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119 masionettes in Kiambu County to be auctioned.
mikanjoroge
#1 Posted : Wednesday, February 07, 2018 4:29:01 AM
Rank: New-farer


Joined: 6/13/2016
Posts: 39
Location: kenya
According to businessdaily 119 maisonettes in Kiambu county are going to be auctioned on Feb 15th.
In addition apartment blocks worth Sh657 million will also be auctioned.
Does anyone have any more information on this story? Or the advert in the newspapers. Where can I find information on this and other auctions? Does anyone plan to attend? I am currently not in Nairobi. Thank you.

Link regarding story is below:
Is writing on the wall for high-end houses?

P.S, this is one of the ways the housing crash in U.S started. If there was an estate of say 100 houses going for 300K US dollars per market rate, then 5 people defaulted, then the bank sold those houses for say 250-280 (quick sale auction), then that meant the new value of all houses in that estate was now 250-280. So people stopped buying market houses and waiting for the cheaper auctions. The more the buyers waited the more the desperate sellers and developers reduced prices. The more house prices reduced and people defaulted, the more banks refused to lend and round and round it went. (forgive my many "thens"). Will this happen in Kenya? Maybe in high end. But not in low end.
murchr
#2 Posted : Wednesday, February 07, 2018 7:05:36 AM
Rank: Elder


Joined: 2/26/2012
Posts: 13,076
mikanjoroge wrote:
According to businessdaily 119 maisonettes in Kiambu county are going to be auctioned on Feb 15th.
In addition apartment blocks worth Sh657 million will also be auctioned.
Does anyone have any more information on this story? Or the advert in the newspapers. Where can I find information on this and other auctions? Does anyone plan to attend? I am currently not in Nairobi. Thank you.

Link regarding story is below:
Is writing on the wall for high-end houses?

P.S, this is one of the ways the housing crash in U.S started. If there was an estate of say 100 houses going for 300K US dollars per market rate, then 5 people defaulted, then the bank sold those houses for say 250-280 (quick sale auction), then that meant the new value of all houses in that estate was now 250-280. So people stopped buying market houses and waiting for the cheaper auctions. The more the buyers waited the more the desperate sellers and developers reduced prices. The more house prices reduced and people defaulted, the more banks refused to lend and round and round it went. (forgive my many "thens"). Will this happen in Kenya? Maybe in high end. But not in low end.



Wacha kudanganya watu bwana
"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
.
mikanjoroge
#3 Posted : Wednesday, February 07, 2018 8:20:11 AM
Rank: New-farer


Joined: 6/13/2016
Posts: 39
Location: kenya
Here is an article written by CNN dated Feb 22 2012 during housing crisis. And I quote one paragraph...

"Serving as a drag on existing home prices is a large inventory of homes in foreclosure. Distressed home sales, which includes homes in foreclosure and so-called short sales in which the home is sold for less than what is owed on the mortgage, made up 35% of sales in January."

Link: http://money.cnn.com/201...ate/home_sales/index.htm
heri
#4 Posted : Wednesday, February 07, 2018 8:49:23 AM
Rank: Member


Joined: 9/14/2011
Posts: 629
Location: nairobi
mikanjoroge wrote:
According to businessdaily 119 maisonettes in Kiambu county are going to be auctioned on Feb 15th.
In addition apartment blocks worth Sh657 million will also be auctioned.
Does anyone have any more information on this story? Or the advert in the newspapers. Where can I find information on this and other auctions? Does anyone plan to attend? I am currently not in Nairobi. Thank you.

Link regarding story is below:
Is writing on the wall for high-end houses?

P.S, this is one of the ways the housing crash in U.S started. If there was an estate of say 100 houses going for 300K US dollars per market rate, then 5 people defaulted, then the bank sold those houses for say 250-280 (quick sale auction), then that meant the new value of all houses in that estate was now 250-280. So people stopped buying market houses and waiting for the cheaper auctions. The more the buyers waited the more the desperate sellers and developers reduced prices. The more house prices reduced and people defaulted, the more banks refused to lend and round and round it went. (forgive my many "thens"). Will this happen in Kenya? Maybe in high end. But not in low end.


which bank is auctioning them?
murchr
#5 Posted : Wednesday, February 07, 2018 8:56:28 AM
Rank: Elder


Joined: 2/26/2012
Posts: 13,076
mikanjoroge wrote:
Here is an article written by CNN dated Feb 22 2012 during housing crisis. And I quote one paragraph...

"Serving as a drag on existing home prices is a large inventory of homes in foreclosure. Distressed home sales, which includes homes in foreclosure and so-called short sales in which the home is sold for less than what is owed on the mortgage, made up 35% of sales in January."

Link: http://money.cnn.com/201...te/home_sales/index.htm


Now go research on why homes went on foreclosure in the first place. Plus there's a whole discussion on wazua pull it up and read comment by comment
"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
.
mikanjoroge
#6 Posted : Wednesday, February 07, 2018 9:07:30 AM
Rank: New-farer


Joined: 6/13/2016
Posts: 39
Location: kenya
murchr wrote:
mikanjoroge wrote:
Here is an article written by CNN dated Feb 22 2012 during housing crisis. And I quote one paragraph...

"Serving as a drag on existing home prices is a large inventory of homes in foreclosure. Distressed home sales, which includes homes in foreclosure and so-called short sales in which the home is sold for less than what is owed on the mortgage, made up 35% of sales in January."

Link: http://money.cnn.com/201...te/home_sales/index.htm


Now go research on why homes went on foreclosure in the first place. Plus there's a whole discussion on wazua pull it up and read comment by comment


Sawa. I saw it earlier. Lets forget about it. Should not have brought it up.


Back to main question does anyone have the advert or details about story from this link? Please share. Couldn't find it:
Business daily article:

Is writing on the wall for high-end houses?
wukan
#7 Posted : Wednesday, February 07, 2018 12:31:14 PM
Rank: Member


Joined: 11/13/2015
Posts: 743
mikanjoroge wrote:
According to businessdaily 119 maisonettes in Kiambu county are going to be auctioned on Feb 15th.
In addition apartment blocks worth Sh657 million will also be auctioned.
Does anyone have any more information on this story? Or the advert in the newspapers. Where can I find information on this and other auctions? Does anyone plan to attend? I am currently not in Nairobi. Thank you.

Link regarding story is below:
Is writing on the wall for high-end houses?

P.S, this is one of the ways the housing crash in U.S started. If there was an estate of say 100 houses going for 300K US dollars per market rate, then 5 people defaulted, then the bank sold those houses for say 250-280 (quick sale auction), then that meant the new value of all houses in that estate was now 250-280. So people stopped buying market houses and waiting for the cheaper auctions. The more the buyers waited the more the desperate sellers and developers reduced prices. The more house prices reduced and people defaulted, the more banks refused to lend and round and round it went. (forgive my many "thens"). Will this happen in Kenya? Maybe in high end. But not in low end.


Thank you for your observation but wazua is nowadays an echo chamber for river-road economics, people love hearing their own thoughts.

To your main question, the auctioneers are valley auctioneers you can google them. Ask them about the Homex housing ltd houses in Kabete. There are actually no buyers for distressed homes and vehicles. I have seen some advertised like 5 times no buyers. Credit crunch is that bad.
more info
https://www.businessdail...4780-9lgsucz/index.html

hardwood
#8 Posted : Wednesday, February 07, 2018 3:34:35 PM
Rank: Elder


Joined: 7/28/2015
Posts: 7,044
I think the biggest problem for the company is the location of their developments. They forgot the no.1 rule in real estate development, which is location, location, location. I saw one of their developments somewhere near namanga and wondered who they were targeting, unless it is a retirement home.
Ericsson
#9 Posted : Wednesday, February 07, 2018 3:39:51 PM
Rank: Elder


Joined: 12/4/2009
Posts: 5,090
Location: NAIROBI
hardwood wrote:
I think the biggest problem for the company is the location of their developments. They forgot the no.1 rule in real estate development, which is location, location, location. I saw one of their developments somewhere near namanga and wondered who they were targeting, unless it is a retirement home.



They saw an opportunity and jumped into it.Problem is the opportunity they saw is not what the target market wanted
wukan
#10 Posted : Wednesday, February 07, 2018 3:57:04 PM
Rank: Member


Joined: 11/13/2015
Posts: 743
hardwood wrote:
I think the biggest problem for the company is the location of their developments. They forgot the no.1 rule in real estate development, which is location, location, location. I saw one of their developments somewhere near namanga and wondered who they were targeting, unless it is a retirement home.


You mean kitisuru is a bad locationd'oh! d'oh!
hardwood
#11 Posted : Wednesday, February 07, 2018 4:10:39 PM
Rank: Elder


Joined: 7/28/2015
Posts: 7,044
wukan wrote:
hardwood wrote:
I think the biggest problem for the company is the location of their developments. They forgot the no.1 rule in real estate development, which is location, location, location. I saw one of their developments somewhere near namanga and wondered who they were targeting, unless it is a retirement home.


You mean kitisuru is a bad locationd'oh! d'oh!


The development is somewhere in mwimuto, not kitisuru. Check their website. I believe that reduces the number of potential buyers.
mulla
#12 Posted : Wednesday, February 07, 2018 6:11:09 PM
Rank: Member


Joined: 6/15/2013
Posts: 229
hardwood wrote:
wukan wrote:
hardwood wrote:
I think the biggest problem for the company is the location of their developments. They forgot the no.1 rule in real estate development, which is location, location, location. I saw one of their developments somewhere near namanga and wondered who they were targeting, unless it is a retirement home.


You mean kitisuru is a bad locationd'oh! d'oh!


The development is somewhere in mwimuto, not kitisuru. Check their website. I believe that reduces the number of potential buyers.


Mwimuto is not a very enviable nor safe location, despite it neighbouring Kitisuru.
hardwood
#13 Posted : Wednesday, February 07, 2018 7:21:53 PM
Rank: Elder


Joined: 7/28/2015
Posts: 7,044
mulla wrote:
hardwood wrote:
wukan wrote:
hardwood wrote:
I think the biggest problem for the company is the location of their developments. They forgot the no.1 rule in real estate development, which is location, location, location. I saw one of their developments somewhere near namanga and wondered who they were targeting, unless it is a retirement home.


You mean kitisuru is a bad locationd'oh! d'oh!


The development is somewhere in mwimuto, not kitisuru. Check their website. I believe that reduces the number of potential buyers.


Mwimuto is not a very enviable nor safe location, despite it neighbouring Kitisuru.

Also I think we should give them credit for venturing into the area.Just like Suraya did targeting the periphery and transforming those areas. Mwimuto is next to kitisuru and "leafy" and thus has enormous potential as Nairobi expands.
Rahatupu
#14 Posted : Sunday, February 18, 2018 12:01:20 PM
Rank: Veteran


Joined: 12/4/2009
Posts: 1,921
Location: matano manne
116 non storey units on 5 acres means the plinth area of these houses is very small.
webish
#15 Posted : Tuesday, February 20, 2018 8:15:11 AM
Rank: Member


Joined: 10/19/2009
Posts: 666
Location: Nairobi
Rahatupu wrote:
116 non storey units on 5 acres means the plinth area of these houses is very small.


Very True.

Life is joy, death is peace, but the transition is very difficult.
Angelica _ann
#16 Posted : Tuesday, February 20, 2018 9:27:34 AM
Rank: Elder


Joined: 12/7/2012
Posts: 8,888
webish wrote:
Rahatupu wrote:
116 non storey units on 5 acres means the plinth area of these houses is very small.


Very True.


This was evident from the pictures of the massionattes. Yet from the adverts/selling point, the impression they were giving was that of spacious homes with nice grounds/lawns!!!! Part of their undoing.
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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