Point Properties Ltd – Real Estate Advice

Repealing Interest Rate Caps to Stop Real Estate Slowdown

Experts in the real estate sector have welcomed President Uhuru Kenyatta’s decision to reject the Finance Bill and his recommendation to MPs to scrap lending rate caps saying that if parliament adopts the head of state’s position, the industry will recover massively. Speaking during an interview with Business Today, VAAL Real Estate CEO Majeed Saad said that the capping of interest rates has had a negative effect on the sector as contractors and buyers have struggled to access much-needed credit that would have spurred growth Cap on Interest Rates “In my opinion, repealing the law boards a positive future for real estate in the sector. Just like any other industry, real estate depends on the circulation of money in the economy. So I think that repealing it would be best for all parties involved,” said Mr. Saad. In an interview with Business Today in June, Knight Frank Kenya Managing Director Ben Woodhams said that the industry slowed down in 2016 shortly after the capping of interest rates. “When I came into the Kenyan market in 2003, we witnessed growth in the property market through to 2015. Even though the global economic recession in 2007, we witnessed the Kenyan economy and the real estate market…

Absorption of Grade A and B office space in Nairobi rose by 12% in the first half of the year compared to the second half of 2017, according to Knight Frank’s Kenya Market Update – 1st Half 2018. Increased uptake of office space followed the improved political climate and economic recovery in the period, with the country’s Gross Domestic Product (GDP) having expanded by 5.7% in the first quarter. A decline in prime asking rents for offices to US$1.3 per square foot per month, from US$1.4/sqft/m in the latter half of 2017, also boosted uptake. The Kenya Market Update report showed prime residential prices increased marginally by 0.4% in the period compared to a 1.8% decrease in the second half of 2017, while prime residential rents rose by 0.33%. “The increase in prime residential prices and rents is attributed to an improved political climate and the thawing of the wait-and-see attitude among buyers and occupiers,” the report notes. In retail, prime rents remained flat at US$55/sqm/month, with footfall in major shopping malls having increased slightly in the review period as expanding retailers took up anchor tenant spaces vacated by ailing rivals. Occupancy levels remained high for established malls at 90% and…

Sacco turns home ownership dream into a reality

Are you in a SACCO? Here is why you need to join one as soon as possible! As the world marked the International Day of Cooperatives locally known as Ushirika Day two weeks ago, Urithi Housing Cooperative Society handed over 100 affordable homes to families in Juja, Kiambu County. The houses, each sitting on a 1/8-acre land, are three-bedroom master ensuites. The gated community is also served by a new commercial centre and a children’s playground along Juja Farm road. The construction of the new Juja Plainsview Estate began in 2015. It is the fourth project under the Nyumba Mia affordable housing concept, which Urithi has been handing over to Kenyans in the last two years. Read more

6 tips from top entrepreneurs on turning real estate into real wealth — even if you start with nothing

At least 30 U.S. billionaires made their money from real estate; some say that it’s the greatest way to create real wealth and financial freedom. These six tycoons and members of The Oracles suggest how you can invest $100,000 or start with nothing. 1. Start small. Courtesy of The Oracles Tai Lopez, investor and advisor: Although I’m a businessman first, I’ve always been a part-time real-estate investor. You can do both, too. Have a business or career that creates positive cash flow, which you can diversify into part-time real estate investing. I’ve done it for many years. If you’ve never invested in real estate, start small and don’t use all your money. No one’s ever looked back and said, “My first deal was my best.” You’ve got to learn how to read the contracts, build your network of specialists — for example, lawyers and realtors — and develop a good eye for it. This only comes from experience. The beauty of real estate is that you can learn the ropes while starting small: Find some cheap properties, like single-family homes, renovate-and-flips, multi units, or commercial properties. Try to commit as little as possible while you get some notches under your belt. Joel…