THE INVESTMENT CASE
Some buyers may wish to buy a home and then reside permanently within Pazuri Vipingo to enjoy the fresh air, spare and tranquility with fantastic ocean views and wonderful amenities nearby. For buyers who wish to make investment returns on their house purchase, we would anticipate the following initial scenario for investment returns.
Two bedroom bungalow
Purchase price Kshs 12,000,000
Place the house in the rental pool for 10 months each year
Kshs 5,000 nett for each room per night
60% utilisation of rooms sold via the rental pool
= annual income of Kshs 1,825,000
= 15.2% annual return on investment
Rental income will come from two main sources, Vipingo Ridge and Bonfire Adventures. Vipingo Ridge has only limited accommodation to service their events and conferences market and we have entered into an arrangement where we shall offer serviced accommodation to enable the marketing of Vipingo Ridge events to larger groups.
We have also entered into a partnership with Bonfire Adventures, Kenya’s leading travel agency of 2018. Bonfire Adventures will market competitively priced package holidays to Pazuri Vipingo by air, SGR and overland and a huge demand from the domestic tourist market is anticipated.
Pazuri Vipingo will manage the letting of the houses in the rental pool and arrange all linen changes and cleaning. Houses in the rental pool will be rotated so that each owner enjoys a fair proportion of rental income which will be paid to home owners’ accounts at the end of each month.