The Government of Kenya has a housing scheme in which it constructs apartments and massionettes for sale to civil servants.
The interest is 5 percentage per annum compared to banks interest of about 14 percent.
To the experts in this forum does such a deal offer real value for money?
A case in point is a three bedroom apartment costing Sh4. 8m. Contrast that with taking a commercial loan and constructing a house to your preferences. What would you consider as the advantages and disadvantages of such?
I would also appreciate any other information you have on the progress of the scheme.
You asked a question that you already had an answer too… No wonder response rate here is at zero.
You have already said it, it is CHEAPER than getting a bank loan/mortage for purchasing a house/apartment.
First, the AFH scheme isn’t for civil servants only and secondly, that schedule you’ve shared here is not the current rate, the costs have gone up. For example, the Pangani housing for a duplex is at 10M now while it was 5-6 M when they were starting.
The down side of these apartments the government is building is that, they are too basic, you will need to do some fixtures and fittings to make your unit more attractive especially if you will be renting it out or converting to an AirBnB. Also, management of these apartments / estates is wanting, National Housing Corporation who are the sole custodians need to pull up on the maintenance and thirdly, the sectional titles are taking too long to be released.
Thanks for the incisive response.