Urithi Housing Co-operative Society has launched Sh1.6 million two-bedroom apartments along Kangundo Road, Machakos County.
The co-operative, which is set on making in-roads in the low-cost housing segment, said it has come up with a new model where buyers co-own the property right from the start. This, it said, has allowed it to bring down costs by between 40 per cent and 60 per cent.
“Most developers go to the bank to get money to put up the houses, and then they have to factor in interest and their margin on pricing. But with our concept, we cut out these costs and allow home owners to be part of the development, and this is why we are able to deliver a house at Sh1.6 million,” Urithi Housing Co-operative Chairman Samuel Maina said in an interview.
The firm said it is giving buyers the flexibility they need to buy the home with monthly repayments closer to what they would be paying in rent. The Osten Terrace Gardens two-bedroom apartment project is located in Joska, which is about 13 kilometres from the Eastern Bypass along Kangundo Road.
The houses are 600 metres from the tarmac at Joska. The project sits on a five-acre property and comprises three-storey apartments. There are four different plans for non-cash purchasers to pick from.
In the one year plan, after a deposit of between Sh200,000 and Sh1 million, monthly repayments range between Sh50,000 and Sh120,000. For the two-year plan, monthly deposits drop to as low as Sh30,000 depending on the deposit made, while for three years, one can make monthly repayments as low as Sh21,000.
In the four-year plan, monthly deposits drop to Sh16,000, and as in the other plans, deposits range between Sh200,000 and Sh1 million. Buyers get their homes allocated to them immediately or after a maximum period of 14 months, depending on the payment plan selected. If the model is successful, the firm plans to replicate it in other parts of the country in what may just bring to reality millions of Kenyans’ home ownership dreams.