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Daily Nation : February 20th 2014
2 inthenews 1,500 units for Stima Sacco STIMA SACCO is set to construct 1,500 housing units for its members on its 100-acre piece of land in Kasarani, near Kiriri University. The project is expected to cost Sh4 billion, with the sacco currently seeking a financier to add to members’ contributions. Deposit placements will commence August this year and the units are expected to be ready by August 2017. Mortgage financing for the members will be provided by the sacco at a fixed rate. Banks’ mortgage rates, which are variable, have averaged 15 per cent in the last few months and the members are likely to get a discount on this. The Sacco has a membership of 14,267 and is ranked fifth largest in the country. BY ALLAN OLINGO firstname.lastname@example.org of management and acquisition. It also helps unravel the mysteries surrounding actual property ownership and the forms of ownership. Collins Otieno, a valuer with a F leading local bank, says valuation experts are important to home owners because they are in a position to advise whether there are grey areas in respect to property ownership since they are trained, for instance, to scrutinise the types and different natures of title deeds. “Valuers are trained to check the information in relation to the title of the property. They will advise the client on issues to do with mutation of forms, adjacent property values and also the basics that deal with registry locations and survey maps,” he says. Otieno is of the opinion that, with the current trend where everyone wants to own a piece of the earth, many run the risk of buying plots that are overpriced, and that it is only through valuation that the prospective owners can understand the capital appreciations of these assets. “Through valuation, one will be able to understand if the land or property that they have is worth the investment. It also helps people take loans from banks as the banks will want a security against the amount borrowed,” he says. Philip Kimasi, a valuer, agrees, saying that valuation is the only way through which one can give unchallenged property value to other interested parties such as banks, insurance companies, mortgage institutions, potential buyers or prospective purchasers, or to challenge compensation in the event the property is compulsorily acquired by the government. “When you get to see the final valuation report, you will see how detailed it is. The report, while containing details of the property and comparisons of it with other similar properties, goes beyond that to compile a report on property trends within the area, the determinants of price and what the valuer believes might, in one way or the other, lower the property’s value,” he says. The report also outlines the type of property, the sale value within a time frame, and the likely appreciation in value in due course. In Kenya, the Valuer’s Registration or many, property valuation has never been anything to bother about, yet it forms a critical element in the processes Board provides the valuers’ scale of fees, which is outlined in the Valuers Act (Cap 532), legal notice number 92. “When you deal with a valuer,” says Kimasi, “he or she must stick to these fees, and in cases where you feel they have engaged in professional misconduct, you can seek remedy through the Institute of Surveyors of Kenya.” There is also the Valuers Registration Board, which also regulates the practice of valuers within the country. Based at the Ministry of lands, the board issues the practising certificate of the valuers, which is renewed annually. WHY YOU MAY WISH YOU HAD A VALUATION REPORT According to Charles Peter, CEO of Rubyland Limited — a firm of registered valuers and real estate consultants — the following are five compelling reasons why, as a property owner, you need to have a property valuation report with you and how the same can help you seize life-changing opportunities: you inherited that land or bought it for Sh10,000 10 years ago does not mean it is worth that much today. Properties appreciate in value over time and several factors contribute to this. Why not carry out a valuation and have an idea how much that property you inherited from your grandparents is worth? It will enhance your credit worthiness and could also be the source of security to expand your business, or even venture into a new one. 1 piece of property is an investment that should give you returns, and only people who are well informed regarding the value of their properties would be able to tell the return on investment they would expect when an opportunity arises. Are you sure the rentals you are charging on your properties are a reflection of the market rates? Does your property present a sound investment avenue? What about insurance? Is your property adequately covered against associated risks? Valuation will help safeguard your property as an investment. 2 It will help you safeguard your property investment: There is more to a property than a sense of ownership. Any It gives you an idea of how much you are worth: You’ve been playing in the league of poor millionaires. The fact that Coming up in the CBD: Kenya’s tallest building CONSTRUCTION of Kenya’s tallest building has resumed after it was stopped several months ago. The 39-storey Hazina Trade Centre, owned by the National Social Security Fund, has been dogged by controversy that forced Labour Cabinet Secretary Kazungu Kambi to halt it, alongside other NSSF projects said to have had dodgy tendering. A few weeks later, City Hall also said that NSSF had to seek fresh approvals from the National Environmental Authority, provide safety assurances for current users as well as provide a traffic management plan. The construction is being undertaken by China Jiangxi at a cost of Sh7.1 billion. It will involve adding 31 floors to the eight existing ones in the building that houses Nakumatt Lifestyle. A few months ago, NSSF also placed an international joint venture tender for the construction of a 62-storey tower on its plot on Kenyatta Avenue, Nairobi, estimated to cost Sh20 billion. A new stadium THE NANDI county government is set to build a new stadium that will accommodate 30,000 people at a cost of Sh500 million. Tenders for the project are expected to be opened this week, with construction set to commence in March. The new stadium will replace the dilapidated one built in 1948. The area has produced some of the leading athletes in the country and the county government says the new stadium will befit this stature. DN coverstory DAILY NATION Thursday February 20, 2014 MONEYMAKERS Do not let your property idle away, value it and turn it into a cash cow Sitting on a goldmine: A lot of people do not realise it, but that piece of land that has been lying idle for years could make you the newest millionaire in town. And it does not matter whether you have the money or not, for investors are walking around with fat cheques looking for candidates for joint ventures. But before you can start reaping big, get out and look for a valuer... GROUP EDITORIAL DIRECTOR: Joseph Odindo GROUP MANAGING EDITOR: Mutuma Mathiu FEATURES EDITOR: Bernard Mwinzi REVISE EDITOR: Mary Wasike SUB-EDITOR: Naliaka Wafula PHOTO EDITOR: Joan Pereruan CHIEF GRAPHIC DESIGNER: Roger Mogusu DESIGNERS: Nzisa Mulli, Andrew Anini, Dennis Makori, Alice Othieno, Michael Mosota, Ken Kusimba, Hassan Ibrahim, Benjamin Situma, Joy Abisagi, Virginia Borura, Teddy Murimi, Linus Ombette REPORTER: Joy Wanja COVER & GRAPHIC CONCEPT: Hassan Ibrahim is published every week by Nation Media Group Limited. It is distributed free with every Daily Nation. Unsolicited manuscripts, artwork, transparencies are submitted at the sender’s risk. While every care will be taken on receipt of such material, the Nation Media Group Limited cannot accept responsibility for accidental loss or damage. ©Nation Media Group Limited, 2009. All rights reserved.
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