In 2015, I lived and worked in Mombasa. I had rented an apartment that had a servant quarter (SQ). The estate was very beautifully done with landscaped gardens, a swimming pool clubhouse etc. We decided to furnish the SQ and let it out on Airbnb. This was the best investment decision that we made as a family that year. We would let out the SQ at $26 a night. The rent from the SQ would pay the rent for the...
"Hedonic" literally suggests that the buying of the target property, and hence living in it, is a source of "pleasure". The better (and hence more expensive) the property, the higher this specific notion of real estate pleasure, stemming from property characteristics leading to such sensations: a nice view, proximity to services and pleasant life, the presence of an elevator, safe and sufficient parking...
Today we look at stand alone houses. Recently we saw how apartments depreciate in value. Read more about that here Scenario 1 John* builds a stand alone residential house in an uncontrolled area with the following neighbors. Single rooms made of iron sheets on one side A hostel with 6 floors towering over on the other side A church on the other side A boda boda stage on the front side. He...
For about a decade, I have worked as a valuer (some pronounce it as varier, others varuer). Click here to learn more about what a valuer does. I have seen properties appreciate in value from 1m per plot to 10 million per plot in 10 years. I have also seen properties (both stand-alone and apartments) lose value from 12 million per unit to 7 million per unit in 10 years. What went wrong for the person (Call...
Recently, a friend called me (let’s call him James) and said that he was coming to Thika road and that I should go and help him check out an apartment that was on sale. I went and found him looking all excited that he had found what he had been looking for. An affordable apartment in a block of 3 floors is located in a master planned estate with the following features; many green spaces complete with...