Get the best building deals

The property industry is fraught with risks from conmen, to processes that would make a veteran weep; but in the midst of chaos, you can get a bargain, writes MKALA MWAGHESHA

The cost of construction materials has been going up steadily over the last ten years, as has land prices. Both form a huge percentage of the final cost of your completed house. An area like Nairobi’s Upper Hill or Kilimani would set you back upwards of Sh200 million per acre.

Imagine buying a piece of land expensively, way above its market value; then you get low quality building materials and an unqualified, but expensive contractor to oversee the construction. All this because you did not research, identify and source to ensure you got the best deals.

When building a house, there are many factors that come into play.

Apart from sourcing for funds to buy land for the construction of a building, money also plays a part in sourcing for materials and personnel to take care of the construction.

This might be easy for seasoned builders and people well versed with the real estate market. For novices, this might be a challenge, as they might incur extra loses, especially if the service providers have a whiff of their susceptibility and lack of knowledge about construction. That is why individuals need to know when and how to get the best deals from the market.

Avoid brokers

Best, in this case a bargain, does not necessarily mean cheaper, but costing less for more and better quality.

According to Janet Kimunya, a farmer and land dealer in Kiambu, dealing with brokers is what most people should avoid. “Brokers are the ones who front deals, but a serious person should avoid them when they want to do business,” she says.

“Meet the owner of the land on offer and request for a copy of the title deed. Do a search at the relevant Land offices to verify the ownership before negotiating the price with the owner,” she adds.

Since the owner is mostly in the background, many people make the mistake of assuming brokers to be the authority figure when doing transactions.

Janet explains that when doing the actual negotiating, not dealing with brokers is the best way to take since they are more conniving than the real owners as they are out to make money from the deal, over and above what the owner asks for.

Televisions splash the https://cdn.standardmedia.co.ke/images and stories of people who have been swindled all the time, especially those involved in quick sale deals. The ‘best’ and quick deals are. most of the time, shrouded in controversy and fraud, with people led to buy into plots that have already been sold to other parties.

Financial institutions play a big part in real estate. Banks, Saccos, mortgage institutions and other financial fronts have different products geared towards helping out a customer with their financial strengths in mind.

Financing

A little research between the financial service providers can give one an idea into what is the best offer for them, in paying the loan or mortgage but at the same time ensuring it does not overburden them.

Abdullahi Dahir, a real estate expert in the construction sector, says that it has now become easier to secure good deals, especially with banks, which have become flexible with giving out financial aid.

“Ten to 15 years back, banks would make it difficult for customers to access loans since they called the shots. The old order does not work today and that is why most products are tailor-made to fit the customer’s preferences,” he explains.

While some offers can appear lucrative, they might have hidden costs and take longer to complete. An offer that does not lead to regret and unease of securing other loans might be the best deal one can secure.

Once a financial plan is secured, the hard work of sourcing for materials starts.

Buy materials close to you

Identify construction materials close to you, and buy them as long as they meet your specifications. Buying materials further away and meeting the transportation cost only adds to your expenses.

Geoffrey Isaiah Onyando, a building and construction expert in Kilifi, says proximity and the location of a construction site to raw materials can also ensure one gets the best deals. Transportation and customisation of raw materials varies across the country.

“Here in Kilifi, there are many low cost materials that are used on residential buildings and low-cost buildings,” he says.

He explains how the availability of building stones and sand has led to providers going a long way to ensure builders get the best, as it would be easier to refer more customers to them.

Buy during low season

In some area, for instance Kilifi, the price of building materials, especially stones and building sand shoot up in the period after the long rains — August to around April.

This is because most constructions take place at this time. During the rainy season, the price lowers. This is the time that smart people source for these materials, with plans to store them in readiness for the construction season.

“The best deals always go hand in hand with quantity,” says Sammy Munuhe, a lorry driver in Juja. He says: “With a bigger lorry, one can take a lot of material, either stones, sand, cement or pebbles, at one go, instead of doing round trips, which are more expensive.”

“Also, taking building materials from the source other than from dealers can be cheaper in the long run, provided the source is not far off,” he adds.

Munuhe says reliable suppliers are the way to go since some providers will opt for the short cut, including not paying relevant authorities for the load carried. “We are always bailing out other drivers and their lorries from the impounds over short cuts,” he adds.

Do your research

In construction, Janet highlights the need for a competent architect who will decide on the materials needed upon coming up with a master plan for the project. After the evaluation from the architect, one is advised to visit as many suppliers as possible for research purposes.

“These things do not require one to be in a hurry. Do a complete research on where you can get the best resources and a reasonable price among those on offer,” she says.

If not conversant with the construction procedures, Janet advises one to find an expert they know and trust to help out.

Track expenses

When it comes to payment, she points out that one needs to be accountable — account for every material as promised for delivery — before paying.

Even in instances where you have fundis on the ground, it is advisable to know what you are paying for, whether it is in terms of labour or materials. The same applies to finishing and furnishing.