Payment plan
Offer Prices (cash only)
3 Bed – Kes. 10,000,000 4 Bed – Kes. 10,750,000
Normal Prices
3 Bed – Kes. 10,250,000
4 Bed – Kes. 11,000,000
Tenancy Purchase or Rent to Own (Up to 20 years)
3 Bed – Kes. 10,500,000
4 Bed – Kes. 11,250,000
RENT TO OWN PAYMENT PLAN FOR A KENPIPE GARDENS 3 BEDROOM HOUSE:
- Total Purchase Price (3 Bed Unit) 10,500,000.00
- Deposit 10% – 1,050,000.00
- 10% deposit is the minimum acceptable Bal. on TPS – 9,450,000.00 Interest Rate 12% No. Months (Max) 240 Maximum of 240 months
- Monthly Repayment KES 104,052.64
- The Buyer is free to make increased repayments.
- Registration Cost & Certificate of Lease KES 1,000.00 Management Co. Set Up & Purchase of 1 Share KES 2,000.00 Reversionary Interest Purchase Costs KES 1,000.00 Service Charge Security Deposit (3 Months) KES 21,000.00 Advance Service Charge (3 Months) KES 21,000.00 Legal Fees KES 116,000.00 Inclusive of VAT
- TPS Insurance* KES 37,800.00
- Mandatory requirement subject to balance outstanding (annually and reduces as installments are paid)
- Stamp Duty 4%
- Current Statutory requirement payable on completion of purchase. Government will from time to time review this charge.
- Total Initial Payment 1,353,852.64 *To be advised by insurance broker.
RENT TO OWN PAYMENT PLAN FOR A KENPIPE GARDENS 4 BEDROOM HOUSE:
- Total Purchase Price 11,250,000.00
- Deposit 10%- 1,125,000.00 10% deposit is the minimum acceptable Bal. on TPS – 10,125,000.00 Interest Rate 12% No. Months (Max) 240 Maximum of 240 months
- Monthly Repayment KES 111,484.97
- The Buyer is free to make increased repayments. Registration Cost & Certificate of Lease KES 1,000.00 Management Co. Set Up & Purchase of 1 Share KES 2,000.00 Reversionary Interest Purchase Costs KES 1,000.00 Service Charge Security Deposit (3 Months) KES 21,000.00 Advance Service Charge (3 Months) KES 21,000.00 Legal Fees KES 116,000.00 Inclusive of VAT
- TPS Insurance* KES 40,500.00
- Mandatory requirement subject to balance outstanding (annually and reduces as installments are paid)
- Stamp Duty 4%
- Current Statutory requirement payable on completion of purchase. Government will from time to time review this charge.
- Total Initial Payment 1,438,984.97 *To be advised by insurance broker
A tenant purchase scheme is an option for a property investor to acquire property by making installment payments over an extended duration of time, while getting to enjoy occupation of the property as soon as the initial deposit is paid.
Tenant purchase scheme is an alternative payment method for property acquisition whereby the home buyer makes a down payment and is able to access the facility before fully paying for it within an extended period of time.
Tenant purchase schemes have historically been the preserve of government agencies such as HF Group, the National Social Security Fund (NSSF) and the National Housing Corporation (NHC). The models used by these institutions tend to favour salaried individuals, mostly civil servants.
Tenant purchase schemes are not commonly adopted by many private developers due to the reality of deferred receivables, compared to cash or bank-financed sales.
Most developers in the market tend to shy away from the model as it ties down their cash flow.
Tenant purchase scheme widens the scope of home ownership by making the payment process flexible, easier and accommodates more prospective home buyers.
4 things to look out for in a tenant purchase agreement:
1. Work out the cost of the unit under tenant-purchase agreement in terms of the interest and then look at its cost under a mortgage facility and see what favours you most. In most cases, tenant-purchase is more affordable, unlike a mortgage or accessing a home through a bank loan.
2. Scrutinise the contracting process to check the duration of payment. The longer the better for the tenant as it means lower monthly repayments.
3. Take note of related transactions like legal and administrative costs, including any payable taxes. These further push up the cost of the house as they are payable upfront. The stamp duty that is payable is relatively lower today rather than in future, as the value of the house goes up after acquisition.
4. Full ownership of the house under tenant purchase scheme is only acquired after the full payment of the total cost of the house. It is only after this that one can use the house as collateral for credit.
Tenant purchase versus mortgage
• The requirements in a tenant-purchase scheme are not as stringent and as detailed as those in a mortgage.
• The homebuyer in a tenant-purchase enjoys a grace period, the period between payment of the deposit and when the house is ready for occupancy. There is yet another grace period between receiving the letter of occupation and starting to pay the monthly instalments. Normally, one is given about a month before interest starts accruing.
• The approval process for tenant-purchase is simpler and faster.
• The cost of borrowing under tenant purchase scheme is lower than a mortgage and is on a reducing balance.
• Should you default a tenant-purchase, the foreclosure deadlines are flexible, with several warning letters coming before a public advert with a notice period. This is unlike a mortgage where demand letters are immediately followed by litigation.
• Under tenant-purchase, one can easily sell off the house because getting the developer’s consent and change of records is faster. With a mortgage, the process is tedious and takes longer due to various consents and ‘discharge of charge’ against titles.
Despite getting to enjoy almost immediate possession of a property, the tenant purchaser should be aware that title to the property will only pass once the price is paid in full. One disadvantage of this is that the purchaser will not be able to use the title as collateral to access bank facilities. Transferring the property mid-purchase may also prove cumbersome as the tenant purchase agreement may restrict assignments or introduce consent conditions from the developer. Nevertheless these challenges are not as stringent as those for mortgage transfers which require the stamping and registration of a formal discharge instrument.
Potential tenant purchasers should also be aware that some administrative costs are likely to be higher on the actual completion date. For instance stamp duty which is pegged on market value of the property is likely to be higher as the value of the property appreciates during the repayment period for the scheme.
Further, it is quite vital that would-be tenant purchasers identify schemes run by viable institutions like with demonstrated development history and longevity in the built environment, since pursuing title issuance at the end of an extended payment duration may prove challenging if dealing with a here today-gone-tomorrow kind of entity, as some frustrated Simple Homes investors may attest to.
The Kenya Pipeline Company Retirement Benefits Scheme (KPCRBS) has developed fully detached 3-bedroom and 4-bedroom units in Kitengela called Kenpipe Gardens for sale. They are located off Namanga Road approximately 2 kilometers from the main road near Kitengela International School, Thorn Grove Academy and Orchard School.
Kenya Pipeline Company Retirements Benefit Scheme is a single employer corporate pension based in Nairobi, Kenya. It was established in 1977 to provide cash benefit and pensions for permanent and pensionable employees of Kenya Pipeline Company upon retirement as well as a relief for the dependents of the deceased employees. The assets of the pension including Kenpipe Gardens are managed by the Board of Trustees.
The main purpose of Kenya Pipeline Company Retirements Benefit Scheme is to provide cash benefit and pensions for permanent and pensionable employees of Kenya Pipeline Company upon retirement as well as a relief for the dependents of the deceased employees.
Kenpipe Gardens rent to own is available in our tenancy purchase scheme with a maximum of 20 years repayment instalment period. If you pay a minimum of 10% deposit within 7-14 days, you are allowed too to occupy your Kenpipe Garden’s house as you continue to pay your monthly instalments over a maximum of 20 years.
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