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Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 7/22/2009 Posts: 7,910
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tom_boy wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Bwana Maich wacha stress, the flat is 34 m because there are willing buyers at that price ... In Kenya What stress??? I'm just stating a fact! since when did stating a fact qualify to be called stress?? 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: 12/7/2012 Posts: 11,937
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The flats could be 3.4m  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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Angelica _ann wrote:tom_boy wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Bwana Maich wacha stress, the flat is 34 m because there are willing buyers at that price ... In Kenya  For the flat to be 34m and not 20 or 25 or 30 means NSSF have done market study and established that there are people who are able and willing to buy at that price. How they fund the 34m is thier business! I thought @wazua was supposed to be about reasoning, value for money etc. All over sudden we have deteriorated to a willing buyer - willing seller forum??? In that case, we should have been advising people to buy Home Africa shares at 25/= because there were people selling and buying at those prices!!! 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: 12/7/2012 Posts: 11,937
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@MB i take back what i said - wazua is to learn and open our eyes that is true. However when some of the people buy some of the housing units at crazy figures, they buy more than the house. It could be convinience e.g. near good schools for children and easy access to workplace, peer pressure, job negotiated buy outs, etc. I think that is why at end of the day sellers work with peoples emotions and make a kill. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Or 34 million Zim Dollars! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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I saw the NSSF advert on tuesday and I also wondered..At the quoted prices NSSF should have put a full page Ad..the one they put was rather small.One of the the selling points was that there are two access roads..one of them I believe is via state house road..The application form is 2K..May be these guys have CS's,governors,their deputies etc.. in mind..
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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they need to specify the currency on a serious note
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? you can "accelerate" this to 2,500,000/= per month
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Rank: Member Joined: 2/20/2007 Posts: 767
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MaichBlack wrote:Angelica _ann wrote:tom_boy wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Bwana Maich wacha stress, the flat is 34 m because there are willing buyers at that price ... In Kenya For the flat to be 34m and not 20 or 25 or 30 means NSSF have done market study and established that there are people who are able and willing to buy at that price. How they fund the 34m is thier business! I thought @wazua was supposed to be about reasoning, value for money etc. All over sudden we have deteriorated to a willing buyer - willing seller forum??? In that case, we should have been advising people to buy Home Africa shares at 25/= because there were people selling and buying at those prices!!! Bwana Maich, sio kwa ubaya lakini one fact of life is that the more money you have, the more divergent your 'value for money' becomes compared to the guy with less money. Let me explain, if I make 2.5M a month ( and there are professionals in Kenya who make that cash in a bad month - I kid you not) or I own an SME that makes 5m a month, I will not see any problem with buying that 34m flat as long as it serves my other intagible needs e.g prestige, refuge for my mpango wa kando, city home that is near my office ... etc etc. At that level of income, my real estate purchases are not really about how much money I can get out of it, but how much enjoyment I will get from it. I will therefore not hesitate to buy a 22 0r 34 million house as long as it serves my needs and will probably buy it for cash or a very short term mortgage and the number of Kenyans with such capacity are more than the supply of such houses. 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: Elder Joined: 7/22/2009 Posts: 7,910
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Is Taking a Mortgage the WORST Decision Ever??
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