Kenyans Buying Centum Apartments to Get Cheap Loans from Barclays Bank
Kenyans seeking to buy apartments from Centum Investment are set to get affordable loans from Barclays Bank of Kenya.
This comes after Barclays Bank signed an agreement with the real estate arm of Centum Investment to finance buyers of homes that being developed in Nairobi and Kilifi at discount interest rates, according to Business Daily.
Centum Real Estate managing director Samuel Kariuki said the loans will be priced at a range of 11.5 percent to 11.9 percent, a discount of up to 1.5 percentage points compared to the current maximum lending rate of 13 percent by commercial banks.
The lender will fully fund homes whose value is below Sh10 million and provide 90 percent financing for units priced above Sh10 million.
“The signing of this (agreement) with Barclays signals our commitment to ensuring that Kenyans have an opportunity to own a home in a master-planned city that integrates world-class infrastructure and recreational amenities which seamlessly blend a live, work and play lifestyle,” Kariuki told Business Daily.
David Hardisty, the director of retail and business banking at Barclays said the agreement is part of the bank’s plan to expand its housing loans portfolio.
“Barclays has been playing in the mortgage space for many years offering some of the longest-tenured mortgages on the market of up to 25 years and will continue expanding its products and services in this area,” Hardisty said.
The funding agreement covers housing units in Centum’s Palm Ridge Estate and Awali Estate in Kilifi County, as well as The Riverbank Apartments and Cascadia Apartments in Nairobi.
Centum is constructing 1,255 one, two and three-bedroomed houses at Palm Ridge retailing at between Sh2.5 million and Sh4.6 million.
The Riverbank project consists of 168 one, two and three-bedroomed units whose prices range from Sh16 million to Sh30 million.
On the other hand, Cascadia Apartments feature 400 one, two and three-bedroomed houses retailing at between Sh8.5 million and Sh23 million.
Comments (12)
For those willing to invest , this is a good opportunity to take. On my end I decided to invest Where I work and raise my family due to the fact l am not expecting my two teenagers to ever live in Kenya hence Why waste my resources to benefit others While my kids Inherit non. That's just my opinion and my 5 minutes.
I agree, Many invest at home yet it's not beneficial to their offspring
Precisely, I have been saying this for ages despite our inheritor in chief Mhalisi screaming hoarse for us to invest in Kenya. You can be a millionaire anywhere and yes my children comes first - invest where they live , if I have change left Kenya comes second
12% interest??
My thoughts exactly. Mortgages in KE are expensive compared to the US. At that rate the repayment amount will be more than twice the original amount!
Thats what I was thinking. If you are in the US it seems cheaper to get an home equity loan @ 3.99%, get the home built, rent it out using the proceeds to pay back the loan and save a literal ton(tonne) of money by doubling up the payment
@Kiura am with you on this. I can pay off my mortgage instead and live a worry free life that invest where we will never live.
Better invest where you love
Thought chief investor in Kenya Mr. Mhalisi would have thrown his wise words😲.
He is probably busy working on his kaploti. Besides these are apartment dwellings and not kaplotis so....
wait until you are old n in diaper and lonely in diaspora ,u are only in diaspora to make money n return home n be making frequent trips between kenya and usa for vacation ati invest where u kids are they will be so quick to put u in retirement home keep the thinking
Maskanot you hit the nail on the head. They will be in diapers in a nursing home enjoying the services of CNA that's when reality will hit them but it will be too late.