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Stocks vs Land (A 5 - 10 year window)
kingauwi
#11 Posted : Wednesday, March 31, 2010 9:41:42 AM
Rank: Member

Joined: 11/17/2009
Posts: 99

Land's good.

In stock exchange, as they say, you only put money that you are ready to loose.
First they ignore you, then they laugh at you, then they fight you, then you win!
the deal
#12 Posted : Wednesday, March 31, 2010 9:50:58 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
if u invest in land...invest in land...if u invest in stocks...invest in stocks...with every investment comes an attached risk...what if thika road becomes the new koinange street...will this be rosy as you say...
yekeyeke
#13 Posted : Wednesday, March 31, 2010 10:49:02 AM
Rank: Member

Joined: 6/4/2008
Posts: 345
@ the deal.
Since inaonekana unajua, pls educate us. What factors made koinange street what it is today? How is that risk factor connected to what is happeing on Thika Road?
I would like to know.
Fundaah
#14 Posted : Wednesday, March 31, 2010 10:55:12 AM
Rank: Elder

Joined: 11/19/2008
Posts: 1,267
ngo for rand....a good investment is in mortar and brick...2012 is a year to watch ....Land will go nowhere....but shares ....you will be left with worthless paper just incase something worse than 2007 happens.....Also Land prices have one direction only ..Up only...that is if you get all the paperwork right....
Isaiah 65:17-Look! I am creating new heavens and a new earth, and no one will even think about the old ones anymore
Gatheuzi
#15 Posted : Wednesday, March 31, 2010 12:12:41 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
I recently found myself in similar dilemma i.e. having to choose between land and stocks.

While land prices will go up, I opted into stocks for the following reasons:

1) The land I need is for personal residential needs. This implies I will not realize any gains in cash form even with a raise in land prices.
2) I will pay a higher price for the land in future yes, but the payment will be made from gains on stocks.
3) My current priorities is to build a portfolio that will yield returns from which I will get to purchase consumption items including building a house.

However, I may still consider land as an investment i.e. If I can buy land in Thika Rd and get 100% return over the next year, I can sell and repeat the process until I have enough to put up my house.

What I am not sure about is whether if the 8 lanes attract a huge population mass to live in Thika Rd., this might congest the corridor to the current state! In other words Kenyan's will have an even greater incentive to drive.

There was talk of railway being upgraded and this migh be the answer.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
yekeyeke
#16 Posted : Wednesday, March 31, 2010 3:41:52 PM
Rank: Member

Joined: 6/4/2008
Posts: 345
@ Gatheuzi
your thought are interesting. If 80K cars use this road today, getting another 80K cars in nairobi should not be difficult to make the jam situation the same way it is today.
But i think the rise in the cost of land and the rise in rents will untimately put some brakes to this, so people might just make it just right. 20 mins from town to home and vice-versa.
Land should go up by an average of 500% from todays proces to deter any steelrments and this in my opinion is posible. Very posible.
yekeyeke
#17 Posted : Wednesday, March 31, 2010 3:50:27 PM
Rank: Member

Joined: 6/4/2008
Posts: 345
Maich black

Leo nimeskia there is a person (not me) selling land next to the Ruiru bridge at 8m and acres. thats 4 m for a half and acre and 2 m for a quarter.

So as you can see the prices are going through thr roof. If you wait for another 2 months, this could go up to 4 mil for the 1/4 acres.
Your call.
2012
#18 Posted : Wednesday, March 31, 2010 4:05:54 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
MaichBlack wrote:
Supposing I wanted to build myself a house somewhere along Thika Road in say five to ten years, would it be advisable to buy the plot now and let it lie idle for those years


I would buy the land not because it's a good investment but because the piece of land you admire might not sit and wait for you if it's for building your dream home. But please note that this is not an investment and thus your intention for this land is not to invest.

BBI will solve it
:)
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