A real estate expert and investor has explained why it’s better to build an apartment than a mansion especially if your cash flow is not good.
“Someone asked me why it’s more profitable to buy a high-rise apartment than to build a mansion. Well, here’s the breakdown: When building a house, you must buy land, and currently, good land is priced at around 1 million shillings and above. Constructing a 3-bedroom house and fencing it could bring your expenses to a minimum of around 8 million shillings. That’s a whopping 9 to 10 million shillings’ minimum spent. Now, for such an investment in a remote area like Juja or other similar areas, this money is essentially kept idle.
On the flip side, investing in a high-rise apartment in city suburbs offers numerous advantages. Firstly, the demand for urban housing is consistently high, ensuring a steady stream of potential buyers or renters. Additionally, the appreciation of property values in city areas tends to outpace those in remote locations. A young individual purchasing a high-rise 3-bedroom apartment for 15 million shillings or less in city suburbs stands to sell or rent out the place, covering the mortgage fee and still making a profit of at least 30 to 40 thousand shillings per month.
When considering such investments, it’s crucial to weigh factors such as location, amenities, and potential for appreciation. Investing in urban properties not only offers immediate returns through rental income but also holds long-term value appreciation potential. So, while building a house in remote areas may seem appealing, investing in high-rise apartments in urban centers offers greater financial prospects and stability”
Despite the advise, other Kenyans have contrary opinion. They claim that having a home is important. Something bad might happen and one finds himself incapacitated. Without a home it will be hard to survive paying rent. You may also fail to manage your rental houses, leading to losses.
Majority agree that building apartment is good but they also add that one should have a home too. “It’s an embarrassment to live in a rented apartment with your 4 grown up children”
