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35 saccos sign up to offer interest-free house loans
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incognito
#1 Posted : Friday, July 21, 2017 10:20:24 AM
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Joined: 6/29/2011
Posts: 233
Quote:
A group of 35 savings and credit co-operative societies (saccos) has unveiled a housing loans plan in which their members will get interest-free mortgages.

The scheme dubbed Africa Tenancy Purchase Initiative will see credit union members pay an upfront deposit of 10 per cent of the cost of a unit and then pay the balance in “rent” instalments for up to 20 years.


Daily Nation Link



Applause Applause

Noble idea. Is it already happening? Which saccos?
Excelsior
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Ryko
#2 Posted : Friday, July 21, 2017 11:23:55 AM
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Joined: 5/27/2016
Posts: 274
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This guys are very smart, they have studied the market and realized the middle class are paying good rent...but not buying the houses. If they don't grasp this people and tie their hands for 18 years+ their houses will not have buyers.

Instead of missing out on house buyers and ending up with tenants or empty houses, they have sweetened the deal by choosing the tenancy purchase as a PLAN B so as to survive this market. Good strategy. Apa wengi watanaswa.
I work so I can afford the amount of alcohol required to continue going to work
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Shak
#3 Posted : Friday, July 21, 2017 1:10:46 PM
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Joined: 2/22/2009
Posts: 2,449
Location: Africa
Ryko wrote:
This guys are very smart, they have studied the market and realized the middle class are paying good rent...but not buying the houses. If they don't grasp this people and tie their hands for 18 years+ their houses will not have buyers.

Instead of missing out on house buyers and ending up with tenants or empty houses, they have sweetened the deal by choosing the tenancy purchase as a PLAN B so as to survive this market. Good strategy. Apa wengi watanaswa.

Good deal. I wish they could tell us which Saccos are part of this
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murchr
#4 Posted : Friday, July 21, 2017 4:34:27 PM
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Joined: 2/26/2012
Posts: 15,980
Shak wrote:
Ryko wrote:
This guys are very smart, they have studied the market and realized the middle class are paying good rent...but not buying the houses. If they don't grasp this people and tie their hands for 18 years+ their houses will not have buyers.

Instead of missing out on house buyers and ending up with tenants or empty houses, they have sweetened the deal by choosing the tenancy purchase as a PLAN B so as to survive this market. Good strategy. Apa wengi watanaswa.


Good deal. I wish they could tell us which Saccos are part of this


If you read the article you would know
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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Swenani
#5 Posted : Friday, July 21, 2017 5:09:00 PM
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Joined: 8/15/2013
Posts: 13,236
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murchr wrote:
Shak wrote:
Ryko wrote:
This guys are very smart, they have studied the market and realized the middle class are paying good rent...but not buying the houses. If they don't grasp this people and tie their hands for 18 years+ their houses will not have buyers.

Instead of missing out on house buyers and ending up with tenants or empty houses, they have sweetened the deal by choosing the tenancy purchase as a PLAN B so as to survive this market. Good strategy. Apa wengi watanaswa.


Good deal. I wish they could tell us which Saccos are part of this


If you read the article you would know


They have only mentioned a few out of the 35
If Obiero did it, Who Am I?
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quicksand
#6 Posted : Friday, July 21, 2017 7:52:10 PM
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Joined: 7/5/2010
Posts: 2,061
Location: Nairobi
In other related news, one sacco is buying and consolidating its members' commercial bank loans.
What do they know that we don't? All the same, its a very welcome move. Open season on banks, I am cackling with glee...
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Gathige
#7 Posted : Sunday, July 23, 2017 5:34:54 PM
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Joined: 3/29/2011
Posts: 2,242
quicksand wrote:
In other related news, one sacco is buying and consolidating its members' commercial bank loans.
What do they know that we don't? All the same, its a very welcome move. Open season on banks, I am cackling with glee...



Its about both growing their loan book ( hence more interest income ) and the refinancing fee which can be high when they buy the expensive loan and substitute it with a SACCO loan at mostly 12% interest income. For the well managed SACCOs, the risk is minimal due to the common bond principle and members loyalty. Most SACCOS have become very innovative and creative and are sitting on deposits that would rival those of lower tier banks.
"Things that matter most must never be at the mercy of things that matter least." Goethe
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Mike Ock
#8 Posted : Monday, July 24, 2017 5:40:00 AM
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They're probably baking in the potential interest into the list price. Interest is there for a good reason guys, Finance 101
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Eng. Kamau
#9 Posted : Tuesday, July 25, 2017 5:49:05 AM
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Joined: 12/14/2010
Posts: 30
Is there a product in the kenyan property market that offers a 5 years interest free instalments and no deposit to purchase a plot from a private seller with a clean title?
Precise, verified and certified details.
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Gathige
#10 Posted : Tuesday, July 25, 2017 6:14:56 AM
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Joined: 3/29/2011
Posts: 2,242
Eng. Kamau wrote:
Is there a product in the kenyan property market that offers a 5 years interest free instalments and no deposit to purchase a plot from a private seller with a clean title?


Islamic Banking
"Things that matter most must never be at the mercy of things that matter least." Goethe
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