I require and investment guide. I’m situated in Malindi, Kilify county. I have a property beside a busy slighty hilly highway(busy for cars, walk-in crowd is less) where i could construct 4 small shops of 15ft by 20ft. Investment is of aprox 2.5M, rental might be 15k or 20k per shop which is 60k or 80k.
I’m getting an interest free loan for the 2.5M. And monthly repayment term might be 40k or 50k.
Now the question isss, Is this Worth the investment??
Please note, i don’t have any other side income to pay the loan. So if shops are not rented then I’ll be stranded.
Is this worth the risk?
Uko Malindi area gani? Kisumu Ndogo ama Majengo?
That rent is high unless uko inside the town.
Be careful, if you have no money to service the loan, the banks may auction you.
The actual calculations is p.a when doing returns on investment…that is 60k X 12= 720k that’s translate to nearly 30% returns accommodating expenses…that’s not a feasible realistic return. Some things are not adding up 2.5m for 4 shops??? And a rental of 15k p.m. Niko doubtful on this . Who ever gave out 2.5m loan without back ground check on how you will pay is the biggest fool ever.
Kisumu ndogo, opposite bp petrol station. Rent is okay. Infact i feel 15k iko low sana. Other shops near that area is charging 20k lakini shop size ya container 20ft
Actually the shops are cheap,only four walls. The Slab is expensive cause in future i will create upper unit, thats why.
In Malindi rentals are very low thats why property investment is very low, only people with extra money are investing
If you are thinking that if i wont pay the loan the i will lose the property?? One thing I’m very sure is that in loan i won’t be harrased nor anything will be taken,thats why I’m doing this investment.
And bdw… you seem to be a fool as well. They are some good people who gives out loan to help. Its all about your reputation. I have that reputation. I have people who can give me loan of 2M. You won’t understand. You haven’t reached that level or reputation.
If you are going to do a slab for future units then ujue 2.5m ni kidogo. Cost of coral building blocks is also very high in Malindi. But get a materials and labor estimate done first.
To get the money you want for rent the shops have to have good finishes and amenities - they don’t come cheap.