KUM REAL ESTATE AND ACCOMMODATION FOR COLONIES
When it comes to investing, one has endless ways. One of the best investment options to consider is investing in property. Investing in a real estate property comes with numerous advantages that set it apart from other types of investments, but it is very difficult for billions of individuals to own their own properties to call home. KUM will assist Super and Mega KUM Colonies to purchase or build houses for their members, also guide the KUM Colony to invest in commercial and residential properties. Below are some of the benefits for investing in properties:
REAL ESTATE BENEFITS
Let’s understand this with two cases.
Case 1 – Let’s assume that one rents a 3–4-bedroom home and pays rent of R13,000 per month. This is way below the actual rental values in cities and other residential suburbs. And, let’s assume the average house rental value increases at 5% per annum. Again, this is way lower than norms.
Case 2 – Let’s assume that one buys a ready-to-move 3–4-bedroom home for a cost of R1,200,000. You take a home loan for twenty years.
Here’s a look at the figures in both cases. Numbers Don’t Lie.
| Case 1 – Rental Home | |
| Expenses | Calculation |
| Rent per month | R13,000 |
| Rent appreciation PA | 5% |
| Total Rent Amount paid after 20 years | R3,276,000 |
| Asset Value after 20 years | 0 |
| Case 2 – Own Home | |
| Expenses | Calculation |
| Loan amount | R1,200,000.00 |
| Tenure of the loan | 20 years |
| Interest rate | 10.88% |
| EMI during the tenure | R12,183.00 |
| Total amount paid after 20 years | R2,923,920.00 |
| Asset Value after 20 Years at 10% appreciation Per Annum | R3,600,000.00 |
As you can see, in this example, when you take a house on rent, you end up paying almost the same cost as owning a house. However, when you buy a home, you are building an asset that increases your wealth. Today many civil servants working in government departments, teachers, nurses, police, soldiers and other essential service providers cannot afford to buy their own property in some countries. With KUM Colony, all civil servants working in government departments, teachers, nurses, police, soldiers and other essential service providers will be able to buy or build their own properties.
Freedom
While staying in a rented apartment the individual or the family has to follow certain regulations set by the landlord such as drilling holes, no renovations, repairs are story to be told, no home improvements, and the list is endless. However, purchasing a house gives them the liberty to live the life they want without the restrictions of the landlord.
Hedge against Inflation
The unexpected inflation rise in the economy can affect the cost of living for families/ individuals including the rise in the investment property prices. Due to inflation, the property investors can raise the amount they charge for rent, which becomes an additional burden for the tenants. The value of investment properties goes up to cover the rise in inflation.
On being the owner of a house, the mortgage payment does not get affected by inflation since it is pre-decided at the time of agreement with the bank, i.e. the absolute value of the property decreases with inflation. This is a blessing in disguise for the owners that they don’t have to be beer the additional cost of paying the additional rent. Therefore, purchasing a property can provide you with an additional property investment security during inflation. With KUM Colony participation, members will finish paying for their houses within 10-years or less.
REAL ESTATE STATISTICS
We will invest in real estate and accommodation services. TO START OR JOIN A KUM COLONY - CLICK HERE
ACCOMMODATION SERVICES
Global Travel Accommodation Market Size, Share, Global Trends, Forecast to 2030
Facts & Factors estimates that the global travel accommodation market was worth USD 646 billion in 2021 and would grow to USD 1161 billion by 2030 with a compound annual growth rate (CAGR) of 12.59%.
Travellers spend a lot on lodging, thus the sector relies on it. The travel accommodation unit chosen depends on the duration of stay, but it remains a priority for all guests, including regular travellers and professionals. Visitors consider several things before booking a hotel. Comfort is the most important factor. Hotels and guesthouses usually take longer than travelling.
Industry Growth Factor
Lifestyle changes will improve global travel accommodation. Polls and research show many have changed their lifestyles after the outbreak. Travelling to learn or relax is expected to boost the global market. KUM Colonies will invest guesthouses and sell catering apartments for accommodation services. The KILOBU Unified Marketplace will assist their KUM Colonies tap into this market and share the marketplace with others.
TO START OR JOIN A KUM COLONY - CLICK HERE