New Development.It is a while since my last update. However at Diaspora Village, things are looking pretty good. During the month of August and September, I engaged in some very exciting projects relating to Diaspora Village. First, I have discovered that Isinya town is the nearest built up town to Konza city. This is where the builders of Konza City will be sleeping over the next 7 years.
Konza City Management Draft Bill 2013
KOTDA bill 2013 has entered public discussion. It is posted on Konza City website. Please follow this draft bill. There will be a lot of work at Konza City during construction phase. www.konzacity.co.ke
Diaspora Village Best News
For Diaspora Village to become reality as I dreamt it, I had engaged several foreign banks (Non-Kenyan) to find out if any can finance the construction of all houses and infrastructure to be built in one go.
One bank has come back to me and they have really amazed since they sent someone to Kenya for due diligence. Jamii Bora projects gave us all the points. Good News is that they have agreed to finance and they have also came up with a model.
The project will be built with the assumption that everyone is building a house to sell. The house has been given a selling price of Ksh 9.59m at December 2017. The land owner will come in as joint venture partner.
The land value at December 2017 is put at Ksh3.0m. The land owner also shares in the profit of the sale at 30%. This in money terms is Ksh 0.9m. I know there are a lot of figures but in summary the land owner will get Ksh 3.90m at December 2017.
If the land owner decides to keep the house, they will pay the bank in form of mortgage denominated in US$ at a rate of 7% or Ksh at market rates.
Below table was given to me at Gatwick airport and even made me miss my flight to Germany. They are mainly figures but a lot of you I am sure will understand.
Ksh (m)
House Construction Cost for a 4 bed house on 1/8 Acre (Actual BQ)
3.25
Land Cost 1/8 Acre Plot at December 2017
3.00
Bank interest during construction (18 months) Jan 2016 – Dec 2017
0.34
Total Cost of House including Land & Interest Jan 2016 to December 2017
6.59
Developer Profit Margin (Note land owner is in JV with Developer)
3.00
House Selling Price (Sales will start 2014)
9.59
This table explains how the selling price was arrived at.
If Land owner want us to sell the house return by December 2016
Ksh (m)
The value of land
3.00
30% Share of profit
0.90
Total value of return to Land owner by December 2016
3.90
If land owner wants to keep his house
Ksh (m)
Mortgage amount
3.25
Plus Bank Interest during construction
0.34
Plus 40% Share of Developer Profit
1.20
Total Mortgage Amount for a 4 bed House in the estate on 1/8 of an Acre
4.79
The owner of the land is not required to provide any cash. I will deposit the money planned for infrastructure with the bank as the project deposit of Ksh 50m. The developer will design the house, a 4 bedroom family house and the infrastructure.
Management Recommendation
I personally think it is a blessing from heaven. It cannot get better than this. In fact, this bank and their development company are ready. I told them that we have to complete the buying process and put the title deeds in the land owner’s name. I am therefore recommending that we take the offer.
We must all ensure that all plots are sold so I am asking all buyers to recommend to 2 -5 of their friends. We must sell every plot by 31/12/2013. The project planning will move to next stage.
PLEASE NOTE: If you do not want your plot to be developed, you don’t need to sign for construction agreement when time comes. You can construct your own house if you wish to do so. Not a must to join this scheme.
Payment Plans
Everyone should know now that we are selling the plots with very good payment plan. Anyone can really afford now that we have a 36 months plan. Our financing bank is aware of this.
WITH DEPOSIT PLAN
Ksh
US$
GBP
Euro
Price
870,000
10,235
6,444
7565
Deposit 20%
174,000
2,047
1,289
1,513
Balance over 12 Months
63,810
751
473
555
Balance over 24 Months
34,750
409
257
302
Balance over 36 Months
25,165
296
186
219
The following prices apply as from 1st October 2013.
PAYMENT WITH DEPOSIT
KSH
Plot Selling Price
870,000
20% Deposit
174,000
Balance
696,000
Standing 12 Months
63,800
Standing 24 Months
34,750
Standing 36 Months
25,165
PAYMENT WITHOUT DEPOSIT
KSH
Plot Selling Price
870,000
PAYMENT
Standing 12 Months
79,800
Standing 15 Months
63,000
Standing 24 Months
43,400
Standing 36 Months
33,225
NOTE: Project will start immediately as there is a lot of planning work to be done and 3D of the entire estate will be published soon.
For more information please contact Mr. Kahoro in UK 07984637357, Mr. Seed 07951220695 or UK Office – Tabitha Njambi 07894097708, USA Sales Office
+12143474912 or in Kenya 0726316199. – Email: sales@diasporavillage.co.uk
Diaspora Village Kitengela-Isinya, Foreign Bank To Build Houses Without Deposit
