It is flawed to compare rent with mortgage installments which are part principal, part interest. The interest is an expense comparable to rent, the principle is a locked in investment comparable to a savings account balance or money in your CDS. You can get this investment back in cash by refinancing or sale of the property... interest and rent are gone forever... The difference (btwn mortgage & CDS) is the underlying asset which in this case is real estate not stock. You should get capital gain and income (rent payable from u to u). Things to consider 1. Price vs. value of property now and in future (u make money when u buy as in stocks) 2. Cost of debt vs. investment returns 3. Other investment alternatives {better yields / lower risk / shorter payback etc.} Consider the random numbers below which I have not put much thought into. 2011 rent 50k mortgage 110k bread 40 fuel 120 2013 rent 65k mortgage 110k bread 65 fuel 170 2018 rent 90k mortgage 110k bread 120?? fuel 300?? 2025 rent 150k mortgage 110k bread 200?? fuel XXXX??

Its a mistake to compare mortgage payments with rent because rent can only go one way while mortgage payments can rise and fall.

What "current propery market situation"? Do not over-analyse. Lemme give u an example, I got a mortgage for 6.25m for a 3bed flat. I have paid up less than 300k and with 18+ yrs to go. Now market price is at around 10m if I can sell with patience... force sell at least 8.5m... this is after 17 months... (2.25/6.25)*(12/17) = 25% return or 42% if you work with 10m. Rent was around 35k, now its 45k... which is a 6% dividend... My plan is to eventually buy land and construct when i have a family. By then i will have the OPTION to sell it and pay off the mortgage and pocket the change (5m plus i hope) OR rent out the flat and let someone else pay the remaining 15yrs of my mortgage ... by then rent will be higher than installments. Trust me i will make a good decision... based of course on the then "current propery market situation".

I might not buy a single unit with the intent to rent long term. If i got a good deal (low price) and i had the money (which i dont) i might buy, rent and sell maybe in a year or 2 if i could get another good deal (high price). If i had enough money i would rather buy a plot maybe embakasi and build flats. 2bdr, 1bdr, bedsitters... About waiting for rent 2 rise, my assumption is that rent will rise more or less in line with property prices (or vice versa, I'm not sure which of the 2 is the chicken / egg ie. which determines the other). So... if u wait for reasonable rents... u are also waiting for higher prices.

I like!