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Amount of money to save monthly in order to buy land and build a house in Nairobi – Business this day

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If you want to buy land in Nairobi and build your own house, you will have to save enough money on monthly basis for a couple of years. For the middle class, the average cost of land in Nairobi is Ksh 3 million. To build a 4-bedroom house in Nairobi, it will cost you Ksh 4 million to Ksh 6 million. A 3-bedroom house will cost Ksh 2.5 million to Ksh 4 million. This means that you need Ksh 7 million and above to settle in Nairobi

Right now land is available in Ruiru, Juja, Thika, Rongai, Ngong,Kiserian,Kitengela and Joska.Those are the best places to buy land in Nairobi with Ksh 1.5 million to Ksh 4 million.

Assuming that you are employed and you want to save money until you buy land and build on it, you will need to save Ksh 100,000 per month for 10 years. The total savings will be Ksh 12 million. Since land appreciates annually, by the time 12 years are over, you’ll buy land for Ksh 6 million instead of Ksh 3 million.

If you save Ksh 50,000 monthly, you will have to save for at least 15 years to buy land and build a house on it.

The best salary in Nairobi is Ksh 200,000 and above. This one will enable you to save more than Ksh 100,000 per month. In years you will buy your own plot in Nairobi.

It’s extremely hard to buy land in Nairobi and build a decent house if your monthly salary is below 70,000. With this salary, you will save less than Ksh 30,000 per month. You have to work for more than 30 years in order to buy land in Nairobi and build a house.

Best way to save money for buying land in Nairobi

Instead of saving money in a bank, open a Money Market Fund account and invest the money in it. You will get interest of 7% to 18% per year. If you save Ksh 100,000 monthly, in one year, the total savings will be Ksh 1.2 million. You will earn interest of Ksh 150,000 and more. In 4 years, the interest will be Ksh 600,000. If you add Ksh 4.8 million savings plus Ksh 600,000, the total amount of money will be Ksh 5.4 million. You will then buy 50 by 100 plot in Ruiru for Ksh 2 million and build a 3-bedroom house for Ksh 3.2 million.

Another way of saving your money is through a Sacco.Stima Sacco, Safaricom Sacco, Harambee Sacco and Kenya Police Sacco are among the best Saccos in Kenya. Your savings will yield interest of 8% to 14% per year. You can also buy shares and take a loan. If you buy shares of Ksh 1 million, you are allowed to get a loan of Ksh 4 million. Buy land with this loan money before it appreciates.

The third option is to take a loan.Instead of saving small amounts monthly until you buy land, approach your bank with the payslip and get a loan.If your monthly salary is Ksh 100,000,they will award you a loan of Ksh 3 million to Ksh 4 million.

If your monthly salary is below Ksh 50,000,there is no need of buying land in Nairobi.Go to cheap places and buy land there.In Nairobi it will take forever to build your dream home.


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