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A block of flats for sale in kasarani
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african coloner
#1 Posted : Monday, October 10, 2011 6:03:42 PM
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Joined: 10/8/2010
Posts: 446
Location: london
There is block of flats for sale in kasarani in fully deveoped area, total income is 120k and price is 21m or onvo. all documents are ready, if interested hit back or leave details and will get back to you
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mlennyma
#2 Posted : Monday, October 10, 2011 9:20:20 PM
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Joined: 7/21/2010
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Location: nairobi
If i had 21m i would not tie it for 120k monthly return,i have better ways to make atleast 500k with 21m monthly.
"Don't let the fear of losing be greater than the excitement of winning."
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hisah
#3 Posted : Tuesday, October 11, 2011 7:30:25 AM
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Joined: 8/4/2010
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mlennyma wrote:
If i had 21m i would not tie it for 120k monthly return,i have better ways to make atleast 500k with 21m monthly.

True. Some interesting math here, a 91 day t-bill @14.8% does pay more than 120k per month at the moment... Why hussle to buy the flat? At 21M with the current rental yield would take more than a decade to breakeven...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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sanity
#4 Posted : Tuesday, October 11, 2011 2:14:14 PM
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Joined: 1/24/2011
Posts: 407
Location: Nairobi,Kenya
hisah wrote:
mlennyma wrote:
If i had 21m i would not tie it for 120k monthly return,i have better ways to make atleast 500k with 21m monthly.

True. Some interesting math here, a 91 day t-bill @14.8% does pay more than 120k per month at the moment... Why hussle to buy the flat? At 21M with the current rental yield would take more than a decade to breakeven...


@hisah,tafadhali nifafanulie hi mambo ya Tbill in simple language...
Hope is not a strategy
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Thermostatic Investor
#5 Posted : Tuesday, October 11, 2011 2:21:50 PM
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Joined: 8/18/2011
Posts: 44
Even at 7% return from a Money Market Fund yields a better monthly return - not forgetting there are no operational costs!
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trizher
#6 Posted : Tuesday, October 11, 2011 2:33:40 PM
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Joined: 5/23/2010
Posts: 95
Location: Tikrit - IRAQ
sanity wrote:
hisah wrote:
mlennyma wrote:
If i had 21m i would not tie it for 120k monthly return,i have better ways to make atleast 500k with 21m monthly.

True. Some interesting math here, a 91 day t-bill @14.8% does pay more than 120k per month at the moment... Why hussle to buy the flat? At 21M with the current rental yield would take more than a decade to breakeven...


@hisah,tafadhali nifafanulie hi mambo ya Tbill in simple language...


Me too Senor' @hisah
...We do it for the $$$$!!
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hisah
#7 Posted : Tuesday, October 11, 2011 3:48:28 PM
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Joined: 8/4/2010
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Thermostatic Investor wrote:
Even at 7% return from a Money Market Fund yields a better monthly return - not forgetting there are no operational costs!


There is a lot of info on the CBK website.
Opening a CBK CDS account - http://www.centralbank.g...rities/cdsaccounts.aspx

All about T-Bills - http://www.centralbank.g...bills/Introduction.aspx

Checking T-Bill auction results - http://www.centralbank.g...ills/manualresults.aspx


$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Gathige
#8 Posted : Tuesday, October 11, 2011 4:46:19 PM
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Joined: 3/29/2011
Posts: 2,242
african coloner wrote:
There is block of flats for sale in kasarani in fully deveoped area, total income is 120k and price is 21m or onvo. all documents are ready, if interested hit back or leave details and will get back to you



Assuming a 75% occupancy rate,the return is a paltry 5% before the operational costs. It would take ages to recover the initial investment even after considering value of property appreciating.

"Things that matter most must never be at the mercy of things that matter least." Goethe
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wanyuru
#9 Posted : Tuesday, October 11, 2011 4:50:00 PM
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Joined: 11/29/2007
Posts: 948
hisah wrote:
Thermostatic Investor wrote:
Even at 7% return from a Money Market Fund yields a better monthly return - not forgetting there are no operational costs!


There is a lot of info on the CBK website.
Opening a CBK CDS account - http://www.centralbank.g...rities/cdsaccounts.aspx

All about T-Bills - http://www.centralbank.g...bills/Introduction.aspx

Checking T-Bill auction results - http://www.centralbank.g...ills/manualresults.aspx




The current Infrastructure bond offer would also yield much higher returns and an attractive redemption schedule....20M would give a discount of Kes 3.3mn and coupon of 200k every month....how much will that have earned you in four years?...net interest income of 9.6 mioDrool
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hisah
#10 Posted : Tuesday, October 11, 2011 6:15:31 PM
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Joined: 8/4/2010
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@wanyuru - yes the infra bond has attractive returns. But I have a phobia of trusting the current central planners with my money for more than a year...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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bartum
#11 Posted : Tuesday, October 11, 2011 8:10:09 PM
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@wanyuru how did you get the 200k per month, 3.3m per year and 9.6mio per year. Iam waiting for the answer
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wanyuru
#12 Posted : Wednesday, October 12, 2011 8:28:11 AM
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Joined: 11/29/2007
Posts: 948
bartum wrote:
@wanyuru how did you get the 200k per month, 3.3m per year and 9.6mio per year. Iam waiting for the answer


The bond is being sold at a discounted price of 83.353 for every 100....do the math.

Interest income: 12% of 20mn per year=2.4mn thats 200k per month, right?

read my post again...i said 9.6mio in four yearssmile
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jaggernaut
#13 Posted : Wednesday, October 12, 2011 8:56:25 AM
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Joined: 10/9/2008
Posts: 5,389
Does this also mean that it doesn't make any economic sense to buy a house in Runda or Karen at Ksh 45 million (as they are currently being sold) and rent out the property at 250k a month (current rent)?
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bartum
#14 Posted : Wednesday, October 12, 2011 11:25:42 AM
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Location: nairobi
@wanyuru thanks a million. Now during good economic times like early 2007,what is the value of the discounted price for every 100.
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Gathige
#15 Posted : Wednesday, October 12, 2011 12:54:29 PM
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Joined: 3/29/2011
Posts: 2,242
jaggernaut wrote:
Does this also mean that it doesn't make any economic sense to buy a house in Runda or Karen at Ksh 45 million (as they are currently being sold) and rent out the property at 250k a month (current rent)?



@ Jaggernaut,

It all depends of many factors. If you borrow the 45M and invested in such a property to rent, the cost of money ( read interest) would be higher that the returns, of course excluding future value appreciation. Such properties are ideal to buy and live in them as part of self-actualization!

"Things that matter most must never be at the mercy of things that matter least." Goethe
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chemos
#16 Posted : Wednesday, October 12, 2011 1:32:14 PM
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Joined: 11/28/2006
Posts: 1,799
Gathige wrote:
jaggernaut wrote:
Does this also mean that it doesn't make any economic sense to buy a house in Runda or Karen at Ksh 45 million (as they are currently being sold) and rent out the property at 250k a month (current rent)?



@ Jaggernaut,

It all depends of many factors. If you borrow the 45M and invested in such a property to rent, the cost of money ( read interest) would be higher that the returns, of course excluding future value appreciation. Such properties are ideal to buy and live in them as part of self-actualization!



Applause Applause i see no other reason why people buy such houses
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african coloner
#17 Posted : Wednesday, October 12, 2011 2:46:12 PM
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Joined: 10/8/2010
Posts: 446
Location: london
bartum wrote:
@wanyuru thanks a million. Now during good economic times like early 2007,what is the value of the discounted price for every 100.


the house got alot of potential to even double
the rent
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