Freedom from heavy debts before you retire is a good thing and will give you peace of mind in your sunset years.

 

However, on a cautionary note, we would like to strongly advise you to stay away from the so-called get-rich-quick schemes because they usually end up being conduits for permanently separating unsuspecting individuals from their hard-earned savings.

 

Normally, when it comes to raising savings and investing, there are very few opportunities, if any at all, that can generate “quick returns” consistently without leaving the participating individual in tears and regret.

 

Building a solid foundation on which to grow your wealth based on strong principles is the best way of ensuring the safety of your money and a comfortable retirement for you.

 

Set achievable targets within reasonable deadlines because having a plan of action for your goals will help you navigate towards them with ease.

 

Since you already have some impressive savings, looking for a piece of land that fits your budget would be a good start. And because your son is close to completing his college studies, you may soon end up with a little more disposable income which you can set aside to construct your dream house.

 

Building a residential or commercial building for rent may help you increase your savings since you have a job and a regular income from rent. And given that you are still in gainful employment, getting a construction loan may be easier, though you will have to consider the project you will be undertaking so that the financial assistance is able to cover the total construction cost.

 

This will mitigate stalling of the project due to lack of funds and eliminate the possibility of being overburdened by the loan repayments for the simple reason that you cannot service the loan since the project is not giving a return. Get in touch with either your sacco or financial institutions to strike an agreement.

 

We wish you all the best in your endeavours.

 

The writer is a research analyst at Zimele Research. Write to:

financialmakeover@ke.nationmedia.com

Often, apart from the arbitrary rent increment, the one-month deposit is never refunded, which is against the law, and as a result Ms Oketch says the new Ministry of Lands, Housing and Urban Development should come up with policies to protect tenants from such exploitation.

 

As the government puts its house in order, Mr Jackson Kiptoo, a real estate developer in Eldoret, says there is need for awareness campaigns to sensitise tenants and landlords about civil rights and liberties.

 

“Some are overstepping their mandate due to ignorance of the legal provisions,” he notes, blaming some lawyers “for accepting to be used to intimidate tenants” in complete disregard of the law. “I have witnessed many cases where lawyers are approached by wealthy landlords to issue notices of vacation to tenants, often without adherence to the three-month notice as required by law,” he says.

 

Demand for houses in Eldoret, fuelled largely by the growing number of learning institutions in the town and its suburbs, is at an all-time high.

 

Learning institutions in Eldoret include Moi University, The University of Eldoret, Eldoret Polytechnic, Alphax College, and African Institute of Research and Development Studies.

 

Others are Elgon View College, Splendid College, Eldoret Aviation Training Institute and Nairobi Aviation Institute. Overstretched accommodation facilities have also pushed many students to seek alternative accommodation outside the institutions.

 

Mr Henry Mulwa, an estate manager at Point A Commercial Agencies in Nakuru town, says many real estate agents in the town have “married their clients wellbeing to their businesses to ensure maximum financial gains”.

 

His company manages over 500 residential plots within and outside Nakuru town, and he revealed to DN2 the lengths he would go to ensure his tenants are satisfied and get the value for their money, despite the large number of property he is responsible for.

 

Normally, a tenant is expected to pay the equivalent of one-month’s rent as deposit before moving in, that month’s rent, the agency fee ( pegged at half the rent), as well as the standard Sh2,500 for the electricity meter.

 

The deposit and utility fees are refundable if the tenant gives a one-month notice before moving out.

 

“We have a team, and each player in the team has to follow a strict programme on how they are supposed to look after the residential and commercial areas allocated to them,” Mr Mulwa says.

 

The programme, he explains, details the rights of tenants and how they must be fulfilled and respected, as well as how to add value to the relationship between the agent and the tenant.

 

His sentiments are shared by Johnston Mwangi, the director of John Johnson Limited, who is also a property manager in Nakuru.

 

Both men agree that it is important to lay down written rules that will guide their relationship with the tenants before money exchanges hands.

 

“The tenant has to sign against the rules describing what we expect from each other and the retributive actions should any of us renege on our part,” he says. “The agreed-upon rules are not ceremonious, but codes of conduct that have to be adhered to religiously.”

 

In the lakeside town of Kisumu, the scenario deeply contrasts. Of the many housing agents, only a handful are registered.

 

Mercy Akoth’s story deeply contrasts the story in Nakuru. Her experience justifies why housing agents have been labelled with all profanities: corrupt schemers, fraudsters and thieves. Each time she was told of a house, she was asked for a Sh 1,000 “viewing fee” to allow her see the house.

 

She was only able to find a bearable house after seven unsuccessful house views and was told to pay a Sh13,000 deposit for a two-bedroom self-contained house in the Carwash area of Kisumu, and then asked to wait for two weeks as the owner renovated the house.

 

A number of hotels are coming up in the headquarters of Uasin Gishu County to cash in on the rising number of visitors to the North Rift region.

 

The high number of athletes, both foreign and local, who come to the area for high altitude training, NGOs, government offices, and oil exploration in Turkana area are other factors that have pushed up demand for accommodation.

 

It is estimated that the region has more than 200 hotels.

 

The Kenya Red Cross is constructing a three-star hotel at a cost of Sh400 million which is projected to be ready by the end of next month.

 

Establishments that will face competition from new hotels include Sirikwa Hotel, Poa Place, Cicada, and Noble Conference Centre.

 

A Sh40 billion real estate project, Sergoit Golf and Wildlife Resort, is ongoing with focus on tapping  into demand for housing in the western circuit,  which is opening up for tourists.

 

The project entails construction of more than 2,000 villas, three golf courses, a five-star hotel, a shopping mall, a conference centre, a hospital, schools, and a private airstrip among many amenities on a 3,100-acre piece of land.

 

The Kenya Red Cross regional manager, Mr Patrick Nyongesa, said the organisation’s new hotel would have state-of-the-art facilities. “Once this facility is completed, it will change the hospitality industry in this region,” he said.

 

The hotel is situated in Elgon View Estate in Eldoret town. Mr Nyongesa said the hotel would provide the finest personalised services in the region.

 

He said the Red Cross hopes to cash in on the rich tourism circuit of western Kenya, which is yet to be fully exploited.

 

The Uasin Gishu Country Chamber Of Commerce and Industry chairman, Mr Charles Mose, said the region was expanding and with it the need for more hotels.

 

Mr Ishmael Chelanga, the North Rift deputy regional tourism officer, said tourism in the region has been growing.

 

He said in 2009, there was only one tour operator but today there are more than 15 who have played an important role in bringing in visitors.

 

“Tour operators are drivers of the economy as they bring in visitors to stay in our hotels,” said Mr Chelanga.

 

He said the bed capacity in the region was still low and, therefore, the need for more people to invest in the hospitality industry: “We are encouraging more hoteliers to set up modern facilities,” said Mr Chelanga.

 

The region has 3,840 beds compared to a potential of 5,000, he said.

 

“We want each county to have standard facilities and we want investors to tap that potential,” said Mr Chelanga.

 

The Ministry of Tourism has introduced home-stays where tourists live with local residents. Several homes have been approved for the exercise, he noted.

 

“We have seen the cost of land skyrocket, especially within the city suburbs; we ensure that the cost of land will be friendly to the members before purchasing it. We also ensure that we have at least a unit so that we become part and parcel of the project,” Lucy says.

 

Tofina Rom Builders have since put up many other projects for its members.

 

“Our Tofina Ring Road project on Kasuku Road is sold out; it was going for Sh8 million for a three-bedroom apartment flat, all en suite. Our other projects are Conquest Park on Mandela Road, Lavington at Sh9.3 million, Socian Villas on Tinderet Road going for Sh11.3 million, and Tofina Hatheru Road going for Sh11.2 million. All houses are three-bedroom – all en suite,” she says.

 

Mboya says that in 2010, he managed to secure a four bed-roomed all en-suite townhouse on Amboseli Drive in Nairobis’ Lavington at a cost of Sh8.5 million. The current value of that house stands at Sh40 million.

 

Charles Peter Mwangi of Rubyland Limited says the reason this model is fast becoming popular is that Saccos allow members to decide on all aspects of the project, including design, architecture and engineering.

 

“I belong to one of these Saccos and I like the fact that there are regular meetings between the executive directors in consultation with the facilitating committee, thereby keeping members informed of the day-to-day matters in their respective projects,” he says.

 

This arrangement ensures transparency and accountability as most members will agree on the construction timetable and payment remittance installation frequency.

 

Lucy says that, depending on the nature and size of the project, the normal agreeable construction period is between 12 and 18 calendar months.

 

“Of urgency is the money required for the purchase of land. After land is purchased, members can enjoy some breathing space to source for construction funds while approvals are sought from the relevant authorities,” she says.

 

“We are proud of the unity and neighbourhoods that we have so far created. We are happy that we have conceptualised an idea, which in turn has helped many families secure affordable yet elegant housing,” Lucy concludes.

The aristocrats have registered a new company, Ngombe Limited, to inherit some 1,680 steers and 792 cows in his stable and a separate entity to hold its real estate property.

 

Each steer is estimated to cost Sh65,000 while a cow is priced at Sh140,000, meaning the company is starting with an asset base of about Sh215 million.

 

The Delameres have also registered Land Limited to hold its real estate property among them the over 50,000 acres Soysambu Ranch in Naivasha, which is estimated to be worth more than Sh5 billion.

 

News of the succession plan came from documents the family has filed with the monopolies commission and a subsequent notice in the Kenya Gazette authorising the transaction.

 

“The Competition Authority authorises the acquisition of 1,680 heads of steers and 792 heads of cows from Delamere Estates Limited by Ngombe Limited,” reads a statement from the authority.

 

Competition Commissioner Kariuki Wang’ombe, while confirming the registration of Lands Limited, said the firm had filed the information as a precautionary measure, but the commission had told the aristocrats that it was not necessary.

 

Attempts to get a comment from Tom Cholmondeley, a grandson of Lord Delamere, were unsuccessful and the estates managing director, Nelson Rotich declined to respond to our questions insisting that it was a purely private matter.

 

Sources, however, informed the Business Daily that the sale is meant to free the hands of Delamere’s descendants to take ownership of and make use of their inheritance as they wished.

 

The Delamere properties have been under the care of Lord Hugh Cholmondeley, the Fifth Baron Delamere, since 1979. The 79-year old is father of Tom Cholmondeley, better known for twice killing trespassers at the Soysambu Ranch.

 

Mr Cholmodeley was in 2009 found guilty of manslaughter after the death of a mason, Robert Njoya, who he accused of poaching in the Soysambu Ranch.

 

He got an eight- month imprisonment sentence for the killing, having been held in custody since the shooting incident in 2006. He served only five months and was released early for good conduct.

 

In the second case, Mr Cholmondeley was once again arrested for shooting game ranger Samson ole Sisina in 2005 following what was termed as a distress call from his staff.

 

The two killings caused a publicity crisis in the Delamere empire as activists called on consumers to boycott Delamere dairy products, claiming that Mr Cholmondeley had used his influence to escape full responsibility for his crimes.

 

The boycotts forced the aristocrats to lease out their dairy business to Brookeside and to move some of their stock to Njoro. The Delamere Milk Shop, on the Nakuru-Nairobi Highway has remained a favourite rest spot for many travellers.

 

Mr Cholmondeley’s actions have been the only reason that the older Delameres, who according to locals treasure their privacy, have come out in the public.

 

The Kenya Homes Expo has been running for eight years and has grown to become one of the largest housing forums in East and Central Africa, where industry stakeholders meet on one platform twice a year.

 

The coming edition will run under the theme, “Aiming Higher”. The focus is to generate higher sales and to attract a larger prospective customer pool as more exhibitors express an interest in the expo.

 

This is particularly important as the exhibition will be staged amid reports of fallen sales, stalled constructions, and stagnated rents. This has happened because towards the end of last year, stakeholders were unsure of the political climate that would emerge after the elections in March. Many of them held back, according to the event founder and organiser, Mr Daniel Ojijo.

 

“The first quarter of 2013, especially in the run-up to the elections, saw house prices stagnate across most developments, with only standalone houses recording a slight price rise of 1.2 per cent and town houses and apartments recording a 1.5 and 0.2 per cent decline in prices,” he says. The statistics are according to the Hass Consult first quarter report for 2013, which says the rents for standalone houses saw a 2.1 per cent rise. Generally, the report indicates, potential customers adopted a wait-and-see stance in the wake of the highly charged political climate.

 

The biannual four-day Kenya Homes Expo is scheduled for the Kenyatta International Conference Centre.

 

The East Africa Portland Cement Company will be the title sponsor, with the Standard Chartered Bank, Hotpoint Appliances, and Wananchi Group as the Gold sponsors, says Mr Ojijo.

 

The expo has come of age since the maiden forum in 2005 when about 40 exhibitors took part. More than 130 exhibitors have confirmed their participation in the May edition.

 

The expo is expected to be the largest in the history of the event, with the organisers having already taken up the Tsavo, Aberdare, and Lenana halls and the courtyard at the KICC to meet the demand for space, according to organisers.

 

The forum may be popular this year because it is an opportunity to re-energise real estate buying, financing, and development consulting, and generally to bring the industry back to life, according to Mr Ojijo.

 

Indeed, if the story of Ms Anne Njeri speaks for many, then the expo has a way of inspiring activity in the housing and property market. Ms Njeri, 36, became a developer in Ruai in the outskirts of Nairobi after attending the October 2012 edition of the Kenya Homes Expo.

 

Out of curiosity

 

“I saw the advertisement of the October 2012, expo on television and decided to visit out of curiosity to see what goes on there. Surprisingly, I got more than I had anticipated. There were not only developers and agents, but also varieties of construction materials and home appliances, most of them at discounted rates or with offers.

 

“It was just amazing to see how much Kenya has to offer in housing, leisure, and home design options, which I wouldn’t have know about had I not attended the expo that brings together many stakeholders,” says Ms Njeri.

 

She adds: “I had heard and read about upcoming mini-cities, golf estates and resorts, but the expo gave me an exclusive opportunity to be among those who have seen their designs from the inception stage, though only on paper.”

 

Inspired, Ms Njeri, who had in the year before acquired a half-acre plot in Ruai but had only used it for small-scale farming, developed ideas.

 

“I was also able to talk to different mortgage lenders and learnt that what I had heard people say about mortgages were mostly half-truths. It was just awesome, as I did not only come out of the October 2012 expo with a house design and interior for my house, but with a whole wealth of real estate information and the necessary contacts,” she explains.

 

The organisers say that they expect about 40,000 visitors this time, up from the 30,000 who attended the April 2012 edition. “We have upped our marketing to ensure that the exhibitors interact with a large number of potential buyers,” says Mr Ojijo.

 

She took the plot that was available at the time, but knew that corner plots were in most cases bigger and were ideal for business premises, even though they are a bit more costly.

 

She thinks her home is special because it is not cramped on both sides and has a view of the front and side of the house.

 

“I have designated extra space to construct a small room to be used for a small retail shop and there is still room for play and engaging in general home chores,” says Ms Kariuki. “It is also easy to give directions to friends visiting my home for the first time as it is quite visible. Visitors do not get lost easily,” she says.

 

Her corner plot is surrounded by a perimeter wall for privacy. “I have had people from companies requesting to brand my wall with their products. And I kept removing political posters during the election period,” she says.

 

Corner plots — usually on the edge of land projects — are rare. This drives up their demand and consequently their price.

 

“Land plots have to have a block with four corners, thus the geometry for corner plots have the additional advantage of offering more outdoor elbow room”, says a sales and marketing assistant manager at Capital Realty, Rayhab Risha.

 

Home buyers do not like to compromise, especially when it comes to land. Thus, developers try to provide at least one side of frontage for every plot for ease of access.

 

Many plots are rectangular, although other shapes are possible as long as the boundaries are well defined. All corner plots have the advantage of having double frontage. “Long-term investors do not mind buying corner plots, as they do not intend to resell. Thus, rise in value may not necessarily matter to them,” says Risha.

 

Corner plots increase in value because of their size advantage. They are usually bigger, even if by a small percentage, than standard lots. Some may cost more, depending on the configuration.  There is the flexibility of further construction should there be need, and this can be attractive for home owners who hope to expand their houses.

 

The plots also provide space that can be used by the family in a variety of ways. Your children can have a larger yard to play in. Fitness and sports fans can also use the space to exercise or store equipment. It can also serve as an extra parking area that can also be useful for barbeque.

 

Lawn chairs and an outside table suitable for outdoor entertaining and family use would suffice here.

 

“Creative gardening and landscaping will not only beautify the property, but also increase its value when it is time for resale,” says Risha.

 

Wycliff Ongwae, a real estate consultant at Tyson’s, says residential corner lots have a slight difference in value and size from the standard lots and have the special advantage of two access routes.

The two ends of the plot

 

With commercial plots, though, the value of corner plots is higher, considering the ease of access, such as for daily service delivery as there is more parking space from the two ends of the lot.

 

Mr Ongwae says buildings such as Jubilee Place, the Stanley Hotel, Meridian Court, Campus Towers, Cotts House, to mention just a few, enjoy these advantages.

 

According to Realtor.com’s Frank Alan Herch, when you begin to examine corner plots as an option, additional advantages and disadvantages will demand your attention.

 

“You need to weigh a variety of concerns related to size, space, privacy, access, noise, safety, and traffic issues,” he advises. “You may require additional investments for home repairs and costs that will come with these lots,” he adds.

 

Thus, he states, one needs to be ready to spend some additional money to turn the corner lot into the safe and comfortable home that you want to buy.

 

Corporate and individual property owners are increasingly seeking management services either by engaging experts in-house or outsourcing professional firms.

 

The demands for property owners are varied and depend on the business or operational objectives.

 

Talking to some colleagues recently, the issue of whether a majority of the property owners appreciate the full scope of property management functions came into focus.

 

“Whenever clients come seeking for property management services they only focus on rent collection. They start by indicating the rent they expect and when they expect to receive it.

 

“Sometimes you encounter strange demands that you need to remit the full rental amounts whether you have made full collection or not,” said one property manager in private practice.

 

Rent collection is important but the value of the full range of property management services is more crucial. For the optimal rent to keep coming the value of the property ought to be sustained.

 

This requires setting out clear management objectives and plans broken down into specific activities that will ensure the objectives of the property owner are achieved effectively and efficiently.

 

Maximising rental income, sustaining property value, minimising operational costs and risks associated with property occupancy may form some of the broad objectives that a property owner could set.

 

With these objectives clearly set, the property manager can map the processes, put in place systems and allocate the necessary financial and human resources.

 

These would be followed by implementation of the activities for each property management function.

 

Setting of practical rental levels; drawing of tenancy agreements that define the obligations of the landlords and those of tenants; lease administration; setting out maintenance operations and programmes; risk assessment and management including procurement of insurance covers; marketing of vacant spaces or units; budgeting; keeping property records and preparation of management reports.

 

All these activities are important and should be coordinated effectively. If proper rental levels are not established in advance, marketing the units will be difficult and the uptake is likely to be slow. This will result in lower occupancy levels and reduced rental income.

 

If the leases are not well drawn and administered, disputes are likely to arise between tenants and the landlord. Such rows could end up in court and lead to new costs and straining relations. If the property is not well maintained it will be less attractive to potential tenants and this will lead to the rise of vacant units.

 

The writer is a land economics and management expert. Email: makathimo@vidmerck.com