In a bid to cater for those unable to afford mortgages, a 300 houses tenant purchase scheme is currently underway in Nakuru.
Fusion Capital plans to build 1,000 housing units throughout the country in the next three years, of which 30 per cent will be sold through a tenant purchase arrangement that helps home buyers who cannot raise monthly payments required by mortgage lenders.
The company said it plans to build more houses to be sold under the scheme in all counties.
The company, together with a Nakuru landowner, created a joint venture known as Grandepark Estate to build 120 three-bedroom Montey Apartments.
The firm has completed constructing phase one of Montey Apartments, with half of the units already sold at Sh5.2 million each. The project is expected to be completed by the end of 2017.
Fusion Group Chief Executive Luke Kinoti said the company’s plan is to sell all houses whose price falls below Sh10 million under the new scheme.
“This is a good arrangement for home buyers because tenant purchase scheme allows them to continue paying rent as price for the house and they will take possession of the house once full price is paid,” Mr Kinoti said.
SECURE AND PRIVATE
He added that the tenant purchase scheme makes it easier for professionals to own homes and given that they might probably get a pay rise in the future this becomes an ideal home buying arrangement for them.
“I encourage those who want to own a house to buy the houses under the tenant purchase agreement scheme,” Mr Kinoti said. Although not widely used in Kenya, tenant purchase schemes by public organisations provide property buying opportunities for low and middle-income earners.
Housing Finance, ABC Bank, Bank of Africa and Equatorial Commercial Bank have agreed to finance homebuyers seeking money to buy the apartments.
Montey Apartments project is five minutes’ drive from Nakuru. The apartments are directly accessible through the tarmacked Kabarak road, facilitating convenient access to and from the nearest amenities.
With only eight apartment blocks in the compound, each comprising eight apartments, care has been taken to provide enhanced security for the family, without sacrificing privacy.
Fusion Capital normally invests through its real estate financing scheme where it seeks partnership with landowners who contribute land.
“We are responsible for financing and project management to ensure delivery of quality houses and on time and we also carry out marketing of our projects to ensure that the end-buyer is comfortable with what we have built,” he said.
Other developments by Fusion include Marina Creekside Apartments, Meru Greenwood Park mall, 4th Ngong Avenue Towers, Flamingo Towers and Kigali Heights in Kigali.