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Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 7/11/2012 Posts: 5,222
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MaichBlack wrote:mkonomtupu wrote:MaichBlack wrote:sparkly wrote:Jamani wrote:Mortage issues aside...real esate investment vs stock investment....real esate is far much better. How? Same as stock. Buy low sell high. I invest in both stocks and real estate - using my own cash. I don't borrow to buy stock. I don't borrow to buy real estate.You can make a killing from real estate - using your cash! Like the Ruiru bypass has made me a very happy Kenyan. Example: Bought a plot behind Kamakis (there was no Kamakis at the time - just one lonely looking pub/nyama choma place) just after the bypass was done. At that time, a plot - 2nd row - was going for 800k for an 1/8th. Today - 4 million!! And the place is just starting to grow! But I'm not selling yet. Last year bought a couple touching the great eastern bypass. The road is not built yet. Just beacons. Guess what! Most locals - including brokers don't exactly where it is so the price was low. People are also not sure "if the road will ever be built and when". But when it does... Trick - Buy places that are opening up and wait... @MaichBlack, why are you afraid of leverage a.k.a. debt. Leverage is one of the big tools after compound interest. So long as your rate of return is bigger than the cost of capital you can use leverage to go places. I have just finished paying up my Sacco loan for the the NIC and KCB shares bought at 25/ and 23/ respectively. Used in the right way using "other peoples money" will boost your portfolio. My rule is not to exceed 50% of my total assets Borrowed money creates panic. Good example: safaricom Shares! Those who bought using loans bolted out at a loss! Those who had used their own money [most - me being one of them] stayed put even when it was at 2.x/=. Some actually added more! I can only borrow for "sure" investments. Those are few and far apart. You can only panic if you have no clear plan ie If you fail to plan, you are planning to fail ~ Benjamin Franklin To use your example, during Safaricom's IPO, I took a loan, bought the shares. I knew they'd go up because of the over subscription and the then love affair with IPOs. Immediately they started trading, I sold the shares on debt at a profit, payed the bank. End of the day, I had the shares bought using cash AND the profit from what I'd borrowed from the bank. Leverage. Mbloo, where exactly is this and how much is land there Quote:Last year bought a couple touching the great eastern bypass. The road is not built yet. Just beacons. Guess what! Most locals - including brokers don't exactly where it is so the price was low. People are also not sure "if the road will ever be built and when". But when it does... And doesn't gova first have to work on Langata road, Ngong road, Konza before it goes diaspora?
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Rank: Veteran Joined: 10/9/2006 Posts: 1,502
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webish wrote:2012 wrote:MaichBlack wrote:Kitengela is another good example - For people who got in early. The were selling/buying pieces of land. No one was selling plots. That would have been akin to selling matchsticks [as opposed to the whole match box!] because the prices were dirt cheap! Now... 1/8th can pay for the 2 or 3 acres you bought! Very true. Kitengela was one of my regrets. I was working on Msa road back then and land around EPZ was going for 'would you believe' 35k an acre!!!? We all knew about it but wisdom was not with us. I actually bought a car on loan for 720k at that time. I used to feel pain whenever I saw any Nissan of that model. Pole. Precisely, which year was this? "Back then" is quite relative. Might be 98-2001. Bought when an acre was 150-200k. work to prosper
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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Only half of Kenya’s urban population can afford to commit 30 per cent of gross salary to mortgage. Even then, 30 per cent can only afford a Sh700,000 house at the cheapest mortgage rate of 13.9 per cent in the market presently. Fifteen per cent of urban residents earning a gross Sh53,266 monthly cannot afford a house worth above Sh1.1 million, while only five per cent can afford a Sh3.9 million and above at a mortgage rate of 13.9 per cent. Kariuki said to shift mortgage uptake, interventions must be geared towards the simple equation mortgage repayments equal monthly rent. “This simple formula is the key to unlocking homeownership,” she said. At the moment, a Sh5.6 million two-bedroom house in Mlolongo fetches average rents of Sh21,000 monthly. To buy the same house on mortgage, a homeowner would need to service it at Sh69,230 monthly at the lowest rate of 13.9 per cent. “The average mortgage rate has stuck at nearly 17 per cent since the third quarter last year,” said Jenny Luesby. Repayments are thus double or triple the market rent for a house at times, putting off not only prospective first-time homebuyers but also buy-to-let landlords who would have to dig into their pockets to top-up the difference. And as commercial lenders stick to their ways, Kariuki said, mortgage uptake now depends on government intervention either through supporting mortgage-backed securities, or through creation of housing funds and offering mortgage subsidies. - See more at: http://www.the-star.co.k...ans#sthash.4Gp5IaAK.dpuf
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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[quote=Jamani]Only half of Kenya’s urban population can afford to commit 30 per cent of gross salary to mortgage. Even then, 30 per cent can only afford a Sh700,000 house at the cheapest mortgage rate of 13.9 per cent in the market presently. Fifteen per cent of urban residents earning a gross Sh53,266 monthly cannot afford a house worth above Sh1.1 million, while only five per cent can afford a Sh3.9 million and above at a mortgage rate of 13.9 per cent. Kariuki said to shift mortgage uptake, interventions must be geared towards the simple equation mortgage repayments equal monthly rent. “This simple formula is the key to unlocking homeownership,” she said. At the moment, a Sh5.6 million two-bedroom house in Mlolongo fetches average rents of Sh21,000 monthly. To buy the same house on mortgage, a homeowner would need to service it at Sh69,230 monthly at the lowest rate of 13.9 per cent. “The average mortgage rate has stuck at nearly 17 per cent since the third quarter last year,” said Jenny Luesby. Repayments are thus double or triple the market rent for a house at times, putting off not only prospective first-time homebuyers but also buy-to-let landlords who would have to dig into their pockets to top-up the difference. And as commercial lenders stick to their ways, Kariuki said, mortgage uptake now depends on government intervention either through supporting mortgage-backed securities, or through creation of housing funds and offering mortgage subsidies. - See more at: http://www.the-star.co.k...ns#sthash.4Gp5IaAK.dpuf[/quote] How are Nairobians managing this mortgage repayment at the current interest rates? Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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dunkang wrote:[quote=Jamani]Only half of Kenya’s urban population can afford to commit 30 per cent of gross salary to mortgage. Even then, 30 per cent can only afford a Sh700,000 house at the cheapest mortgage rate of 13.9 per cent in the market presently. Fifteen per cent of urban residents earning a gross Sh53,266 monthly cannot afford a house worth above Sh1.1 million, while only five per cent can afford a Sh3.9 million and above at a mortgage rate of 13.9 per cent. Kariuki said to shift mortgage uptake, interventions must be geared towards the simple equation mortgage repayments equal monthly rent. “This simple formula is the key to unlocking homeownership,” she said. At the moment, a Sh5.6 million two-bedroom house in Mlolongo fetches average rents of Sh21,000 monthly. To buy the same house on mortgage, a homeowner would need to service it at Sh69,230 monthly at the lowest rate of 13.9 per cent. “The average mortgage rate has stuck at nearly 17 per cent since the third quarter last year,” said Jenny Luesby. Repayments are thus double or triple the market rent for a house at times, putting off not only prospective first-time homebuyers but also buy-to-let landlords who would have to dig into their pockets to top-up the difference. And as commercial lenders stick to their ways, Kariuki said, mortgage uptake now depends on government intervention either through supporting mortgage-backed securities, or through creation of housing funds and offering mortgage subsidies. - See more at: http://www.the-star.co.k...ns#sthash.4Gp5IaAK.dpuf[/quote] How are Nairobians managing this mortgage repayment at the current interest rates? As it is said less than. 30k kenyans mortgage but if you look around units are being bought out. I guess most are on cash or near cash basis, with funds from savings, sacco loans, diaspora, piracy, corruption, etc.
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Rank: Elder Joined: 7/22/2009 Posts: 7,473
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Mukiri wrote:Mbloo, where exactly is this and how much is land there Quote:Last year bought a couple touching the great eastern bypass. The road is not built yet. Just beacons. Guess what! Most locals - including brokers don't exactly where it is so the price was low. People are also not sure "if the road will ever be built and when". But when it does... And doesn't gova first have to work on Langata road, Ngong road, Konza before it goes diaspora? Mbloo, information is power! Greater Eastern Bypass: Will connect Mombsasa road at Lukenya Hills to Garissa Road at Kilimambogo. Status: Road recently marked with beacons. Detailed engineering designs are ongoing. A vision 2030 project along with Thika Road, the bypasses etc. Road ProjectsLink TwoNever count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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MaichBlack wrote:Mukiri wrote:Mbloo, where exactly is this and how much is land there Quote:Last year bought a couple touching the great eastern bypass. The road is not built yet. Just beacons. Guess what! Most locals - including brokers don't exactly where it is so the price was low. People are also not sure "if the road will ever be built and when". But when it does... And doesn't gova first have to work on Langata road, Ngong road, Konza before it goes diaspora? Mbloo, information is power! Greater Eastern Bypass: Will connect Mombsasa road at Lukenya Hills to Garissa Road at Kilimambogo. Status: Road recently marked with beacons. Detailed engineering designs are ongoing. A vision 2030 project along with Thika Road, the bypasses etc. Road ProjectsLink Two Fungua loho, mbloo  Name of area(s)? Both Lukenya and Kilimambogo are expensive. I'm reminded of the upcoming golf/gated communities. Where are you, we 'eat' together?
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Rank: Elder Joined: 7/22/2009 Posts: 7,473
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Mukiri wrote:MaichBlack wrote:Mukiri wrote:Mbloo, where exactly is this and how much is land there Quote:Last year bought a couple touching the great eastern bypass. The road is not built yet. Just beacons. Guess what! Most locals - including brokers don't exactly where it is so the price was low. People are also not sure "if the road will ever be built and when". But when it does... And doesn't gova first have to work on Langata road, Ngong road, Konza before it goes diaspora? Mbloo, information is power! Greater Eastern Bypass: Will connect Mombsasa road at Lukenya Hills to Garissa Road at Kilimambogo. Status: Road recently marked with beacons. Detailed engineering designs are ongoing. A vision 2030 project along with Thika Road, the bypasses etc. Road ProjectsLink Two Fungua loho, mbloo Name of area(s)? Both Lukenya and Kilimambogo are expensive. I'm reminded of the upcoming golf/gated communities. Where are you, we 'eat' together? There is a whole stretch between these two places. In my case, they are near juja farm - Actually, as of now, you have to use the Juja farm road to access the plots. And guys in Juja farm area have no idea where the road will pass through! The first time I went those side I tried asking a number of people how I can access the [upcoming] bypass and they were totally blank!!! Absolutely no idea what I was talking about!!! And the road is even marked with beacons and individuals who's pieces of land are to annexed [the bypass will be wider and with more road reserve than earlier envisaged] have been formerly informed! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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MaichBlack wrote:Mukiri wrote:MaichBlack wrote:Mukiri wrote:Mbloo, where exactly is this and how much is land there Quote:Last year bought a couple touching the great eastern bypass. The road is not built yet. Just beacons. Guess what! Most locals - including brokers don't exactly where it is so the price was low. People are also not sure "if the road will ever be built and when". But when it does... And doesn't gova first have to work on Langata road, Ngong road, Konza before it goes diaspora? Mbloo, information is power! Greater Eastern Bypass: Will connect Mombsasa road at Lukenya Hills to Garissa Road at Kilimambogo. Status: Road recently marked with beacons. Detailed engineering designs are ongoing. A vision 2030 project along with Thika Road, the bypasses etc. Road ProjectsLink Two Fungua loho, mbloo Name of area(s)? Both Lukenya and Kilimambogo are expensive. I'm reminded of the upcoming golf/gated communities. Where are you, we 'eat' together? There is a whole stretch between these two places. In my case, they are near juja farm - Actually, as of now, you have to use the Juja farm road to access the plots. And guys in Juja farm area have no idea where the road will pass through! The first time I went those side I tried asking a number of people how I can access the [upcoming] bypass and they were totally blank!!! Absolutely no idea what I was talking about!!! And the road is even marked with beacons and individuals who's pieces of land are to annexed [the bypass will be wider and with more road reserve than earlier envisaged] have been formerly informed! @maich I also happen to own 2 40*80 plots around those areas and am also blank about the bypass.. Do you get to the jostar shopping centre just after the ka-dam? Seeing is believing
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Rank: Elder Joined: 7/22/2009 Posts: 7,473
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jawgey wrote:MaichBlack wrote:Mukiri wrote:MaichBlack wrote:Mukiri wrote:Mbloo, where exactly is this and how much is land there Quote:Last year bought a couple touching the great eastern bypass. The road is not built yet. Just beacons. Guess what! Most locals - including brokers don't exactly where it is so the price was low. People are also not sure "if the road will ever be built and when". But when it does... And doesn't gova first have to work on Langata road, Ngong road, Konza before it goes diaspora? Mbloo, information is power! Greater Eastern Bypass: Will connect Mombsasa road at Lukenya Hills to Garissa Road at Kilimambogo. Status: Road recently marked with beacons. Detailed engineering designs are ongoing. A vision 2030 project along with Thika Road, the bypasses etc. Road ProjectsLink Two Fungua loho, mbloo Name of area(s)? Both Lukenya and Kilimambogo are expensive. I'm reminded of the upcoming golf/gated communities. Where are you, we 'eat' together? There is a whole stretch between these two places. In my case, they are near juja farm - Actually, as of now, you have to use the Juja farm road to access the plots. And guys in Juja farm area have no idea where the road will pass through! The first time I went those side I tried asking a number of people how I can access the [upcoming] bypass and they were totally blank!!! Absolutely no idea what I was talking about!!! And the road is even marked with beacons and individuals who's pieces of land are to annexed [the bypass will be wider and with more road reserve than earlier envisaged] have been formerly informed! @maich I also happen to own 2 40*80 plots around those areas and am also blank about the bypass.. Do you get to the jostar shopping centre just after the ka-dam? I can give you a number of someone [broker] who can take you where the bypass is the next time you are in Juja farm. he's based in the Juja Farm shopping Center. Disclaimer: I haven't bought land from him directly but he connected us to someone who sold us a piece of land as a group. But he can definitely take you to the place. He's a mzee who owns land in the area and has lived there for long so he knows the area well. Weka email address hapa if you are interested. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 10/23/2007 Posts: 604
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Taking a mortgage can be a very good decision depending on who is giving you the loan. I've just checked out with KUSCCO and they are quite cheap. 14% Reducing Balance.
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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MaichBlack wrote:jawgey wrote:MaichBlack wrote:Mukiri wrote:MaichBlack wrote:Mukiri wrote:Mbloo, where exactly is this and how much is land there Quote:Last year bought a couple touching the great eastern bypass. The road is not built yet. Just beacons. Guess what! Most locals - including brokers don't exactly where it is so the price was low. People are also not sure "if the road will ever be built and when". But when it does... And doesn't gova first have to work on Langata road, Ngong road, Konza before it goes diaspora? Mbloo, information is power! Greater Eastern Bypass: Will connect Mombsasa road at Lukenya Hills to Garissa Road at Kilimambogo. Status: Road recently marked with beacons. Detailed engineering designs are ongoing. A vision 2030 project along with Thika Road, the bypasses etc. Road ProjectsLink Two Fungua loho, mbloo Name of area(s)? Both Lukenya and Kilimambogo are expensive. I'm reminded of the upcoming golf/gated communities. Where are you, we 'eat' together? There is a whole stretch between these two places. In my case, they are near juja farm - Actually, as of now, you have to use the Juja farm road to access the plots. And guys in Juja farm area have no idea where the road will pass through! The first time I went those side I tried asking a number of people how I can access the [upcoming] bypass and they were totally blank!!! Absolutely no idea what I was talking about!!! And the road is even marked with beacons and individuals who's pieces of land are to annexed [the bypass will be wider and with more road reserve than earlier envisaged] have been formerly informed! @maich I also happen to own 2 40*80 plots around those areas and am also blank about the bypass.. Do you get to the jostar shopping centre just after the ka-dam? I can give you a number of someone [broker] who can take you where the bypass is the next time you are in Juja farm. he's based in the Juja Farm shopping Center. Disclaimer: I haven't bought land from him directly but he connected us to someone who sold us a piece of land as a group. But he can definitely take you to the place. He's a mzee who owns land in the area and has lived there for long so he knows the area well. Weka email address hapa if you are interested. Tuma kwa njugialex@gmail.com. Thanks Seeing is believing
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Rank: Elder Joined: 7/22/2009 Posts: 7,473
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@jawgey - Check your mail. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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MaichBlack wrote:@jawgey - Check your mail. Me too. ellyodhong@gmail.com
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Rank: Member Joined: 5/31/2009 Posts: 226
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Phenom estate 4bedroom massionnettes was 14m in 2012 today 22m even if u took a mortgage at that time assuming uve paid only 1m u can sell at 22m make a clean 9000000kes and buy a similar house on msa road or build your own mansion on a 3m prime plot
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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premio wrote:Phenom estate 4bedroom massionnettes was 14m in 2012 today 22m even if u took a mortgage at that time assuming uve paid only 1m u can sell at 22m make a clean 9000000kes and buy a similar house on msa road or build your own mansion on a 3m prime plot You mean the Phenom next to Carnivore the houses there go for 22m?The buyers must be financially illiterate to buy at that price
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Rank: Elder Joined: 7/22/2009 Posts: 7,473
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Check mail. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,473
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mawinder wrote:premio wrote:Phenom estate 4bedroom massionnettes was 14m in 2012 today 22m even if u took a mortgage at that time assuming uve paid only 1m u can sell at 22m make a clean 9000000kes and buy a similar house on msa road or build your own mansion on a 3m prime plot You mean the Phenom next to Carnivore the houses there go for 22m?The buyers must be financially illiterate to buy at that price @mawider - Kenyans are peculiar lot. They are buying 4th floor 3 bedroom apartments at 20+ million. If the bubble ever busts, some Kenyans will commit suicide TWICE. The only advantage people have is that policy markers are asleep. The day the government will wake up and decide to come up with policies aimed at making homes/houses affordable, people will be in problems. The winners here are the developers. They build and sell. When the sh!t hits the fan, the buyers will know "malenge ni mboga!". Kenyans believe this will never happen. Guess where else it was also not supposed to happen - the US!!! But that's a story for another day! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 11/9/2009 Posts: 2,003
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Boss, before yoy leave, drop me the contacts at radio.icloud@gmail Asante!
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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radio wrote:Boss, before yoy leave, drop me the contacts at radio.icloud@gmail Asante! Hata mimi jnaut at ymail dot com
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