Building a “Dream House” is one of those life achievements that are at the top of practically everyone’s bucket list.

This is due to the freedom and comfort that comes with living in a house that matches all your interests both structurally and design-wise.

However, there has been a debate about whether to buy or construct a house. While buying an existing house can be convenient and cheaper, depending on the location, constructing one comes with many advantages.

The obvious advantage of building your home is that you get to choose the materials, finishes, appliances, fixtures, and amenities, among other things.

However, all this comes at a cost, a challenge that has seen many Kenyans unable to afford homes.

On an X (Twitter) debate about how much building a typical bungalow could cost in Kenya, a netizen provided a breakdown of the cost of materials required for a three-bedroom house.

He estimated the cost of foundation stones, sand, ballast, and all other building materials and their prices. He went on to give estimations for reinforcements, wood, and even iron sheets.

Co-op Bank giving Sh. 500k to Sh. 8mn loans to buy, build home at 9.9% reducing balance

He said the total cost of a normal bungalow, including finishings, is Sh1.8 million, adding that expenses such as labour are included in the finishing part.

Other Kenyans backed this, saying that to construct such a house, one needs at least Sh1.5 million. While this cost sounds affordable to some, others can’t afford it, with some opting for loans.

Lenders such as Co-op Bank offer affordable mortgages for people in different financial classes, including those earning less than Sh150,000 per month.

All one is required to have is at least six months of consistent banking with Co-Op Bank. What’s more, Co-op Bank gives aspiring home owners the option of either purchasing a ready residential house or buying a plot and constructing one.

The purchased or constructed property serves as the security for the loan, with the loan’s interest rate capped at 9.9 percent per annum on reducing balance.

The loan is open to both employed and self-employed individuals. The maximum loan tenure for employed applicants is 15 years and 10 years for self-employed individuals.

The bank provides loans of between Sh. 500,000 and 6 million for properties around the Nairobi Metropolitan area and up to 5 million for properties outside Nairobi.

Paul Macharia, a homeowner in Juja Kiambu County, says he considers using loans to make investments such as a home.He owns a four-bedroom mansion constructed with the help of loans from Co-op Bank.

”They (Co-op) told me I was eligible for a Sh. 5 million mortgage plan. I have never been that excited in my life. That is when I began my journey of owning a home, and so far, it’s been a success,’’ he says.

“I opted to build instead of buying. That way, I would be able to customize the house’s interior and exterior design according to my taste,” he added.

To access these cheap loans from Co-op Bank, you can visit your nearest Co-op Bank branch or give Co-op Bank a call via:  0711049739 or 0711049811, or email [email protected] for more details.