Wazua
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Am tired of paying rent!
Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Tusker Baridi wrote:
If I had to buy a house in Nai,I would just sit back and rent while saving,this gives one several advantages. First,you wait for the market to cool down. Secondly,you get to save some money which you could use to buy a house cash or build it from scratch. Thirdly,with time there will be more and better housing options at more competitive prices.
4 years down the line have things cooled down? This reminds me of a friend who is ever complaining that every piece of land he finds is overpriced. Even when he can afford he doesn't buy. The land doubles in cost and he is always looking forward to saying goodbye to his landlord. Waiting for too long might leave you like these ladies 
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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@siringi, thanks for the link. I have downloaded the book "irrational Exuberance" and delving into the meat of it now. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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Siringi wrote:was not sure which of the many property and financial education threads to post this anyhow =>Nobel Prize winner Robert Shiller's Devastating Takedown Of Housing As An Investment Will Have You Renting For The Rest Of Your LifeExcerpts: Trish Regan: "Then why buy a home? People trap their savings in a home. They're running an opportunity cost of not having that money liquid to earn a better return in the market. Why do it?" Robert Shiller: "Absolutely! Housing traditionally is not viewed as a great investment. It takes maintenance, it depreciates, it goes out of style. All of those are problems. And there's technical progress in housing. So, new ones are better... "So, why was it considered an investment? That was a fad. That was an idea that took hold in the early 2000's. And I don't expect it to come back. Not with the same force. So people might just decide, "Yeah, I'll diversify my portfolio. I'll live in a rental." That is a very sensible thing for many people to do. "If you think investing in housing is such a great idea, why not invest in cars? Buy a car, mothball it, and sell it in 20 years. Obviously not a good idea because people won't want our cars. It's the same with our houses. So, they're not really an investment vehicle." =>The Economist Who Just Won a Nobel Prize Thinks Owning a Home Is a Terrible InvestmentDiscuss 50marks This isn't news,its just being said again & differently, by a Nobel laureate. Unless you want to sneak in rental housing in which case i would disagree. how pple love comparing mangoes and oranges (stocks and real estate). for true stock investors, real estate is always an option (more like having both mangoes and oranges as part of your diet)we would love to also hear from buffet..or perhaps even trump, on housing and real estate!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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His Co-winner, negates his argument, then the other winner created a mathematical solution that proved them right. You have to understand economists never get answers to the questions they raise because the bottom line is the dynamics are always different. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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It makes sense to me to pay rent.... TO MYSELF! If I'm paying 50k as rent, why not take a mortgage and pay the same 50k? If I get tired of the house, sell it get my '50ks' and get another house/investment? Their idea would only hold if one was buying a house in lump-sum cash and there were 'better' assured investment vehicles. In which case, it would be prudent to invest in such and use the return to buy a house.
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Rank: Member Joined: 10/19/2009 Posts: 671 Location: Nairobi
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Very very interesting discussion. Would love to know how @Kave is doing, 4-5yrs down the line.
Life is joy, death is peace, but the transition is very difficult.
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Rank: Hello Joined: 9/30/2014 Posts: 7
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Let me revive this since it has been 5 years. How is everyone doing considering how the mortgage has been going?
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Rank: Member Joined: 2/20/2007 Posts: 767
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Buying/ owning a house is the most decent investment one can make in their early to mid life. The advantages far outweigh renting if you have the long term horizon of 30 to 40 yrs in mind. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 2/20/2007 Posts: 767
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tom_boy wrote:Buying/ owning a house is the most decent investment one can make in their early to mid life. The advantages far outweigh renting if you have the long term horizon of 30 to 40 yrs in mind. After crunching the numbers, I conclude that above statement is utterly false and mortgage is the biggest drain on investment ever. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Veteran Joined: 5/5/2011 Posts: 1,059
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tom_boy wrote:tom_boy wrote:Buying/ owning a house is the most decent investment one can make in their early to mid life. The advantages far outweigh renting if you have the long term horizon of 30 to 40 yrs in mind. After crunching the numbers, I conclude that above statement is utterly false and mortgage is the biggest drain on investment ever. Renting in early life is okay, what I hate about renting is that I am limited to what I can invest into the house eg I would like to do solar and water harvesting but it's not possible, I would like to do kitchen gardening but not possible, I would like to do some messy wood and metal DIY projects but I can't, I would like to clean my car they way I like but I can't, but no worries most of my clients building their dream houses are in their late 40s and 50s , very few of my age mates or those between 25-30 have built their houses, they might have plots but the house is off until kids grow up or family stabilizes. To Each His Own
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Am tired of paying rent!
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