hmmm....if u sell..can u at least use profits to build and rent...maybe flats etc etc..rongai area luks prime for this

Mukiha, you have some good perspective on the matter. It's quite tricky as patience is needed on this one, else you may burn your fingers. However, personally, if I could sell for a profit, I would. Then buy land and start building slowly. Building is way cheaper than buying, but way more consuming also. Managing your building project is no joke. I also find mortgages to be rip offs, however for most of us this may be the most feasible path to owning a house.

There is the other issue of time spent on the road, the cost of fuel and and the wear and tear on the car. i spend 12k to 15k monthly on fuel

Before I present my argument, I'd like to make the following assumptions;

1. that your mortgage repayments are higher than the cost of renting a house in the city

2. that you are on a variable rate of interest for your mortgage

3. that at no time will the interest rates change in the future to negate 1 above.

If the above three factors hold, then it would make economical sense to keep the house, rent it and plough into your future mortgage repayments;

(a)the extra 5k from renting the house, and

(b)the difference between the current mortgage repayment and your rent in the city

For the additional costs associated with living in Rongai (transport, security and any other cost), you can plough these into your mortgage repayments (not much at face value but over 25 years or thereabout, they will make a significant difference in your mortgage)

The other major reason for keeping the house is, at any given time, you are a home-owner and got a tangible asset to use as security for any additional loans or financial commitments (I know we are not there yet in Kenya but we are heading there - the bank or another third party can loan you money against the value of your partial ownership of the property without undue encumberance from your mortgage provider - well, unless you are not making the repayments!)

There are also the non-monetary benefits of getting home while the sun is still shining and spending as much of the evening at home and not stuck in traffic on Langata Road!

and lastly, of course, so long as hijackings continue unabated off the east coast of Africa, the property boom is here to stay and therefore you may not be in a position to afford your house 3-5 years down the road.

@all. i think your argument is convincing. i have seen the sense in keeping the house. what am still struggling with is whether to move back to the city or to just continue living in my rongai house.

am trying to rationalise the cost implications vis Avis the other softer issues of quality time with my family. my mortgage repayment is 25k,i spend a further 5k on utilities, 15k on fuel that sums about to about 45k give and take. in nairobi, rent, utilities and fuel will cost 55k. if i get a tenant to cover my mortgage costs then, for just an extra 10k, i will reap the advantages of living in nairobi.
however, i don't fancy being a land lord and the rent collecting headache that often comes with that status!

Is there a restriction on the type of housing that can be built on the plot?

40,000 for rent on a 3 bed room!! wierdo??

Kyt thats what 3bedroom houses go for, actualy thats on the lower side as u get within 2-3km radius from the cbd. Ul even b lucky to get one at that price. @ redondo id advise u to hold on to that hse til it appreciates enough to get enough profit to buy land and build. about the choice to move or not...

Sell it!! And invest the money into buying real estate. (Another house and land). You have seen how fast land appreciates. In ten years time you can pay cash for a house in Karen. And since you are buying and selling houses, you will always have a house to fall back on just in case. Its what I'd do.