overbuilding

In 2010, Mr Paul Ogembo, a senior civil servant, decided use all his life savings to build executive rental apartments in Gwa-Kairu in Ruiru Town. Topping up the money with a loan running into millions shillings from his bank, Mr Ogembo was sure that the rental income from letting the apartments would serve as the perfect retirement plan. However, four years after he completed construction, only half of the houses in the building are occupied. “When I started letting out the apartments in 2012, I was charging Sh15,000 rent for a bedsitter, and Sh24,000 and Sh30,000 for one- and two-bedroom houses respectively,” he recounts. “People would come and look around the apartments, but would go for good after I told them what I was charging. It became apparent that those looking for houses in the area could not afford the rent.” Ironically, what had served as inspiration for Mr Ogembo is what turned out to be his bane. “I had looked around the area and noticed that it lacked premium apartments which could house the upper
middle-class. Most of the buildings here are low-rent bedsitters meant to serve university students from the nearby institutions. By building high-class apartments, I thought I was filling a gap in the area’s housing sector,” he told DN2. Even though he has since reduced the rents to almost half the initial prices, he still has trouble getting tenants.
To drive the point home, Mr Matumbi gives the example of two home people who build houses in different locations. The first individual buys a plot at Sh1 million in Mwihoko, off Githurai and builds a palatial, 10-bedroom mansion at a cost of Sh30 million. The second one buys a smaller plot
in Kileleshwa for Sh15 million and puts up a three-bedroom house at a cost of about Sh5 million. After 10 years, when both homeowners are looking to sell their homes, the individual with the palatial home will be shocked to find that his mansion has hardly appreciated in value, and will be lucky to find a buyer to give him Sh50 million. Meanwhile, the person who invested in Kileleshwa will break little sweat finding a buyer willing to fork well over Sh120 million for his modest property. The first owner, despite his property occupying a larger area, ends up suffering economic loss because buyers don’t expect such a large home in that neighbourhood and aren’t willing to pay a big premium for the extra space.

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Ruiru bedsitter 15k? Kae ena goma!

Acha watu wajenge mbloti zikue mob kuliko watu rent ishuke, by the time nahama kwa mathe naingia straight kwa 2 bedroom ya 15k

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Unajiita Mzee Mzima, and you are marked as village elder, na bado unakaa kwa nyanya yako…

This what makes Jesus not wish to come back!!

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Please state your other handle

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Ni aibu

Izo rates ni za south b awache ujinga…

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Na bado research yake ni bonoko pia,someone buying land in mwihoko at 1m can’t afford to blow 30 m on a ten bedroom.ata spend kitu kidogo sana.no wonder amejichenga.

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Someone has the audacity to tell us how he katias ladies and yet he lives under his mum’s roof. Just a thought, before he goes to sleep he is reminded," baba enda ukojoe alafu uende ulaleeeeee sawa?"

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jesos ati kileleshwa a small plot for 15 mill? they are ranging in the hundreds of millions

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i know of a working lady who was being screwed by students in the high school she was working leave mzee alone

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Umepata points ngapi kijana?

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Weka hekaya tukupe likes upate cheo Kama sii hivyo tembeza kende huko
→→→→→

http://i.imgur.com/eKggQuV.jpg

Mzee mzima as a Kid. Miaka ndogo lakini kuchapa sura na uzee…

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Ouch.:eek:

Where have I said this?

Juzi ulintusi nikakunyamazia ukaona ni paka imenyeshewa sio?

Yaani bado una machungu nilikuita malaya? :D:D:D

Wewe ni malaya wa pesa nane bado io maringo uko peleka uko ----------------------------->

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“People tend to be generous when sharing their nonsense, fear, and ignorance. And while they seem quite eager to feed you their negativity, please remember that sometimes the diet we need to be on is a spiritual and emotional one. Be cautious with what you feed your mind and soul. Fuel yourself with positivity and let that fuel propel you into positive action.”
Wise people don’t return insults with insults but with wise words, sawa kijana. I will strive to help you see the sense in life even if it means swallowing your insults.

KUMBAFF WEWE!! Unanitusi then unangoja nikupatie wise words? Unavutanga bangi wewe?

Mimi ni live wire as Duale said, ukinichokoza hutakaa apa na amani

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I love your hips…

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Now this escalated quickly. From a sensible business forum to a war front laced with unspeakables and personality attacks. All the same, I learned a lot

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Since naona thread has taken a dive south,Wacha nikuulize unakija UG lini nikutembeze?:):slight_smile: