Tsavo Real Estate

Has anyone invested with these guys, kicking the tires here as I can`t find any chatter about them…So may be they are delivering on their word to investors. Sitaki visanga kama za Cytonn zilifanya msichana kulia sana pale Twitter.

Don’t call it investment. Utachomeka.

Can`t find negative chatter about them online …or what you know about them?

tafuta hapa kwa kijiji utapata. Elders walisema izo units zao hazina space, watu wanaingia na kuhama kila mwezi, sio place ya kuishi mtu sio student. studio ni nini? kiroom kiko na choo na shelves kwa 1.6 million? io pesa ni enough kujengewa single rooms kama 16 za 3k kwa town kidogo huko mashinani.

They are genuine, I have personally visited some of their properties i.e. in Thidigua and Emabakasi, but I don’t think they are value for money in my own opinion. The rooms are so so tiny, turnover is very high, utalalaisha pesa bure

If they can cater to students for a 4 year period…similar thing to Qwetu, there`s a demand for student accomodation

They claim 95% occupancy…veracity of this info cannot be authenticated

All of them start with huge success, then comes in the failures.

I visited the one in Thindigua and it literally looks like hostels. The road is horrible. Also very congested, and poor ventilation. I happened to visit on a weekend and the debauchery I witnessed was sthng else. Definitely not an ideal environment to raise a kid.

As an investment?

kwanza hiyo ni kama tu hostel za campus, and yes poorly ventilated. I am even surprised raising a kid there can cross your mind, such a place will only be occupied with skimpily dressed ladies and spoilt men

The owner is architect turned developer… all their shit is done in house from design,construction, sales and management. They have basically cut out the middle men.
So far in less than 5yrs they delivered more than 7 projects.
One of my classmates works a tsavo he is currently on ground building the skywalk.
Disclaimer!! Do your due diligence.

I don’t see anything wrong with what they are doing like you state above.
It’s just that biashara yako iko on Steroids na you (and others in the industry) don’t like it.

Why can’t an architect become a developer?
What’s wrong with doing everything in-house as long as it’s done professionally? They don’t have to deal with middlemen!
7 projects in less than 5 years sio Mbaya, bora they have the muscle.

Au unasema nini mujamaa??

Unabuy bedsitter 2m na rent ni 6k. Utarecover investment after you die

He has provided the Intel he has. And invited @Ngimanene na matharo to do due diligence

Kindly, point me to where I said its a bad thing…
Their project are off plan … and the don’t start building until they sell 70% off plan. The info I provided is to show that guy behind it understands what he is doing.
The reason I put a disclaimer is because a while ago I said “so far so good banda homes has delivered 3 projects in my hood” and some idiots tried use it against me when shit went south. But the crazy thing the are still in business and currently building more units.

It is more of a hostel type setup targeting campus age students. Expect problematic dont care tenants, noisy tenants.i.e. watu wanachunisha hewa 24/7, weed inavutwa na harufu iko all over. Si mahali an entry level working class ataishi na amani.

When u invest in real estate, u convert ur cash to an asset. Its not about recovering your 2m, ur money is there in the form of an asset. Hii uneducated thinking yako ndio inafanya vijana wa siku hizi hawaendelei. It is important to diversify u cant just have cash and do business with ur cash. Spread risk evenly.

The purpose of an asset is to create additional income. It can be through capital gains i.e. buy low now and sell high later(this will not happen with Tsavo houses) or dividends(e.g. having ownership in companies), or cash generation through normal business practices (e.g. rent out the apartment.)

A studio should aim for a 10% cap rate to make sense due to the high turnover of clients, higher maintenance and repair costs(due to type of tenants). If you are buying at 1.6m your monthly net operating income (NOI) should be at over 13k for the investment to make sense. The 13k should be after factoring in your costs and the management fees(I don’t know how much the management fee is here).
If we factor in vacancies and operational costs it means you should be renting it out at 18k which I believe is doable here. Normally I trash the buy apartment to rent out but the math on this is adding up for me.

In theory, but practically speaking it is a different story. An apartment worth 15M in Kileleshwa/Westlands will bring in rent worth around 80k-120k. An apartment worth 4M in Rongai or Syokimau will bring in rent worth 25k-30k. That’s just the reality of our market. You cannot fail to invest in real estate because it does not fit in a theoretical model. It’s not always about returns for the investors. Some people want to diversify, some people want to avoid the headache of paying a landlord, some people want to make some money to pay their kids fees even if they are not alive, othees know if they leave their kids 20M in cash in their will the kids will squander the cash, some people want a mancave, some people want a house for their second wives/clandes, and so on. Human beings also grow old and fall sick, they like something that brings in some money regularly without alot of stress or without specialized skills or without them actively monitoring it every day. Not everyone buying real estate looks at things with the maximum economic return lens. It is more than that. That is why Tsavo houses in Thindigua and other areas have sold well, the project has met their needs and you are not smarter than them.