I pursuit of CC & CL in the TM series. CC3: How to own a house in Nairobi
Specific purpose: after the speech, you will be able to compare ways to own a house in Nairobi.
Test Audience: to see if the purpose of has been achieved. Using this steps, is owning a house in Nairobi
within your reach?
I came to Nairobi in January 2006, approximately 11 years ago, armed with a small shoulder bag with 2 shirts, 2 trousers, a diploma, and nowhere to sleep. I had 5000 shillings pocket money. From my research through daily nation classifieds, there were some hostels in Ngara where you could be accommodated at 3000 shillings per month. I called my friend Njoroge to take me to Ngara and help me identify the hostels. Njoroge, being a FRIEND could not allow me live in a hostel, and he hosted me in their home until I was able to settle. The Njoroge’s were lucky because they lived in their house bought many decades ago by their father. This got me thinking on also owning my own house.
Owning your own house is one of the most fulfilling things in life. It gives one the peace of mind.
In George Clason’s The Richest Man in Babylon, The fifth cure for a lean purse states :
Thus come many blessings to the man who owns a house. And greatly will it reduce his cost of living, making available more of his earnings for pleasures and the gratification of his desires. This, then, is the fifth cure for a lean purse: own your own home.
I will therefore try to demonstrate three ways to own a house in Nairobi, which are
1. Buy a ready-made house.
2. Buy an off plan house through a cooperative.
3. Buy a plot and build your ideal house.
1. Buy a ready-made house
This may be the easiest route to home ownership if you have deep pockets, or you have access to a mortgage plan. A two bedroom ready-made house within Nairobi would range from 6m to 30m depending on the location; while a 3 bedroom would range from 8m to 50m. The price alone would make this option
prohibitive to most Nairobi residents. Depending on the type of house, a bungalow or mansion with its own compound would be most expensive compared to a housing unit in an apartment flat. The advantage of buying a readymade house is you will not go through the hustles of constructing a house. The disadvantage is the cost may be prohibitive to many. If you us a mortgage, the price of any unit you chose would double over the payment period.
2. Buy an off plan house through a cooperative.
In this model, you pool resources together, through a form of cooperative. An off-plan house is which you purchase while it is still on paper. You may only know the location where the house would be build. Your contribution will form the initial capital that will go into building the house. One should be careful to ensure they chose a reputable and honest off-plan providers least the provider escapes with all your funds. THE FOURTH CURE for a lean purse according to the richest man in Babylon is:
“Guard thy treasures from loss”.
The advantage of pooled resources enable you to own a house in a good location. Buying your own land in say Runda or Kilimani may be out of reach, but if you pull resources together, you will be able to afford. The advantage of an off-plan arrangement is it is cheaper than buying an already made house. This is especially so if you are buying a housing unit in an apartment. Another advantage is you do not have to deal with the hustles of following up with masons and handy men. The cost of an off plan unit would range from 4m to 10m for a 2 bedroom house and 6m to 15 for a 3 bedroom house depending on the location. The disadvantage of this is you may get crooks who run away with you home savings.
3. Buy a plot and build your own house
finally, you may opt to buy land and build your ideal house. With this option, you have full flexibility, and you are the master of your own fate. You can buy a plot and pay for it within a certain period. Then you can start building the house immediately you have gathered enough resources. The advantage is after you have built the initial structure, the four walls and a roof, you can move in and continue with the finishing while inside. Another advantage is you move at your own pace, and there is no pressure from financiers unlike taking a mortgage. The disadvantage of this is the cost of a plot within Nairobi would be prohibitive since you are not getting economies of scale provided by the cooperative model.
In conclusion, the option you choose to own a house will depend on your own circumstances. You can choose to buy a ready-made house, purchase an off-plan through a cooperative, or buy land and build.
I chose the second option some three years ago, purchased an offplan house, and now I live in my own
With these three methods of owning a house within Nairobi, is owning a house within your reach?
Great, then start today in your journey into home ownership.