Property Developers

[Azor_Ahai]

Nina maswali kwenyu. Engineers, architects, Quantity surveyors, contractors, and other insiders in the construction industry are also free to comment.

1. What are the typical profit margins in property development?

2. This one goes to real estate agents (sales). How long does it take to sell a typical house e.g. a bungalow or maisonette (on average)?

[cortedivoire]

1. Property development profit comes down to material vs selling price. The location also matters. You can’t put tiles in the sitting room on a house in Karen likewise you can’t put mahogany floor on a rental in pipeline.
2. The location of the house also matters. Middle class areas like nyayo estate, south c, Donholm most likely the turnaround selling time can be 1 week to a month. High end areas may take like 3weeks to 6 months

[Jimit]

It doesnt matter. Whatever umejiambia thats the correct answer juu ata malaika akishuka na tarumbeta hutakubali jibu lingine

[Azor_Ahai]

@Jimit

It doesnt matter. Whatever umejiambia thats the correct answer juu ata malaika akishuka na tarumbeta hutakubali jibu lingine

If I wanted your opinion I would beat it out of you sh*tmuncher. Hii thread nataka responses from important people sio chokosh ya Narok.

[Azor_Ahai]

@cortedivoire

1. Property development profit comes down to material vs selling price. The location also matters. You can’t put tiles in the sitting room on a house in Karen likewise you can’t put mahogany floor on a rental in pipeline.
2. The location of the house also matters. Middle class areas like nyayo estate, south c, Donholm most likely the turnaround selling time can be 1 week to a month. High end areas may take like 3weeks to 6 months

Even cars don’t sell that fast buana at market prices. Uko sure?

Also, I understand that my questions are very broad. For specificity, let’s say mtu amejenga 3 bedroom bungalows place kama Juja ama Kiserian.

[MTINGIZA_KITANDA]

@Contractor can give you a better response. He’s in that field. Personally nime invest in real estate but not commercial.

[Jimit]

@Jimit

It doesnt matter. Whatever umejiambia thats the correct answer juu ata malaika akishuka na tarumbeta hutakubali jibu lingine

@Azor Ahai

Even cars don’t sell that fast buana at market prices. Uko sure?

See??

[Azor_Ahai]

@Jimit

See??

Only a retard like you would fail to question such a response. Where on earth does property, an illiquid asset class, turn around in less than a month on average?? You must be one of those morons who believe everything they read without thinking critically.

[MTINGIZA_KITANDA]

@Azor Ahai

Only a retard like you would fail to question such a response. Where on earth does property, an illiquid asset class, turn around in less than a month on average?? You must be one of those morons who believe everything they read without thinking critically.

Mkuu…naona mmeanza kukula Bitcoin…:D:D:D

[Azor_Ahai]

@MTINGIZA KITANDA!!!

Mkuu…naona mmeanza kukula Bitcoin…:D:D:D

[SIZE=1]Cheza chini. [/SIZE]

[mswazi]

Property developers in Kenya usually multiply the cost of construction by 10 to set the sale price. But venye uchumi inaenda, they will have to reduce that by half very soon.

[anon94046782]

@MTINGIZA KITANDA!!!

@anon94046782 can give you a better response. He’s in that field. Personally nime invest in real estate but not commercial.

Depends… Answer ni quite broad… But in short…

Hapa watu huchomeka… Especially if funds are from a LOAN…

The only beneficiaries are.

• BANKS.
  -MAFUNDI.
  -MATERIAL SUPPLIERS.

So… The only models I’ve seen that are successful are…

-build apartments - have to be many… Sell them off… Then charge extremely high service charge… Also make sure you get a cut on all service providers… Like internet… Make sure you’ve built an amenities center hosting shops, a small school… Etc… Sell these as well… And charge goodwill by default…

Otherwise… People who make it big in real estate are those with multiple rental units… LOAN FREE - (very important)…

-the above principle has been applied by Edaman… Where they sell units dirt cheap… But collect an average of ksh. 4000 per unit from their current almost 10,000 units… (inclusive of phase 5)… Making a whooping - ksh. 40,000,000. Per month on service charges - plus internet.

Same principle is applied in nyayo estate… Where they collect on average ksh. 30,000,000 or so from all those houses…

BOTTOM LINE… (avoid a loan if possible…)

[Yuletapeli]

@MTINGIZA KITANDA!!!

@Contractor can give you a better response. He’s in that field. Personally nime invest in real estate but not commercial.

Hio sector iko aje, nina some plots nadai nijenge ma keja nikiuza

[Ndekwe]

Ingia hiyo biashara Kama Nia yako ni kusafisha pesa. Otherwise kwa sahi it’s just a cash cow, checks and balances don’t add up. Watu walifaidika na hiyo biashara ni went waliunda manyumba 20yrs ago

[x-trail]

@mswazi

Property developers in Kenya usually multiply the cost of construction by 10 to set the sale price. But venye uchumi inaenda, they will have to reduce that by half very soon.

Wacha vako kwa hivyo zile flat naona kubwa zaa 100 million zinauzwa zilitengenezwa na 10million

[mswazi]

@x-trail

Wacha vako kwa hivyo zile flat naona kubwa zaa 100 million zinauzwa zilitengenezwa na 10million

I’m speaking from experience, having built a house myself. Judging by the prices of the same house I see in the market, I concluded that they multiply the total cost of construction by around 10 when setting the sale price.

[Kibinda_Nkoye]

@anon94046782

Depends… Answer ni quite broad… But in short…

Hapa watu huchomeka… Especially if funds are from a LOAN…

The only beneficiaries are.

• BANKS.
  -MAFUNDI.
  -MATERIAL SUPPLIERS.

So… The only models I’ve seen that are successful are…

-build apartments - have to be many… Sell them off… Then charge extremely high service charge… Also make sure you get a cut on all service providers… Like internet… Make sure you’ve built an amenities center hosting shops, a small school… Etc… Sell these as well… And charge goodwill by default…

Otherwise… People who make it big in real estate are those with multiple rental units… LOAN FREE - (very important)…

-the above principle has been applied by Edaman… Where they sell units dirt cheap… But collect an average of ksh. 4000 per unit from their current almost 10,000 units… (inclusive of phase 5)… Making a whooping - ksh. 40,000,000. Per month on service charges - plus internet.

Same principle is applied in nyayo estate… Where they collect on average ksh. 30,000,000 or so from all those houses…

BOTTOM LINE… (avoid a loan if possible…)

@anon94046782 you make a lot of sense. They make money not from the unit sale but from the service charge.

[x-trail]

@mswazi

I’m speaking from experience, having built a house myself. Judging by the prices of the same house I see in the market, I concluded that they multiply the total cost of construction by around 10 when setting the sale price.

Nasema hizi flat ziko na nyumba mingi eg za roysambu , pipeline,githu etc

[RodyKonki]

@x-trail

Nasema hizi flat ziko na nyumba mingi eg za roysambu , pipeline,githu etc

Flats za Githu ama pipeline zilijengwa prolly 20 or 30 years ago na cost of construction was way cheaper than now.Then factor in those places zimekuwa zikiokota rent. Unapata flat inauzwa 40 million but ikona monthly rental income ya 300k or more, iyo flat ilisharudisha pesa kitambo.But yenye imeundwa last year ama this year ni uchungu kuiuza bei ya kutupa. Maybe foreclosure.

[x-trail]

@RodyKonki

Flats za Githu ama pipeline zilijengwa prolly 20 or 30 years ago na cost of construction was way cheaper than now.Then factor in those places zimekuwa zikiokota rent. Unapata flat inauzwa 40 million but ikona monthly rental income ya 300k or more, iyo flat ilisharudisha pesa kitambo.But yenye imeundwa last year ama this year ni uchungu kuiuza bei ya kutupa. Maybe foreclosure.

So kujenga saa hii ni tafash