Kwanin,

Cost of insurance for fire purposes is determined by a QS. If your house burns down the cost adjuster will contact a QS to see if it was firstly properly insured for the purpose. The adjuster will also use a QS to determine the cost of restoration. You could have over insure or under insured both of which allow the Insurance companies to escape without paying part or all of their liability.

When it comes to mortgages,sales,forced sale,market value,then go to a valuer.


Fundamentals + Sentiments = Position

Call NW REALITE LTD on 0202727475; 0202728778 and ask for Isaac Wirunda


BOBB

@Tebes;

I'd like to differ slightly with @Litro. I think you can ESTIMATE the MARKET value of a house from its rent. But the relationship varies from town to town.

In Nairobi,the market value of a house comes to approximately 150 times the monthly rent. Thus if the rent is 20k,the market value is about 3m. In my estate,2br house are fetching between 30k to 35k in rent and anyone wishing to sell will not discuss anything with you if don't have 5m

As for the example given by @Litro; chances are that if the house currently fetching 50k rent is sold to a new owner at 10m,the new owner would soon raise that rent to 65k.......65 x 150 = 9.75m. BTW: if I bought it,I would do exactly that!

Perhaps this explains why rents have been shooting up so often....people are buying house for speculative reasons; when the sell them,the new owners are hiking up the rent to get decent returns on investment....

It's not a rule-of-thumb,but it's a good guide...estimate

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

Hi,,

You try contacting Paragon Valuers... I've used them before after shopping around,and they were quite resonable on price. They're on Twiga Towers,3rd floor. Ask for John Ikonya on 315750/2246673,very professional dude. Good luck

@Kwanini,
Overvalue? Relative to what?

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