Point Properties Ltd – Articles of Interest

Galleria Mall says it cannot pay bank loans

The owners of Galleria Mall are back in court seeking to evict cash-strapped retailer Nakumatt, arguing that the supermarket’s presence in the shopping complex is killing its business. Galleria Mall claims that the Kenya Revenue Authority (KRA) has attached the rental payments from its remaining tenants, making it difficult for it to meet its loan obligations. Parkside Developments Limited claims that KRA has directed the tenants at the Galleria Mall to pay the rents directly to the taxman over unsettled Sh86 million tax arrears. Parkside developments say that the move by KRA has depleted its remaining revenue streams, making it difficult for it to service its bank loan. It wants the court to allow it to take over space currently occupied by the Nakumatt. “That this honourable court hereby grants leave to the interested creditor to exercise its right of forfeiture and re-enter its premises known as unit 0.1 situated on the ground floor of Galleria mall,” reads one of the orders sought by the firm. The firm says it has already secured another tenant who is ready to occupy the space, arguing that Nakumatt has not restocked the mall and this has reduced the foot traffic to the shopping…

Property deals in the country will now be concluded within 16 days, unlike in the past when the process was unnecessarily long. In addition, the government will compensate for all losses incurred in transactions conducted in good faith but based on erroneous information provided by its agencies. This comes after the Land ministry announced a complete overhaul of the procedural bottlenecks that have been making property transactions take unnecessarily long, discouraging would-be investors in the sector. Thanks to the new procedures, Kenya is now ranked 125 (up from 129) among the 190 member countries of the Property Ranking Database. Land Communications Director Joseph Kamuto said the improvement was achieved by reorganising the procedures for registering property deals, authenticating them and issuing title deeds for them Mr Kamuto says the government’s intention of issuing title deeds for all properties, which has so far see it issue 3.2 million title deeds countrywide against a target of 4.5 million by 2022, has also made property transactions more secure. This, he said, would improve the security of property rights, which will, in turn, lead to increased revenue generation for the government since investors will have the confidence to invest in the country since there…

Although there are dozens of mistakes that one can make while investing in real estate, the following 10 are the most common: 1. Expecting to “get rich quick” This kind of wrong-headed thinking is fueled by self-appointed gurus who produce infomercials that make it sound so easy to get rich in real estate. But making money from housing is not easy. Yes, it is a good long-term investment, but so is putting your money in a mutual fund, which is a lot easier. These “gurus” don’t talk about all that hard work, they simply want to involve as many amateurs as possible in the market so that the “experts” can increase their profits. If you want to produce income and capital growth, you have to be smart and be willing to work, research, and learn. You also have to understand your risk tolerance. So if you want to get rich quick maybe you should focus on another type of investment. Remember that the shorter the investment period and the bigger expected returns, the bigger the risk. 2. This is not a one-man show The key to success is building the right team of professionals. At the very least, you need…

Prospective homeowners could borrow up to Sh100 million at 13 per cent annual interest or at six per cent for dollar denominated mortgages from Standard Chartered Bank . This is after the lender introduced the Kenya shilling and dollar-denominated loan products targeting to disburse Sh4 billion in the next two months. Head of retail banking David Idoru said the new products emanated from a market survey conducted in Kenya and eight other Asian countries that indicated home ownership and children’s education enjoyed top priority for most individuals. He said the bank was ready to meet demand for mortgage loans using the new products that mitigate difficulties experienced by Kenyan borrowers after introduction of the interest rate capping law which tightened regulations for dishing out loans. “We are introducing flexibility based on our customers’ feedback. This facility allows customers to plan in the long term up to 25 years,” said Mr Idoru. Read more

Land price rise hits 10-year low on polls, bad economy

Land prices in Nairobi last year grew at the slowest pace in a decade, affected by the prolonged electioneering last year amid a slowing economy and lack of access to credit. Realtor HassConsult says in its 2017 quarter four price index report that land price in Nairobi suburbs only increased by 3.3 percent while that of satellite towns was up by 5.4 percent, both the slowest since the index began in 2007. HassConsult head of development consulting and research Sakina Hassanali said the slowdown in price growth indicated the value of land is no longer immune to political risk, having previously been seen as a safe haven investment whenever there was political or economic uncertainty. “If you look at the overall trend in the last five years, land prices have been growing but at a decreasing rate. It was exacerbated last year due to the uncertainty in the economy. It is only in areas where we have infrastructure coming up that we see prices going right back up,” said Ms Hassanali. Read more… Source | Business Daily

Tatu City land price rises to Sh10.5m per quarter acre

The price of land at Tatu City real estate in Kiambu has jumped by nearly a third to Sh10.5 million per quarter acre over the past 18 months after the developer recorded brisk sales last year. The developer, American firm Rendeavour, Thursday said that individual buyers snapped up 148 plots last year, or nearly half of what has been sold over the past three years, revving up demand and prices. The residential land, dubbed Kijani Ridge, is part of Tatu City’s upcoming mixed-use development of a satellite city that will feature high-end homes, private schools, offices, shopping malls, hospitals, hotels, light industries and entertainment spots. The land price for aspiring homeowners appreciated to Sh10.5 million per quarter acre plot from Sh8 million a year ago, according to Rendeavour Country Head Nick Langford. Read more… Source | Business Daily Africa

You Own A Unit In A Building, With Common Areas

Property for Sale in Kikuyu Town, Kabete. These beautiful 2 bedroom apartments are located in Kikuyu Town.

Sectional property ownership is not well understood by many people, so to discuss it, let’s begin with a story. Among the interesting tales in Swahili folklore are stories about a hilarious and witty character named Abunwasi. In one such tale, Abunwasi built a storey building and sold the upper floor to someone who was looking for a new home. A few months down the line, however, the neighbour upstairs crossed Abunwasi and matters escalated to a point where Abunwasi wanted his neighbour out. So Abunwasi approached the neighbour and asked him to move out. But even after several eviction notices, the neighbour remained resolute that he had legally bought the house from Abunwasi and would not be forced to move out. One day, Abunwasi went up to his neighbours’ house and told him: “It seems like you’ve decided you’ll live in this house forever. That’s all fine by me. I have come to let you know that from midnight tonight, I’ll be demolishing my ground floor home and you can’t stop me because it’s my house.” “What am I supposed to do?” asked the agitated neighbour. “It seems that you love your house very much,” Abunwasi said cockily. “I suggest…