DIASPORA VILLAGE KITENGELA/ISINYA-FOREIGN BANK TO BUILD HOUSES WITHOUT A DEPOSIT

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Diaspora villageNew 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

 

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