Rank: Elder Joined: 2/23/2009 Posts: 1,626
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Location Location Location!!! The first law of real estate investment.It's about where you buy.How do you go about choosing where you buy and why? Uncertainty is certain.Let go
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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Yes..there are several indicators the first one being buy the most expensive property you can afford!
the most important indicator i have discovered however is that the neighborhood is very crucial..choose a location in which has high income residents (you will know this just by looking at the quality of housing,or by the rate of monthly rental rates)
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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How does buying the most expensive property you can afford help in the investment choice especially if your buying into a bubble? Aren't high income residents likely to be fellow real estate investors? What factors do consider when checking for quality? Uncertainty is certain.Let go
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Rank: Member Joined: 3/12/2011 Posts: 108
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ChessMaster wrote:Location Location Location!!! The first law of real estate investment.It's about where you buy.How do you go about choosing where you buy and why? What you want to do with the land dictates where to buy. For example, if you want to use the land for an industry, then you buy where there is infrastructure for industries and zoning allows for industries e.g., Kariobangi light industries, EPZ zone etc.
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Rank: New-farer Joined: 9/6/2010 Posts: 97 Location: nairobi, kenya
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Ask yourself what you are going to do with the land: do you want to build to sale, build to let, build a home, just wait on the land to sell it off etc. Each specific use will have its own parameters to consider before coming up with a fair value. And you shouldn't be buying in a bubble, otherwise Kaifastus is right in the sense that when you buy the most expensive you can afford, the value increase over the years is greater than the extra amount you had to fork out initially. Before you can be be old and wise, you must first be young and stupid.
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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If someone had 50m, what's the best option?
a) buy a house in runda @50m and rent out at 200k pm
b) buy 3 apartments in kileleshwa each 16m and 80k rent, total 240k pm
c) put up 2 blocks of flats in kitengela, kasarani, ruaka etc each with 25 units, total no. of units 50, rent @15k thus total rent 750k pm?
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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Basically function/intent should be the driving force in the investment choice. Good. Lets say it serves as purely and investment vehicle where you acquire for capital gains or income. If you're buying to sell,who are you selling to and what's driving them to buy? If its for income, what are your strategies for dealing with competition? Uncertainty is certain.Let go
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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jaggernaut wrote:If someone had 50m, what's the best option?
a) buy a house in runda @50m and rent out at 200k pm
b) buy 3 apartments in kileleshwa each 16m and 80k rent, total 240k pm
c) put up 2 blocks of flats in kitengela, kasarani, ruaka etc each with 25 units, total no. of units 50, rent @15k thus total rent 750k pm?
My two cents: a. Your asset is more illiquid. Few developers but even fewer clients for the houses. More focused,all your money is dependent on satisfying one client.Good when they are loyal bad when they are not. b. Still illiquid and risky. Your investing all the money in the same location which serve a similar market.All 3 apartments will be affected by changes that develop in the market. c.It's viable but is more accessible by more developers so eventually all the profits will be eroded because of high competition and increased asset prices both affecting the profitability of your investment. Uncertainty is certain.Let go
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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jaggernaut wrote:If someone had 50m, what's the best option?
a) buy a house in runda @50m and rent out at 200k pm
b) buy 3 apartments in kileleshwa each 16m and 80k rent, total 240k pm
c) put up 2 blocks of flats in kitengela, kasarani, ruaka etc each with 25 units, total no. of units 50, rent @15k thus total rent 750k pm?
Or d) buy stocks that yield 10% dividend, that would be 5m in dividends per Yr or about 420k per month, in addition to capital gains.
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Rank: Member Joined: 2/18/2011 Posts: 448
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jaggernaut wrote:If someone had 50m, what's the best option?
a) buy a house in runda @50m and rent out at 200k pm
b) buy 3 apartments in kileleshwa each 16m and 80k rent, total 240k pm
c) put up 2 blocks of flats in kitengela, kasarani, ruaka etc each with 25 units, total no. of units 50, rent @15k thus total rent 750k pm?
my choice would be www.tofinarom.com .buy and sell real estate till you reach a level you have desired number of stock and real estate
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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ChessMaster wrote:Basically function/intent should be the driving force in the investment choice. Good. Lets say it serves as purely and investment vehicle where you acquire for capital gains or income. If you're buying to sell,who are you selling to and what's driving them to buy? If its for income, what are your strategies for dealing with competition? Ditto. The WHY comes before the WHAT which determines the WHERE. This not only in Real estate but in all aspects of life.
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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jaggernaut wrote:jaggernaut wrote:If someone had 50m, what's the best option?
a) buy a house in runda @50m and rent out at 200k pm
b) buy 3 apartments in kileleshwa each 16m and 80k rent, total 240k pm
c) put up 2 blocks of flats in kitengela, kasarani, ruaka etc each with 25 units, total no. of units 50, rent @15k thus total rent 750k pm?
Or d) buy stocks that yield 10% dividend, that would be 5m in dividends per Yr or about 420k per month, in addition to capital gains. These are very hard choices to make, moreso for a novice. One thing I know, there is great power to the age old adage 'Do not put all your eggs in one basket'
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Rank: Member Joined: 3/26/2012 Posts: 830
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How about option c but the two blocks to be in different locations e.g kasarani and kitengela? One last thing...I would never substitute real estate for stocks...NEVER.You have the cash,consult a professional and go into real estate. Some of us are investing in stocks with the aim of getting capital for real estate. A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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Mukiri wrote:ChessMaster wrote:Basically function/intent should be the driving force in the investment choice. Good. Lets say it serves as purely and investment vehicle where you acquire for capital gains or income. If you're buying to sell,who are you selling to and what's driving them to buy? If its for income, what are your strategies for dealing with competition? Ditto. The WHY comes before the WHAT which determines the WHERE. This not only in Real estate but in all aspects of life. I totally agree. Population is the main factor most people justify their investment in real estate with. For most of the developed world,the population levels are declining.Although E.A,esp,Kenya has one of the highest rates of population growth. This to me will change simply because people are getting married late and having fewer children. Two youth unemployment/underemployment also reinforces the previous point making it even bigger.Thirdly,I think unlike previous generations,the value of marriage and family life has shifted. Uncertainty is certain.Let go
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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How would a real estate boom play out in Kenya? Uncertainty is certain.Let go
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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if you had 50m ksh its common sense to continue investing in areas that returned the 50m!
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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kaifastus wrote:if you had 50m ksh its common sense to continue investing in areas that returned the 50m! Could be inheritance/windfall thus looking for an investment avenue... GOD BLESS YOUR LIFE
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Rank: Member Joined: 7/17/2011 Posts: 627 Location: Mbui-Nzau, Kikumbulyu
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It would be an Inverse bubble burst
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Mukiri wrote:jaggernaut wrote:jaggernaut wrote:If someone had 50m, what's the best option?
a) buy a house in runda @50m and rent out at 200k pm
b) buy 3 apartments in kileleshwa each 16m and 80k rent, total 240k pm
c) put up 2 blocks of flats in kitengela, kasarani, ruaka etc each with 25 units, total no. of units 50, rent @15k thus total rent 750k pm?
Or d) buy stocks that yield 10% dividend, that would be 5m in dividends per Yr or about 420k per month, in addition to capital gains. These are very hard choices to make, moreso for a novice. One thing I know, there is great power to the age old adage ' Do not put all your eggs in one basket' Always carry them in one tray
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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^^ We are still debating if it was a D or an E you got in school 
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