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What to do with 2.4M
Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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This is what i would do myself:1. Continue doing what you did to enable you get the loan in the first place. 2. Buy the plot in near prime area. 3. The balance, buy another plot in a not so prime area. After 3-5 yrs or so, sell the not so prime plot, combine with yr savings and possibly another loan or top up and build yr flats. Then come back and thank me. Only thing is to take care with land transactions
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Rank: Member Joined: 5/31/2009 Posts: 226
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T9 dont get discouraged every1 cannot do stocks or farming if your research on the houses is correct go for them the blue chips they are talking about Equity and kcb have both lost btn 10-20% over the last 30days so had u sunk your 2.4m in kcb your portofolio would be worth 2.2m today.
Kenyans buy cars all the time new and used just buy the plots since prices will increase and use the balance to import or buy local cars in good prices use the profits to construct the houses. With cars worst case scenario unless you are conned is recouping your cost thats always guaranteed.Dollar rate should not worry every1 will buy at the same rate problem is the impending duty hike but somewhere along the way way people will still buy. Am hoping u have a day job you are just looking for that extra coin. Construction rates in kitale cannot be same with nairobi or kisumu so 400k for a basic 1bedroom is very likely
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Rank: Member Joined: 6/21/2010 Posts: 345 Location: easto
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streetwise wrote:And how many units do you intent to build ? If bedsitters - 14 in an 1/8th. A neighboring plot(Eldy 1.5km from a campus) had plain bedsitters, no tiles going for 4K p.m. Tiled ones go for about 4.5k-5k p.m. If fully built monthly income of 63k. But with the seasonal nature of campus programs,(implying seasonal occupancy) I thought of 1br units, (9 fit in an 1/8th) and rent is 6k p.m. If fully built and occupied the monthly gross income is 54k. The issue here is the cost of construction(excluding the plot). Fundis were telling me the total cost estimate is about 5M. So that is where my headache begins. "The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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Rank: Member Joined: 6/21/2010 Posts: 345 Location: easto
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Boris Boyka wrote:
400k!!!! SMH...This is a structure,no ceiling, roof is that slanting shop like..no wiring & plumbing.. and rent is 6-7k. Anyway if those are the standards there fine. Some Fundi's are not accurate on costs. You may find the owner was doing in bits thus fundi estimates without actual figures....
Buy a few acres huko and farm well on them! If you get at least 3 ;Animal/dairy farm on one...another plant bluegum and another seasonal crops. A few yrs down line you'll have earned much and if will think of selling the whole farm your wealth will have trippled if not doubled. Thank me later.
I have really bad experiences with farming, that I wouldnt want to try now. I was farming via the phone, and I lost badly. I like the bluegum idea, but there you are talking of at least 5yrs. I want something to start generating income soon, if not immediately. I have a day job and a salary but mahitaji ni mingi sana..the usual nrb way "The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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Rank: Member Joined: 6/21/2010 Posts: 345 Location: easto
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limanika wrote:This is what i would do myself:1. Continue doing what you did to enable you get the loan in the first place. 2. Buy the plot in near prime area. 3. The balance, buy another plot in a not so prime area. After 3-5 yrs or so, sell the not so prime plot, combine with yr savings and possibly another loan or top up and build yr flats. Then come back and thank me. Only thing is to take care with land transactions @limanika, am salaried and a sacco member, where I have been getting all loans. I thought of it this way too, but am looking at the value gain in a plot in 5yrs vs what some alternative businesses(maybe theoretically) can make in 5yrs. If I bought a plot say for 500k, its unlikely it will be worth 2M after 5yrs, in these counties in the western part of the country. I believe there is something different I can do and make money faster than that. Also, unless the plot is very prime, it may take time to dispose it off. Reason I am looking for alternatives. "The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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Rank: Member Joined: 6/21/2010 Posts: 345 Location: easto
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premio wrote:T9 dont get discouraged every1 cannot do stocks or farming if your research on the houses is correct go for them the blue chips they are talking about Equity and kcb have both lost btn 10-20% over the last 30days so had u sunk your 2.4m in kcb your portofolio would be worth 2.2m today.
Kenyans buy cars all the time new and used just buy the plots since prices will increase and use the balance to import or buy local cars in good prices use the profits to construct the houses. With cars worst case scenario unless you are conned is recouping your cost thats always guaranteed.Dollar rate should not worry every1 will buy at the same rate problem is the impending duty hike but somewhere along the way way people will still buy. Am hoping u have a day job you are just looking for that extra coin. Construction rates in kitale cannot be same with nairobi or kisumu so 400k for a basic 1bedroom is very likely @Premio, thanks so much for your advice. I follow your threads about cars and I was even planning to ask for professional advice about the it outside of wazua. I know some freshmen in it, who actually are hacking it, but you seem so seasoned. The reason I wanted to secure the plot is I know they appreciate fast especially those near main roads and towns. There is one prime one I have identified, 100M off the tarmac going for 1.5M. After securing that, I know 900K cannot do much, maybe just a wall round the plot, stima, septic and the slab for the 1st row of houses. If lucky, maybe get to squeeze in the structure for the 1st bedsitter/site house. Reason I was looking for an alternative that I can use to grow the 900k. "The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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Rank: Member Joined: 7/6/2010 Posts: 242
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Quote:@Premio, thanks so much for your advice. I follow your threads about cars and I was even planning to ask for professional advice about the it outside of wazua. I know some freshmen in it, who actually are hacking it, but you seem so seasoned.
The reason I wanted to secure the plot is I know they appreciate fast especially those near main roads and towns. There is one prime one I have identified, 100M off the tarmac going for 1.5M. After securing that, I know 900K cannot do much, maybe just a wall round the plot, stima, septic and the slab for the 1st row of houses. If lucky, maybe get to squeeze in the structure for the 1st bedsitter/site house.
Reason I was looking for an alternative that I can use to grow the 900k. Secure that plot for 1.5m ,the 900k balance is more than sufficient for You to start a commercial activity in that plot like chicken farming and a small mabati structure for Your worker. The revenue You get should be enough to pay the monthly installments.
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Rank: Member Joined: 6/21/2010 Posts: 345 Location: easto
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josimar wrote:
Secure that plot for 1.5m ,the 900k balance is more than sufficient for You to start a commercial activity in that plot like chicken farming and a small mabati structure for Your worker. The revenue You get should be enough to pay the monthly installments.
@Josimar, Thanks for the advice. Am based in Nairobi and because i plan to have the project in Eldoret, it may be a challenge for me to manage it from a far. reason am avoiding anything i will have to manage remotely "The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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Rank: Member Joined: 5/31/2009 Posts: 226
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Thanks T9 MY experience with cars car imports spans 12years its never gotten worse since 2003 when i imported the first car. It takes a while to bUILD contacts and trust but the time is now to start. I easily sell cars through my trusted line of refferals without seeking new business. Unfortunately mine comes with consultation fees just like when u visit the experienced dentist or cardiologist but its very good bussiness when u get aligned well. josimar wrote:Quote:@Premio, thanks so much for your advice. I follow your threads about cars and I was even planning to ask for professional advice about the it outside of wazua. I know some freshmen in it, who actually are hacking it, but you seem so seasoned.
The reason I wanted to secure the plot is I know they appreciate fast especially those near main roads and towns. There is one prime one I have identified, 100M off the tarmac going for 1.5M. After securing that, I know 900K cannot do much, maybe just a wall round the plot, stima, septic and the slab for the 1st row of houses. If lucky, maybe get to squeeze in the structure for the 1st bedsitter/site house.
Reason I was looking for an alternative that I can use to grow the 900k. Secure that plot for 1.5m ,the 900k balance is more than sufficient for You to start a commercial activity in that plot like chicken farming and a small mabati structure for Your worker. The revenue You get should be enough to pay the monthly installments.
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Rank: Member Joined: 6/21/2010 Posts: 345 Location: easto
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premio wrote:
Thanks T9 MY experience with cars car imports spans 12years its never gotten worse since 2003 when i imported the first car. It takes a while to bUILD contacts and trust but the time is now to start. I easily sell cars through my trusted line of refferals without seeking new business. Unfortunately mine comes with consultation fees just like when u visit the experienced dentist or cardiologist but its very good bussiness when u get aligned well.
No issues @Premio. That is professional advice i'll be getting. I will plan a meeting soonest I clear with the plot stuff. I surely will go this route and hope to share my experience sometime later. "The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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