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The Housing Bubble in Kenya will Burst very soon....
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bwenyenye
#61 Posted : Friday, March 11, 2011 3:35:30 PM
Rank: Elder

Joined: 5/24/2007
Posts: 1,805
Guys, one of us has identified the real problem in Kenya; infrastructure. Our infrastructure is very limited pushing guys to want to live in particular areas where they can live easily and so will pay a premium for it. The governmemt failed to plan on the expansion of Nairobi leading to areas where people have no amenities. A case in point is Syokimoau. This was once a sisal plantatation but is now a bustling estate. why? coz the govt, graded ( not tarmacked) the road and electricity was intalled. Just that!! It shows you how the demand for an organized place in in Kenya right now. The momment other areas are set up like that , then the options will be more and the prices may stagnate ( not come down) allowing the populace to catch up.

I hope the devolved constitutional power can solve this.
I Think Therefore I Am
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erifloss
#62 Posted : Tuesday, March 22, 2011 8:08:21 AM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
Its truly a bubble...
www.businessdailyafrica....44/-/rdynki/-/index.html
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Muthawamunene
#63 Posted : Tuesday, March 22, 2011 8:44:25 AM
Rank: Member

Joined: 1/3/2011
Posts: 264
Location: Nairobi

I sure hope i wont be in the bubble when it goes pop!!

9 year low
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tony stark
#64 Posted : Tuesday, March 22, 2011 12:38:23 PM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
I want to enquire about council house allotment.
Does the council allocate houses and when allocated/ sold do you get a title or an allotment letter?
Is an allotment letter usable with mortgage firms and banks for loan application? Can a council allotment letter be converted to a title deed that can then be used to get a loan???
Cheers
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For Sport
#65 Posted : Tuesday, March 22, 2011 12:44:59 PM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
I would be reluctant to advice anyone to wait for the much touted bubble to burst before they invest in property.

Are these ‘bubble’ statistics reflected
1. Across the country?
2. In all home ownership segments?

If not, we’re only waiting for a price correction in a few areas. And only after the pirates stop operating.
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For Sport
#66 Posted : Tuesday, March 22, 2011 12:46:49 PM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
Muthawamunene wrote:

I sure hope i wont be in the bubble when it goes pop!!

9 year low


Dont you worry, you wont be. You're not in the US
(your location is Nairobi)
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kiriita
#67 Posted : Tuesday, March 22, 2011 12:51:28 PM
Rank: Member

Joined: 4/20/2008
Posts: 437
tony stark wrote:
I want to enquire about council house allotment.
Does the council allocate houses and when allocated/ sold do you get a title or an allotment letter?
Is an allotment letter usable with mortgage firms and banks for loan application? Can a council allotment letter be converted to a title deed that can then be used to get a loan???
Cheers


@stark,
- Allotment Letters are normally for undeveloped plots so I doubt you'd get one for a house. Indeed one of the conditions on the allotment is that you develop the plot.
- For a house developed by the council [ala Umoja], you'd normally get a lease with a certificate of lease as the title document.
- An allotment letter can not be used as security with a financier.
- An allotment letter can after some lengthy/complex process be 'converted' to a document of title which then can be used to secure financing.
- Take great caution with allotment letters [especially those from councils] - there have been cases of two or more people being issued with them in respect of the same property and such other drama.

Hope that helps.
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tony stark
#68 Posted : Tuesday, March 22, 2011 1:05:08 PM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
kiriita wrote:
tony stark wrote:
I want to enquire about council house allotment.
Does the council allocate houses and when allocated/ sold do you get a title or an allotment letter?
Is an allotment letter usable with mortgage firms and banks for loan application? Can a council allotment letter be converted to a title deed that can then be used to get a loan???
Cheers


@stark,
- Allotment Letters are normally for undeveloped plots so I doubt you'd get one for a house. Indeed one of the conditions on the allotment is that you develop the plot.
- For a house developed by the council [ala Umoja], you'd normally get a lease with a certificate of lease as the title document.
- An allotment letter can not be used as security with a financier.
- An allotment letter can after some lengthy/complex process be 'converted' to a document of title which then can be used to secure financing.
- Take great caution with allotment letters [especially those from councils] - there have been cases of two or more people being issued with them in respect of the same property and such other drama.

Hope that helps.

@ Kiirita thanks alot.
For the umoja house if you get a certificate of lease is it transferable?
Can it be used to secure a mortgage?
Thanks again for the advice.
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erifloss
#69 Posted : Wednesday, March 23, 2011 2:39:46 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
Though its last year's report, its a good read. Make us know what 'foreigner's ' perceive of this real estate market!
http://www.businessinsid...eal-estate-market-2010-1
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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2012
#70 Posted : Wednesday, March 23, 2011 3:01:38 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
This bubble ain't bursting now but it will burst. In my layman prediction I see it happening 5-10yrs from now when the first lot of guys who got mortgages at 18% to buy 8m worth and above apartments in the leafy suburbs of Nairobi hit retirement age and start selling the houses cheaply to repay the banks and make a few shillings on top.

BBI will solve it :)
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  | | Edit by user: Wednesday, March 23, 2011 3:03 PM | Reason: Not specified
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