Rent-to-own homes for middle class on the way
Shauri Moyo in Nairobi is home to many low-income earners. Housing reports indicate that most low- and middle-income housing estates around Nairobi’s central business district are characterised by low-rise, old, dilapidated buildings, overstretched infrastructural services and illegal extensions that have resulted in urban decay. PHOTO | FILE
What you need to know:
- Due to the high cost of land, owning property remains largely a dream to many people. Housing reports indicate that most low- and middle-income housing estates around Nairobi’s central business district are characterised by low-rise, old, dilapidated buildings, overstretched infrastructural services and illegal extensions that have resulted in urban decay.
- Those who have the means can pay up to a Sh1 million deposit. The monthly instalments range between Sh16,000 and Sh94,000 per month, depending on the repayment period.
- Those who have not cleared their balance but were vetted and had shown the interest, will still be allowed to move in as long as they meet the threshold.
Due to the high cost of land, owning property remains largely a dream to many people. Housing reports indicate that most low- and middle-income housing estates around Nairobi’s central business district are characterised by low-rise, old, dilapidated buildings, overstretched infrastructural services and illegal extensions that have resulted in urban decay.
With developers having concentrated mainly on the high-end market, many middle- and low-income homes had lost hope of ever owning a house.
But all is not lost. A number of housing projects are coming up to help those in the low- and middle-income bracket own homes.
For instance, Urithi Cooperative Society launched an ambitious programme to enable low-income earners and investors own houses across the country. on a rent-to-own basis in Joska
EASY PAYMENT METHOD
The society’s Chief Executive Officer, Mr Kelvin Majau, said: “We have started an affordable housing scheme with 12 units that will see Kenyans own their own houses without straining.” The project, known as Osten Terrace Gardens, will be launched in December in Joska on a rent-to-own basis. It will comprise a modern estate with two bedrooms per unit on a three-storey building. Each apartment will be sold for Sh1.6 million.
“We realised that most Kenyans dream of owning a home and that is why we came up with an affordable scheme. With a minimum deposit of Sh200,000 and the monthly payments of the balance for four years, this dream will come true,” he said.
Those who have the means can pay up to a Sh1 million deposit. The monthly instalments range between Sh16,000 and Sh94,000 per month, depending on the repayment period.
Those who have not cleared their balance but were vetted and had shown the interest, will still be allowed to move in as long as they meet the threshold.
“Our purpose is to see to it that one is removed from the yoke of paying rent somewhere when he/she can comfortably have his or her own house. Whatever he pays as house rent will be used as monthly instalments to enable him or her own the house,” said the society’s chairman Mr Samuel Maina.
The society allows those who are in position to clear the whole amount and wait for the houses. “The Construction will start in earnest in phases. Phase one will be for the members who will have cleared or paid more Sh750,000,” said Mr Maina.
In a report on housing released by the then land minister Jacob Kaimenyi,in February this year, rapid urbanisation and the realisation of Vision 2030 are among the reasons why the demand for housing and the prices have shot up.
