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Is Kenya ready for mortgage-backed securities ?
Rank: Member Joined: 7/15/2009 Posts: 16
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Kenya’s housing market is ripe for mortgage-backed securities within the next three years, mortgage lender Housing Finance said last week. Frank Ireri, managing director of Housing Finance, Kenya’s second-largest mortgage provider by market share, said mortgage-backed securities are the next funding option for financiers in the housing market, as they seek to satisfy a huge demand fuelled by a strong middle class who are dreaming of building their own houses..... http://www.theeastafrica.../-/2rq85xz/-/index.html
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Herein lies your answer
As long as the initial borrowers are able to keep up with monthly payments, the system works well. But if a large number of homeowners default on their mortgages, a compounded ripple effect spreads through the economy, especially if a large number of high-value bonds have been taken up by investors all through the system.
Kenyans, please start learning from history.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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MBS? Hahaha. I tell U owning a part of the finance house will be more lucrative than owning the actual property going-forward. Well, untill it all goes !! POP !!, but before then...i'll prefer being in it via KCB S&L than HF 
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Nabwire wrote:Herein lies your answer
As long as the initial borrowers are able to keep up with monthly payments, the system works well. But if a large number of homeowners default on their mortgages, a compounded ripple effect spreads through the economy, especially if a large number of high-value bonds have been taken up by investors all through the system.
Kenyans, please start learning from history.
No worries I've studied ur history, both ends of the stick, and I expect to make a fortune like ur smart guys. Then come back for the physical properties during foreclosure. 10cts to the $ hahaha!!
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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As much as I would love to invest knowing full well they will default, it would be too painful to see Kenyans living in tents or homeless, the GFC was built on this concept, only problem is the mouse trap got more mice than it could handle, so the system jammed.
I think that those highrise owners are about to start defaulting, but atleast the mwananchi is protected since they are just renting, but when you set up the actual mwananchi to be the one to default, iko shida.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Cde Monomotapa wrote:No worries I've studied ur history, both ends of the stick, and I expect to make a fortune like ur smart guys. Then come back for the physical properties during foreclosure. 10cts to the $ hahaha!! Thats a fortune that I would not be willing to make, thats heartless!!  ie setting up unsuspecting people to sign mortgages they dont understand. By the way I wonder if the rates will be fixed or not??  Either way the mwananchi is about to be screwed big time.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Nabwire wrote:No worries I've studied ur history, both ends of the stick, and I expect to make a fortune like ur smart guys. Then come back for the physical properties during foreclosure. 10cts to the $ hahaha!! Thats a fortune that I would not be willing to make, thats heartless!! ie setting up unsuspecting people to sign mortgages they dont understand. By the way I wonder if the rates will be fixed or not?? Either way the mwananchi is about to be screwed big time.[/quote] A fool & his money? The properties will be enjoyed by my lineage, I'll die with the remorse or guilt, if any.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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A fool & his money? The properties will be enjoyed by my lineage, I'll die with the remorse or guilt, if any. [/quote] Unaenda straight to hell, hakuna roundabout!! 
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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What Kenya needs is their very own Suze Orman, open up a thread watu wavote, wakinivotia, nitawork day and night to financially enlighten the Wanjikus. Pro is Kenya will be economically stronger, con is no more making money off Wanjiku's back. To those even contemplating signing a mortgage, its advised that you have 6 months worth of income saved up ( this does not include stocks, land etc, just cash that you can access easily). This though is recommended for the US where there is unemployment insurance, disability, food stamps, section 8, low income housing etc etc. Kenya on the other hand does not have a social/economic safety net, be warned that you should have 2-3 years worth of income saved, should you choose to sign on the dotted line.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Nabwire wrote:A fool & his money? The properties will be enjoyed by my lineage, I'll die with the remorse or guilt, if any. Unaenda straight to hell, hakuna roundabout!! [/quote] :-P
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Utanivotia nikuwe Kenya's Suze Orman?
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Nabwire wrote:Utanivotia nikuwe Kenya's Suze Orman? Most def. Miss. Just make sure you kick the can as far as possible, like 10yrs more than the US coz at some point greed will overcome good intentions.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Just make sure you kick the can as far as possible, like 10yrs more than the US coz at some point greed will overcome good intentions. [/quote] Sielewi, nikufe?? Kick the can = die
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Rank: Member Joined: 7/15/2009 Posts: 16
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Cde Monomotapa wrote:MBS? Hahaha. I tell U owning a part of the finance house will be more lucrative than owning the actual property going-forward. Well, untill it all goes !! POP !!, but before then...i'll prefer being in it via KCB S&L than HF @ Cde do you actually foresee the Kenyan house bubble bursting soon (5-10 yrs)? Housing demand continues to outpace supply...
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Nabwire wrote: Just make sure you kick the can as far as possible, like 10yrs more than the US coz at some point greed will overcome good intentions. Sielewi, nikufe?? Kick the can = die [/quote] Sorry. Financially/economically that's lingo for delaying the inevitable for as long as possible, then !! POP !!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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@Nabwire. The extended version is, "kicking the can down the street" (but that's till it rolls into a drain)
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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JBlaze wrote:Cde Monomotapa wrote:MBS? Hahaha. I tell U owning a part of the finance house will be more lucrative than owning the actual property going-forward. Well, untill it all goes !! POP !!, but before then...i'll prefer being in it via KCB S&L than HF @ Cde do you actually foresee the Kenyan house bubble bursting soon (5-10 yrs)? Housing demand continues to outpace supply... My curve is 15-20yrs out. 15 of growth, 5 topping off, then a massive slide thereafter.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Cde Monomotapa wrote:JBlaze wrote:Cde Monomotapa wrote:MBS? Hahaha. I tell U owning a part of the finance house will be more lucrative than owning the actual property going-forward. Well, untill it all goes !! POP !!, but before then...i'll prefer being in it via KCB S&L than HF @ Cde do you actually foresee the Kenyan house bubble bursting soon (5-10 yrs)? Housing demand continues to outpace supply... My curve is 15-20yrs out. 15 of growth, 5 topping off, then a massive slide thereafter. Not good, I think my conscience wont allow this investment. Luckily, I had resolved to buy KCB before this, so niko sawa
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Rank: User Joined: 8/29/2011 Posts: 1,045 Location: Mtaani
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when a guy on wazua starts a thread asking where he/she can buy land for 100k just to get into the action , you know its time to bail out....
Property prices are just heating up when the economy is cooling off.there's a very big disconnect here.
when the property prices do catch up w/the economy this bubble will bust...
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Is Kenya ready for mortgage-backed securities ?
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