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SHARES versus REAL ESTATE
Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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Rank: Member Joined: 2/20/2007 Posts: 767
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S.Mutaga III wrote:tom_boy wrote:Either shares or real estate will give good returns for long investment horizon. However, what matters most is the specific share one is considering buying vs the specific real estate one is considering. The other factor is liquidity. Here, shares win hands down. Also, Good quality shares will act as security for a loan with much less hussle and expense than compared with using land as security. Kindly explain the highlighted part. What is the procedure? By how much do they discount the shares while valuing them, because I cant accept the security to be valued at more than 20% below market prices Last I checked, you get 60% of the value of shares. 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: 1/20/2011 Posts: 1,822 Location: Nakuru
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madebe wrote:The debate about shares vs real estate has been here in wazua for a long time. I am invested in half -real estate and NSE. I however love NSE because of two reasons. The prices are real and easy to obtain and two the shares are liquid. The problem of land is that it is not readily liquid and you hear about the prices but try selling your piece that is when you realise that the prices being mentioned are hot air....i've tried selling land in KBC and Utawala and i know..... I can relate.......  Dumb money becomes dumb only when it listens to smart money
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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This has always been a million dollar question. "Cytonn research projects the real estate sector to have the highest return on investment at 23.8 percent compared to investment in other markets that includes the public market with fixed Income and equities projected to have a 15 percent return in 2015." http://www.capitalfm.co....-sector-is-a-gold-mine/
I used to have stocks as my main portfolio, despite making money in stocks I have now i have migrated to real estate. Since the last 4 years, my ROI is at 10% in terms of rental returns, and capital gains are 29% compounded per year minimum. Most having been a steady 36.8% per year just 1 or 2 laggards, bringing the average down. Basically, we have doubled our investment and then some Rent escalations are between 5-7% yearly. The mortgaged ones are also receiving rent equivalent to or higher than the monthly repayments. Putting us in positive cashflow. The inconsistency in stocks was annoying, Buying real estate in good areas, you are assured of Capital appreciation and solid rental returns with assured rent escalation. In stocks, this maybe a hit or a miss. There is no real consistency, you don't run the company, so you don't really know whats happening save from the press, twitter etc. However, everyone has a calling, despite the fact that, I made mullah in stocks, my calling was in real estate. Everyone is different. Choose your area and specialise in it.
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Rank: Member Joined: 9/14/2011 Posts: 869 Location: nairobi
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Horton wrote:This has always been a million dollar question. "Cytonn research projects the real estate sector to have the highest return on investment at 23.8 percent compared to investment in other markets that includes the public market with fixed Income and equities projected to have a 15 percent return in 2015." http://www.capitalfm.co....-sector-is-a-gold-mine/
I used to have stocks as my main portfolio, despite making money in stocks I have now i have migrated to real estate. Since the last 4 years, my ROI is at 10% in terms of rental returns, and capital gains are 29% compounded per year minimum. Most having been a steady 36.8% per year just 1 or 2 laggards, bringing the average down. Basically, we have doubled our investment and then some Rent escalations are between 5-7% yearly. The mortgaged ones are also receiving rent equivalent to or higher than the monthly repayments. Putting us in positive cashflow. The inconsistency in stocks was annoying, Buying real estate in good areas, you are assured of Capital appreciation and solid rental returns with assured rent escalation. In stocks, this maybe a hit or a miss. There is no real consistency, you don't run the company, so you don't really know whats happening save from the press, twitter etc. However, everyone has a calling, despite the fact that, I made mullah in stocks, my calling was in real estate. Everyone is different. Choose your area and specialise in it. @Horton thanks for sharing. Always good to know other people's experiences. The 10% return you mention on rent, is that on commercial property? also is that after factoring financing costs? Because my experience on residential property aftering factoring in financing costs of about 12% leaves me with just about 3%.
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Rank: Member Joined: 1/24/2011 Posts: 407 Location: Nairobi,Kenya
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Now that the discussion is on real estate,could guys please advice on the following.I have some land in which I hope to develop rentals.Now me question is,is it better to transfer the land to my company and develop as a company or I just go ahead and develop as an individual.The issue of KRA taxes is causing me this confusion. Hope is not a strategy
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Rank: New-farer Joined: 2/9/2015 Posts: 11 Location: juja
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Haloo brilliant minds of wazua,I have been recently employed earning over 40k, am planning to invest some of my salary in something ,and as I followed the thread I got confused along the way on which investment to undertake as people are 50-50 on both,now can someone help me figure out which is best to start with at this age,am 23yrs.
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Rank: Member Joined: 1/13/2014 Posts: 398 Location: Denmark
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mtaeric wrote:Haloo brilliant minds of wazua,I have been recently employed earning over 40k, am planning to invest some of my salary in something ,and as I followed the thread I got confused along the way on which investment to undertake as people are 50-50 on both,now can someone help me figure out which is best to start with at this age,am 23yrs. Over 40k ?!? I din't know 40k was the threshold for an investor. Anyway this leaves a wide range of discussion points since you could even be earning a million. Continue reading through the many threads you will find a lot of priceless information Seeing is believing
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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I sugest you start with how much is availble to you for investiment, once you know what you wnat to put away every month in way of saving or taking a loan.
But my sound advise a car is not an investiment ( only if some one told me that long time ago)
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Rank: Member Joined: 9/30/2013 Posts: 254
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mtaeric wrote:Haloo brilliant minds of wazua,I have been recently employed earning over 40k, am planning to invest some of my salary in something ,and as I followed the thread I got confused along the way on which investment to undertake as people are 50-50 on both,now can someone help me figure out which is best to start with at this age,am 23yrs. best advise shares need very low capitalso start with shares then graduate to real estate with 40K we really do not know what you are saving,so yes start small with share one day sell part of the shares and diversify to land and then real estate.
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Wazua
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SHARES versus REAL ESTATE
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