables one to enjoy liquidity similar to that of traditional investments such as stocks and earn the high returns in real estate without the hassle of dealing with property.

It is thus possible to structure investment in real estate to suit your needs and still enjoy the high returns of the asset class.

BY ELIZABETH NKUKUU.                                                                                                        

 Writer is Chief Investment Officer and Head of Cytonn Real Estate.

Continue reading “Factors to look at when investing in real estate: location and potential returns” →

A perfect 3 Bedroom House plan for Kshs.12,000.

Buy this dream house plan

Building your home at a fraction of the cost

Building your own house is never a cheap affair. But there are aspects you could consider to save on cost. HOME and AWAY tells you how

1. Foundation By Harold Ayodo

The loftier the building the deeper the foundation must be. The importance of a building’s foundation cannot be over-emphasised. Experts say the ground is not totally solid and a house set up without a strong foundation is more likely to either crack or cave in over time following natural forces. Foundations perform many functions such as to bear the load of the building, anchor against natural forces like earthquakes and isolation from ground moisture. Industry professionals concur that the type of soil is important as it determines costs for a typical slab with hard-core infilling.

Construction experts have that the cost of a foundation is between 15 and 20 per cent of the total cost or between Sh4,500 — Sh7,000 per square metre of the floor area Architectural Association of Kenya (AAK) Architects’ Chapter chairman Musembi Mumo says it is cheaper to lay a foundation on red soil compared to black cotton soil. “Construction on black cotton soil is costlier as all soil must be excavated and carted away,” Mumo says Mumo says a fairly level site would be cheaper to construct on than a sloping site that would require stepped foundations and earth works of cutting and filling. Quantity surveyor and construction project manager Tom Oketch says red coffee soil or murram is cheaper following the simple foundation design associated with them.

The type and quantity of materials used to construct foundations on the cheap depend on depth of the trenches. “The deeper the trench the more stones would be used…Depth is also determined by the nature of the subsoil,” Oketch says, adding that the design of the house would also affect the quantities of construction materials used – keep the design simple. According to Mumo, a good foundation is built with masonry walling set on a 60cm wide by 20cm deep with construction materials mixed on a ration of 1:2:4. “The ration means a mixture that entails a bag of cement, two wheel burrows of sand and four wheel burrows of kokoto (ballast),” Mumo says. Mumo, however, says that steel reinforcement bars may be necessary depending on the type of soil. Oketch explains that in cases where concrete needs further strengthening, reinforcement bars and formwork are introduced as additional items which would increase the cost. “Foundation footings must be on rock and you may have to dig up to eight feet to the rock,” Mumo says. Oketch explains that a simple rectangular foundation (floor) plan would be cheaper than an irregular or circular design

. It is important to hire a competent mason to be in charge as the outcome of the entire building depends on setting the foundation. “Three masons and six labourers are required for a cost effective and good job to be completed within four weeks — depending on sub soil conditions,” Oketch says. Mumo says that a lean workforce of utmost ten fundis can complete the work within a month but says a larger workforce will be needed on the day of koroga (mixing). Other registered professional required before and during construction of the foundation are a land surveyor, architect and a quantity surveyor. “Structural, mechanical and electrical engineering would also be helpful at low cost to add considerable value to doing it right from the start,” Mumo says. He explains that seven days should elapse after a concrete floor bed has been laid before erecting the walls. According to Mumo, the slab should be watered daily in the evening over seven days for proper stability. Oketch says that bulk purchases of construction materials is another stride towards saving costs following trade discounts and reduction of transport costs. “It is easier to determine quantities of materials needed and plan for bulk purchases,” he says. The quantity surveyor and construction project manager warn that theft on construction site is also common and, therefore, enhanced security would consequently cut costs vastly.

2. Interior finishing By Wangeci Kanyeki.

It is a well-known fact that it is one thing to finish the structure of your house and an entirely different budget to finish the interiors. How do you outfit your interiors to have a stylish quality house for as little money as possible? The trick is to get creative and think outside the box so that you have attractive living space without breaking the bank. Below are some money saving décor ideas for your floor and ceiling materials that are locally available and easy to execute. Keep an idea notebook where you can collect your desired décor ideas, paint colours and fabric samples that fit in with the style of the house.

Flooring

If hardwood is pricey for your wallet consider using laminated flooring. This is a modern versatile, attractive and low maintenance; synthetic flooring that imitates natural wood flooring. Though it looks like wood there is actually no solid wood used in its construction, which makes it more environmentally friendly as it uses less timber in its construction. In comparison to hardwood floorboards, laminated floor boards are made from water resistant layers of high density fibre boards fused together by a lamination process and topped with a photographic image of natural wood flooring. In comparison to fixing hardwood flooring, laminated floorboards are quicker to install and require less expertise skill, which tremendously cuts down on labour costs. They are fixed using tongue and groove planks, which are clicked together without using glue, or nails and can last up to 20 years if well maintained. Constraints of laminated floorboards include fading where there is exposure to sunlight as well at the difficulty to repair scratches.They are also difficult to redo, refinish and repair as the production of models, colours and brands can become obsolete so the entire floor area would have to be replaced in case of damage. Look for various open market sources and showrooms in Kenya, in Nairobi there are various suppliers stretching from Mombasa Road’s Industrial area through Gikomba Market all the way to Ngong’ Road.

Non-slip ceramic or stone tiles should be used for wet areas such as kitchens and bathroom. The cost and durability vary depending on the thickness and size of the tile. The tile itself is easy to maintain, but the grout needed to hold it together tends to discolour with age and is difficult to keep clean.

Ceiling

Ceilings are not only decorative but serve to provide insulation from heat loss, sound proof to reduce noise levels and hide unsightly building services such as pipes. Below are some entry-level ceilings. -Bamboo or match stick blinds Use inexpensive matchstick or bamboo blinds to create some fun ceiling panels, which are easily, installed using a staple gun or strong adhesive. To hide unsightly pipes, swag or drape them and hold the drapery in place with reeds or an attractive rope.

Faux Wood Panelling

Buy sheets of ceiling boards made from wood and its by products such as pre-primed wood panelling. Pre drill holes through the sheets into the ceiling and screw in place with wood screws. You can paint these out in any colour but white will light up even the smallest rooms. These wood panels are also a fun way to add an architectural detail or interest. Other more expensive options include PVC ceiling boards and the much-coveted gypsum. Heavy Grade Fabric Finally, this is a great option for anyone who will be installing their ceiling alone. You can see heavy or thicker fabric, like upholstery fabric or even canvas to cover your ceiling. Work this fabric in the same method described in the blinds section. Use wood dowels on the ends of the fabric. Roll to cover the ends, then staple onto the ceiling in swags or flat panels. Use a thick sturdy fabric so it looks substantial on the ceiling and stick with solid colours.

3. Roofing & Walls By Allan Olingo

One of the most expensive aspects of building a new home is the cost of roofing. In most cases, the roofing cost is based on the cost of roofing materials, roof steepness, and the labour cost. Other determinants include the roofing style, the durability and availability of roofing materials to use on your house.

Stephen Kavira, a contractor with Erdemann, says often, roofing is measured and estimated in squares. “A square of roofing is the amount of roofing material required to cover 10 square metres (3.3 X 3.3). The cost will always depend on how many square metres you want and it doesn’t get cheaper especially when you want your house to have pitches and dormers,” says Kavira. Kavira, however, says that to lower the roofing costs, one needs to reduce the pitch and eliminate the dormers.

“It is also important to work with either your fundi or contractor on the roofing estimates and by using the architectural design on the roofing type, you will be able to determine which concept will work within your budgets,” he says. It is also advisable that even after having your roofing contractor do this estimate, you need to seek a third opinion or do your own calculations to see how they compare. Roofing installation labour increases dramatically as the steepness of the roof increases. The steepness of the roof can also be used to control cost. The more steep the roof is, the more the surface area and hence the more the cost. Roofing contractors charge according to the shingle weight and the roof pitch because the steeper the pitch and the heavier the shingle, the harder their job. Currently, the thinnest grade in the market is gauge 32, which costs about Sh270 per square meter. Gauge 30 costs about Sh310 per square metre and gauge 28 pre-painted costs approximately Sh700 per square meter. The concrete roofing tiles cost around Sh600 per square meter. “When budgeting for your roof, you should consider not only the upfront cost of materials and labour but also the entire life-cycle cost,” Kavira advises. Walls According to Felix Anyango, a quantity surveyor at Erdemann one can save on costs by using machine cut stones.

Source

Home and Away

www.standard.co.ke