At this price the cap rate is 0.9%. It’s most appropriate value is 6.5 - 7 million. If you buy it for that 65 million. It will take you over 65 years to recover your investment. People really be stupid out here
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avoid such deals like a plague
why not build one with your 65 million. Someone selling a house like that is hiding something.
For those who are saying that this investment is stupid, you probably are the dumb ones. most of you would piss on that money with stupid complicated attempts at business. Why do you think a guy building something like this is interested in recovering the investment?
If he’s not after “recovering the investment” he is a fool.
This is a good deal:
Return on investment =[(625,000×12)/65000000]×100=11.5% pa. That is very good % rental yield.
Time to recover your money = 65000000/625000=104 months ie 8yrs and 7 months. Anything less than 10yrs is a good deal.
Either you are trolling ama hauna akili
A very jaruo thinking… Flats huuzwa na kununuliwa kila siku for so many reasons na sio zenye unafikiria…
Hii Nairobi hakuna ploti iko more than 80% occupancy.
According to the below estimates, the building cost him around 30-40 million to set up. The rest around 20 million was the cost of the land. Happ ndio wakenya wananyoroshwa. You buy a plot of land empty for half the value of what you will build on it. Hapo ndio hesabu inakataa inabidi uuze . Barren land is overpriced in Kenya[ATTACH=full]496070[/ATTACH]
Where do you invest 65m in Kenya and receive income of Shs. 625k per month in rent? Especially stand alone units? For Stand alone units, you will possibly at best receive 150k per month… for apartments in lower middle class areas, around 450k at best…
Brathe hata kama uko na degree wacha kutubeba malenge. The only plausible reason why someone would want to liquidate the property in question is because he made a fucked up investment decision na sasa anatafuta the next idiot to offload his troubles.
A very jaruo thinking… Flats huuzwa na kununuliwa kila siku for so many reasons na sio zenye unafikiria…
Tell us those reasons.
Most of it is a soeculatize bubble. Unajenganisha manyumba. You hype them up, put in some lights ndio ikae nyumba zina watu, alafu unakula corner, leave the sucker holding the bag of shit
You have alot to learn, reduce chest thumping and educate yourself. It is not always about recovering investment with real estate. It could be hedging against inflation, diversification or many other valid reasons. If you think about recovering investment there are very few investments out there that one can do without significant risks.
Exactly what I said.
Siku hizi watu hawajengi " wakule kidogo kidogo". They building to sell. Nyumba inapakwa maridadi na inaoshwa na power hose once a month. If they getting paying renters it’s good but not the goal. People build to sell at double the price sometimes.
Not that this builder gas done that. But people do it all the time. Juu residential real estate imechapa sana siku hizi. The goal is now commercial buildings with hyped value.
First of all, hakun over 50% occupancy mahali popote hii nairobi. Uipata ni mungu, Second of all, you have not accounted for inflation, the math you posted does not account for an average inflation rate of 10% plus the taxes, maintenance costs, and general repairs. There is also the VERY big chance a tenance goes crazy and burns it down, and or just has an accident that burns the entire place. You most likely do not have insurance for it, and if you, you have to factor it into the mathematics.
You are looking at about 20 years to pay yourself back minimum. You have also to factor in election shocks every five years, which leaves most buildings like those as people scrmable for the villages, and busineses are destroyed. Alafu unafikiria tenant watakuwa wwakilipa on time like clockwork 
Mzee shika hapa(extends an open palm). Uko na degree ya ukweli. Most tenants are wakandans ikifika kulipa rent. Many are the times we moved houses unceremoniously in Eastlands tukiwa bachelors unawacha mattress pekee kwa floor after defaulting on months on end. Hata saa hii many tenants will tell you to go fuck yourselefu ukiwasukuma story za rent. Watakwambia ungojee kidogo.
Nimeona ile upuzi iko hapa. Sina maoni kamwe. Karibia @Azor Ahai