Wazua
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Am tired of paying rent!
Rank: Member Joined: 2/20/2007 Posts: 767
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tom_boy wrote:Swenani wrote:This argument is useless. Family home is NOT an investment but offers peace of mind.
In my view,young people tend to argue against homeownership but as they grow old they change their mindset.
True. Owning a home is a utility, not an investment. Young people get swayed to cross over because non have been diligent at saving and investing so at mid life they get the fear of losing out and quickly get a mortgage. I guarantee that if a person in their thirties was to purpose to save diligently an amount that hurts as much as a mortgage would hurt, put it in a mutual fund earning 8% interest, at 55yrs, they will be smiling more than the mortgage guy. Problem here is lack of discipline and single minded determination. If you want to really enjoy life, you must be ready to slog really hard and not enjoy the full benefits of your slogging for the first 25yrs of working. This means saving and investing every coin you can save. It means prudent life choices like who to marry, where to live, what car to drive, where kids should go to school. It means deliberately not keeping up with the Jonesses for many many many years. After all, at 55yrs, God willing, you will still have another 20yrs to enjoy your saved up chums. This applies to most people with so called middle class incomes. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Elder Joined: 3/19/2010 Posts: 3,505 Location: Uganda
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Impunity wrote:newfarer wrote:mortgage is a no no given the unstable economy that we have. today you have a good paying job tomorrow its no more.buy plot njega polepole.that way you can easily adjust to the circumstances. A plot in bundus is not worth living in...need an apartment in area which is safe and with neighbors. Building a plot the bundus where you cant even fence it properly us a kin to placing yourself as a sesting duck. wait till you lose that job or business takes a south direction.anything within 50 km of Nairobi isnt bundus punda amecheka
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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newfarer wrote:Impunity wrote:newfarer wrote:mortgage is a no no given the unstable economy that we have. today you have a good paying job tomorrow its no more.buy plot njega polepole.that way you can easily adjust to the circumstances. A plot in bundus is not worth living in...need an apartment in area which is safe and with neighbors. Building a plot the bundus where you cant even fence it properly us a kin to placing yourself as a sesting duck. wait till you lose that job or business takes a south direction.anything within 50 km of Nairobi isnt bundus 50km will be my ushago. 😂😂😂 Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Swenani wrote:This argument is useless. Family home is NOT an investment but offers peace of mind.
In my view,young people tend to argue against homeownership but as they grow old they change their mindset.
I disagree. A family home is also an investment. Let's say you want to live in runda where the rents are 250k per month. If you rent a home there you'd fork out 250k per month. But if you own a home there it saves you an expense of 250k per month unlike your renting neighbors. Your finances each month are +250k better because you own the home. Thus your home is actually putting 250k in your pocket each month. And you can use the 250k saved per month for other investments eg stocks, dustbowl etc Also if the kids are all grown up and moved out you can rent the place out at 250k pm and rent an apartment at eg westlands at 70k and use the 180k balance for sustenance. If you lost your job you'd do the same ie renting out the place and getting a cheaper house and the 250k rental income would help absorb the job loss shock unlike your renting neighbour who would be in a terrible situation. If you own a home you can use the property as security to acquire finance from banks and buy/develop more properties while a renter has no such options. Additionally if rezoning was done and runda was classified as a high density estate like happened to lavington, kilimani, kileleshwa etc the value of your 1/2 acre plot + home would shoot through the roof with tens of developers begging you to sell the property to them for redevelopment to high end apartments. Finally, when you go to the next world and your kids inherit your home, they will have a major head start unlike their "property-less" peers whose parents may have shunned home ownership and instead invested in KQ, HomeAfrica, ARM etc hoping to be multimillionaires in old age.
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Rank: Elder Joined: 6/23/2009 Posts: 14,318 Location: nairobi
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hardwood wrote:Swenani wrote:This argument is useless. Family home is NOT an investment but offers peace of mind.
In my view,young people tend to argue against homeownership but as they grow old they change their mindset.
I disagree. A family home is also an investment. Let's say you want to live in runda where the rents are 250k per month. If you rent a home there you'd fork out 250k per month. But if you own a home there it saves you an expense of 250k per month unlike your renting neighbors. Your finances each month are +250k better because you own the home. Thus your home is actually putting 250k in your pocket each month. And you can use the 250k saved per month for other investments eg stocks, dustbowl etc Also if the kids are all grown up and moved out you can rent the place out at 250k pm and rent an apartment at eg westlands at 70k and use the 180k balance for sustenance. If you lost your job you'd do the same ie renting out the place and getting a cheaper house and the 250k rental income would help absorb the job loss shock unlike your renting neighbour who would be in a terrible situation. If you own a home you can use the property as security to acquire finance from banks and buy/develop more properties while a renter has no such options. Additionally if rezoning was done and runda was classified as a high density estate like happened to lavington, kilimani, kileleshwa etc the value of your 1/2 acre plot + home would shoot through the roof with tens of developers begging you to sell the property to them for redevelopment to high end apartments. Finally, when you go to the next world and your kids inherit your home, they will have a major head start unlike their "property-less" peers whose parents may have shunned home ownership and instead invested in KQ, HomeAfrica, ARM etc hoping to be multimillionaires in old age. Anyone investing heavily in stocks prior to owning at least three homes, needs guidance COOP, IMH, KEGN, KQ, MTNU
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Rank: Member Joined: 12/22/2015 Posts: 224 Location: Mombasa, Kenya
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hardwood wrote:Swenani wrote:This argument is useless. Family home is NOT an investment but offers peace of mind.
In my view,young people tend to argue against homeownership but as they grow old they change their mindset.
I disagree. A family home is also an investment. Let's say you want to live in runda where the rents are 250k per month. If you rent a home there you'd fork out 250k per month. But if you own a home there it saves you an expense of 250k per month unlike your renting neighbors. Your finances each month are +250k better because you own the home. Thus your home is actually putting 250k in your pocket each month. And you can use the 250k saved per month for other investments eg stocks, dustbowl etc Also if the kids are all grown up and moved out you can rent the place out at 250k pm and rent an apartment at eg westlands at 70k and use the 180k balance for sustenance. If you lost your job you'd do the same ie renting out the place and getting a cheaper house and the 250k rental income would help absorb the job loss shock unlike your renting neighbour who would be in a terrible situation. If you own a home you can use the property as security to acquire finance from banks and buy/develop more properties while a renter has no such options. Additionally if rezoning was done and runda was classified as a high density estate like happened to lavington, kilimani, kileleshwa etc the value of your 1/2 acre plot + home would shoot through the roof with tens of developers begging you to sell the property to them for redevelopment to high end apartments. Finally, when you go to the next world and your kids inherit your home, they will have a major head start unlike their "property-less" peers whose parents may have shunned home ownership and instead invested in KQ, HomeAfrica, ARM etc hoping to be multimillionaires in old age. I like your train of thought. Only thing missing is how much it would cost you to acquire that home in Runda that pays you 250k in rent per month. Give me the number I'll give you the alternatives Start!
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Rank: Elder Joined: 6/23/2009 Posts: 14,318 Location: nairobi
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Metch wrote:hardwood wrote:Swenani wrote:This argument is useless. Family home is NOT an investment but offers peace of mind.
In my view,young people tend to argue against homeownership but as they grow old they change their mindset.
I disagree. A family home is also an investment. Let's say you want to live in runda where the rents are 250k per month. If you rent a home there you'd fork out 250k per month. But if you own a home there it saves you an expense of 250k per month unlike your renting neighbors. Your finances each month are +250k better because you own the home. Thus your home is actually putting 250k in your pocket each month. And you can use the 250k saved per month for other investments eg stocks, dustbowl etc Also if the kids are all grown up and moved out you can rent the place out at 250k pm and rent an apartment at eg westlands at 70k and use the 180k balance for sustenance. If you lost your job you'd do the same ie renting out the place and getting a cheaper house and the 250k rental income would help absorb the job loss shock unlike your renting neighbour who would be in a terrible situation. If you own a home you can use the property as security to acquire finance from banks and buy/develop more properties while a renter has no such options. Additionally if rezoning was done and runda was classified as a high density estate like happened to lavington, kilimani, kileleshwa etc the value of your 1/2 acre plot + home would shoot through the roof with tens of developers begging you to sell the property to them for redevelopment to high end apartments. Finally, when you go to the next world and your kids inherit your home, they will have a major head start unlike their "property-less" peers whose parents may have shunned home ownership and instead invested in KQ, HomeAfrica, ARM etc hoping to be multimillionaires in old age. I like your train of thought. Only thing missing is how much it would cost you to acquire that home in Runda that pays you 250k in rent per month. Give me the number I'll give you the alternatives Hehe. True. Flawed argument COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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[quote=hardwood]The debate spills to the Daily Nation.... https://www.nation.co.ke...77064-laoksl/index.html[/quote] This debate will never end, to each their own. We cannot all buy houses, you know  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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Rank: Elder Joined: 6/23/2009 Posts: 14,318 Location: nairobi
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I currently have five.. COOP, IMH, KEGN, KQ, MTNU
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