[quote=obiero]Good news keeps flowing http://www.businessdaily...1600-12ofq3u/index.html[/quote]

@obiero, courtesy of Innocent on the comment section. Nothing to add:

Does buying such apartments really make economic sense? Like if 2 bedroom is going for 6.5 million and average rent for such a house along Thika Rd is between 18k to 25k, let's do the math; 6,500,000 divide by average of 23,000 monthly rent comes to 282 months which is roughly 23.551 years. Does it make sense to commit 2 bed room rent of 23 years to buy a 2 bed room house that you can't live in for all that time? For instance people in their 29 years to around 35 years are already moving to bigger houses since some of them are already starting families. So who is the target market for these 2 bed room houses??? Guys below 28 years? Will they afford? And even if they could afford, does it make sense for them knowing in a just a few years they will need to move to bigger houses??

Let's consider another scenario, where someone buys the apartment to rent out. It's 6.5 million, rent we put at 23k, the payback is 23 years assuming 100% occupancy from the date of purchase to the 23rd year. 100% occupancy firstly is not possible, there will be a couple of months the house will be un-occupied and if you add up those months they could come to maybe even 2 years. So payback period of the house is 25 years, or even if we assume that rents will rise as years move, we can change the 25 years to be around 21 years when we assume the rent increase will reduce the payback period by around 4 years. So who is this investor investing in property that will payback the investment in 21 years???? I do not see any economic sense in undertaking these kinds of projects, or rather by putting purchase prices that high, or who are these buyers being targeted???

Capital Appreciation when there's a glut of apartments available and others coming up?
The "loan" isn't free. It costs 14% [at the minimum] when Rental Yields are only 6-8%.

If u can service a loan that size and can get a mortgage that size, you can get a loan that size too. Develop a property and sale or flip a property. Ile day Kenyans will realise how much house they can stretch their shillings for, there will be a revolution

House flipping is when real estate investors buy homes, usually at auction, and then resell them at a profit months down the road after undertaking renovations/improvements/modifications etc .

@Ebenyo @ VVS what your take on this counter-HFCK for a long term investor?is it worth any consideration? with the new face HF i think its a counter to look out for in the long term, whats your take

@Ebenyo @ VVS what your take on this counter-HFCK for a long term investor?is it worth any consideration? with the new face HF i think its a counter to look out for in the long term, whats your take

Buy HF and Sell Portland

http://www.nation.co.ke/.../-/eml2u7z/-/index.html



Interestingly, in the financial period, the real estate arm of HF, HF Development and Investment completed and sold 500 residential units in Komarock 5B, Precious Gardens Phase 1, Kahawa Downs, a retail commercial property known as K-Mall.

The development arm also initiated the construction of Komarock Heights Phase 1 development project which will comprise of 480 residential units.

Following the profit jump, HF announced a final dividend of Sh0.65 per cent, which brought the firm’s dividend payout for the 2015 financial period to a total of Sh1.3 per share.

Mr Maina says HF is entering a high growth phase boosted by the bank’s strategy of becoming a top tier bank by 2020 through corporate and retail banking, and mortgages.

BELOW FAIR VALUE

“Given its growth projects, the current price of around Sh20 per share is below its fair value and is recommended as a buy,” he says.

@ Ebenyo, where do you get these figures from? I had subscribed to MyStocks but i find they never update their figures. is there another website which has current and accurate figures?

Do you find the wazua figures accurate? and also where can one get the book value per share figures?