Being an Economics and Statistics student, I have always thought whether there is a passive investment where one can make money apart from stocks and owning rentals. Land speculation seems to be the answer.
My little research revealed that most wazuans made their first million after selling land 'How you made your first million'. The only drawbacks are the huge capital outlay and the illiquidity of the investment. With the ability to decipher statistics from the Kenya bureau of statistics, it is time some of this data was put into good use by a mwananchi. The data could be instrumental in helping one to locate areas with the highest population growth. Land is a fixed resource and the population grows exponentially. This means that the pressure on land will continue until a time when there will be no or negative population growth which is very unlikely to happen in the next twenty years. In some places, prices have been seen to double annually. I believe that when armed with vast knowledge in land and urban economics, coupled by a team of competent staff e.g good scout, perfect online researchers and a lawyer who understands conveyancing, one can make a fortune from this. Land is better than stocks because in Kenya, if you speculate wisely, it has better return on investment and next to no risk.
Whats more, you can lease the land at a fee as you wait for it to appreciate. With such returns around http://www.businessdaily...6/-/1rlkte/-/index.html and http://www.a4architect.c...d-nairobi-2000-to-2013/ I believe that one ought to master the art of land speculation for better returns than stocks over the medium term.

I would be cautious on that note.In Kenya the risk is very high depending on where you are buying or from who.The rule of thumb for me is that in 80% of the transactions assume you are being conned and do your 'Due diligence' as we have always said
Some clown sold me land in one of the transactions and when i went to fence it voila the surveyor informed me the title i had gotten was for another piece elsewhere.Guy has had to compensate me plus pay interest over 2 years!

@mkonotupu..well put. Land in kenya is over valued. The reason is that there are vast prime lands left idle as owners speculate. Only the land commission can stop this by implementing idle land taxation.
High land prices have in turn affected housing and rent costs.

When the real estate bubble bursted in the US it was because people took up loans that they weren't able to pay. How will this bubble burst in Kenya? Are people taking up loans or are they paying cash?

[quote=Kalameni]the big question is when this bubble is going to burst ? is it any time soon or will population pressure,massive rural to urban migration sustain it for the next 17yrs till 2030 when our beloved nation becomes a middle income country.



Which Bubble will happen when you can not get an acre of land for 5 Million cash 50 Kilometre radius of Nairobi.

in the us, bank loans were allowing people to own homes. In kenya, these are only available to very few yet land prices keep increasing to unaffordable values. For kenya, the bubble will burst with mass action/civil disobedience when people will not be able to house and feed themselves.If Ngilu and land commission implements idle land tax, such situations will not occur.

ama nipande miti which takes 123 yrs to mature.

What is idle land?What if I plant hay (grass)?Trees?

Give good examples Kiyana. UMK is not the biggest land owner in Kenya. He is Probably the 300th. That is a fact. And Indeed, all his land is in Proper use. Big part of Gicheha farm in Ruiru is graze land for Cattle while the other has Commercial trees plantation. Enda nakuru, enda Kwale. Vivyo hivyo. Wacha Kuingilia watu ovyo ovyo.

An asset bubble does not mean that the prices will necessary come down. Prices might stagnate to catch up with the rest of the economy. It means there is a mismatch on the price being paid and the underlying asset-value and the market will correct itself. If you keep raising the price of the land that you bought and fenced off you will find at one point there are no buyers at the price you are quoting. That's when the house of cards comes tumbling down.

People might be paying cash but somewhere there is a someone who is borrowing or lending and who is taking a gamble with other people's money hoping that buyers will keep buying at ever higher prices.