If you have Ksh20 million in Kenya,will you build mabati houses or an apartment?Well,based on calculations, Abati houses are more profitable than apartment. With Ksh20m,you will build single rooms and mabati houses that will generate Ksh 200,000 per month. With the same amount, you will build one floor of an apartment that generates Ksh 120,000 per month. This is the reason some rich people in Kenya opt to buy land in slums and build those low-cost houses. Within 5 years, they have recovered their capital.
If you are aged 50 years and build Ksh100m house, it will take you 15 years to recover your capital. This means that you will start making profits from age 65. If you have Ksh5m and build single rooms ,you will recover your capital within 4 to 5 years.
