Is taking a mortgage the best decision ever?

Apology first to the opposite discussion @maichblack:

Am in my early 30's and have a portfolio of stocks (10%), real estate - undeveloped plots (70%), policies and insurance policies (15%). This is an amount that runs into 8 figures. I also run a restaurant business on the side with net income of 120k per month (for the last 18 months) and little debt. Household income after loans and subsistence is 200K - from professional employment, so little risk of unemployment. Have recently gotten some 3 mirrion. current

I have two options:
1. take a mortgage for an apartment in Kileleshwa
Cost - 16M
Deposit - 3 mirrion
Repayments for 13 mirrion @ 13.9% (stanchart) = 160K for 25 years. Interest initially consumes 95% of this
Direct lumpsomes to reduce principle: target 3-5m within 12 months

Adv:
Nyumba ya kuishi (decent, great environment from Ngumo!!! ach ach)
Build equity for future projects - through equity release

Disadv: obvious - high interest

2. Build a 12 unit block of apartments in Kisii. Ready market
Estimated income 300k (worst case scenario)
Budget 30 mirrion.
Since 3 m is available, means the rest would have to come from financing...

Adv:
Can start ground floor and ???? possibly start earning 75k with initial amount. will have to top up
Great foundation for future projects

Disadv: - kuendelea kuishi ngumo (apology to those who have aspired to Ngumo - where I stay is not very nice... but thats not the discussion)

Pardon me, but are the numbers realistic for Kenya? Ksh 1 to grow to Ksh 6,859 in 20 years? Maybe you can give exact figures for NSE between 1993-2013, what has been the average rate of return? Then use the number.

I met a guy who told me that he bought half an acre in Kile at 1m in 1981.

Recently it was valued at 100m

Hell yeah! See post# 9 and post# 14.

As a matter of fact, wazuans like @stocksmaster will tell you I am being extremely conservative! Visit the links provided in post# 9.

Forget the rate of return at the NSE in general. You are not buying each and every stock. You should cherry pick. And if you don't know how [and you don't want to do the work yourself], listen to some very generous wazuans (One being @stocksmaster - among others) who will give you the information absolutely free of charge. Also follow discussions in this forum. You will outperform the market every time!!!

@Maichblack, I like your reasoning. But i do not agree with it: sometimes a house becomes an investment simply because it is a significant portion of your portfolio: if you have a 3 mirrion shilling house and nothing else (as most Kenyans start...)you have to make it count.
If you have a 100mirrion portfolio, you can buy a house like you are selecting a pair of shoes... right?