The National Housing Corporation (NHC) is seeking Sh7 billion from private investors to help fund, build and transfer 3,500 low-cost houses in Athi River, Machakos County. NHC acting managing director Patrick Bucha said the deal under a Public Private Partnership model will see the corporation collect rent and pay the private financiers within a period of between 15 to 20 years. This will allow investors to recoup their capital over the period after which the lease will terminate and ownership revert to NHC. The corporation says the participation of private investors in housing development projects will result in faster project implementation and will inform off-plan purchases from their customers. “We are looking for Sh7 billion through IFC under the Public Private Partnership model. Under this deal, the investor coming in through IFC will be able to finance, develop and transfer the houses to us so that he can get back his money,” Mr Bucha said in an interview on Thursday. The houses are part of the 10,500 units at Stoni Athi Waterfront City set to be developed on a 150-acre piece of land. They are composed of one, two, and three-bedroom unit houses that come with social amenities such as…

While it’s often assumed that everyone has a fundamental understanding of personal finance, there is a growing need for financial education. Ushering younger generations into a stable financial future is one of the best things you can do for them Instead of making smart financial decisions that pave the road to a comfortable life and retirement, many people end up spending their adult lives climbing out of the financial hole they created when they were younger; fortunately, there’s a way to avoid this. Investing in financial education will lead to wise real estate decision making, financial success and freedom. If you’re working with millennials who are looking to invest, offer them the following advice: Have at least three months of income saved before investing in property or the stock market. This will prevent extreme financial hardship should job loss, an accident, or some other unforeseen mishap occur. A high yield savings account or a money market account is a great place to save a down payment; traditional savings accounts will grow funds, but just barely Buying versus renting Housing is the largest single expense for most people. While buying a home can cost a pretty penny, renting might cost your…

Successful investors have some common traits. Following their traits increases your chances of being successful when you are new in the industry. Successful real estate investors undergo several stages in order to gain/maintain their success in the industry. Simply being successful in real estate investments is not an overnight adventure but a combination of many traits possessed by investors in that industry. By starting a real estate investment is not enough to gain success. It is a process and a series of growth that every investor goes through before fully understanding the business/ gaining from the investment. There are different ways in which one can grow and accumulate wealth in real estate industry. Looking at traits of fellow investors in real estate industry, it is not hard to make money and improve financial situation.It is easier to learn from fellow investors by following the examples for what they did to succeed instead of going through trial and errors. There is always a room to improve regardless of how long you have been in business. Here are some of the traits that most successful real investors have in common; Know Your Limits When you are starting out, it is important to…

We have compiled real estate marketing ideas you can use to promote your businesses. These apply whether you’re getting started or are an experienced agent. As a real estate agent, one question is always on how to boost your sales so that this in turn increases your income. In this article, we shall go over 9 different things that you can do as a real estate agent that will result in more income. Read to the end and you can identify the right solution for yourself. 1. Expand Your Sphere of Influence One way to build contacts and generate leads is throughnetworking.Networking focuses on generating real estate leads via the people you already know, including your family, friends, classmates, business associates, sports team members, and even service providers (e.g., your doctor and hairstylist). 2. Work under a seasoned mentor Working under a mentor who is in line with your area of specialization is a good idea. Through experience, such a mentor is able to identify opportunities in the market that a beginner may not identify. The mentor will also identify threats that may face the business and provide solutions on how to mitigate them. This will save so much of…

The ownership of land in Kenya is not absolute and this right can be lost any time Land Rights in Kenya: In 2010, Kenya celebrated the passing of a new Constitution. One of the big wins for Kenyans was the clear provisions on land. The right to ownership and use of this highly coveted asset was no longer left to the whims and caprices of Parliament – it was and is guaranteed in the Constitution. The Constitution sought to buttress this right by drawing a clear distinction between private land, public land and communal land and a distinction between individual rights vis a vis the collective rights of the people of Kenya. Private Ownership of Land The Constitution defines private land as land registered and held by any person under any freehold and leasehold tenure, and any other land declared as private land under an Act of Parliament. In 2012, another big win for Kenyans was the passing of the Land Act, the Land Registration Act and the National Land Commission Act which codifies and consolidates all laws relating to land in Kenya. The passing of the said Acts buttressed the right to private ownership of the land. The Constitution…

House prices continued to decline in the fourth quarter of 2021, at a much faster rate than what was recorded in the third quarter. The Kenya Bankers Association – House Price Index (KBA- HPI), showed that house prices contracted by a higher rate of 3.99% during the quarter, compared with a contraction of 3.70% in the third quarter. The steady decline in house prices broadly reflects the headwinds in the economy that influenced both demand and supply. With demand depressed, the change in house prices was not drastic, partly because of the downward stickiness of prices – a typical characteristic of the housing market. The report attributes the decline to a general price correction trend as well as slow economic growth and weakened households’ purchasing power. In the second quarter, the prices softened by 1.62%, 3.70% in the third quarter and 3.99% in the fourth quarter of 2021. Kenya Bankers Association Research and Policy Director Dr Samuel Tiriongo noted that the sharp drop in prices in 2021 reflected subdued investments that limited the rollout of new supply amidst easing demand. “The broader construction and real estate sector manifested declines in the growth trajectory in the fourth quarter of 2021, growing…

The housing financier said on Monday that the Kenyan government should address the high cost of land and building material. Land prices in Nairobi constitute up to 60 percent of the total cost of a housing unit in a move that looks set to derail efforts by the state to speed up the development of affordable housing units, Shelter Afrique has said. The housing financier said on Monday that the Kenyan government should address the high cost of land and building material, which they said, would worsen the provision of affordable housing in the country. The firm said that studies in the market have revealed that land prices should constitute between 10 to 15 percent of the total cost of a housing unit for it to be affordable, but this is not the case in many African countries including Kenya. “In Kenya, for instance, the cost of land makes up between 40 percent and 60 percent of the total cost of a housing unit, like the case with Nairobi which is the most expensive in the entire continent of Africa,” said the firm’s acting managing director and chief financial officer Kingsley Muwowo. “How do you deliver affordable housing when you’ve…