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Is Taking a Mortgage the WORST Decision Ever??
Rank: Member Joined: 9/27/2006 Posts: 506
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Has anyone dealt with the 105% mortgage financing from Housing Finance?
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Rank: Member Joined: 9/20/2007 Posts: 252
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Well said @ Angelica _ann!
Very practical view, different from the doomsayers and alarmist.
Next they will say dont take a car loan, development loan because of fundamentals, ROI, NPV blah blah fueled by their google driven wisdom!
I have also just taken a mortgage, plan is to clear it in 3-4 years and take another one.
In the meantime, some "know it all" is in a rented house, trying to save and build his palace. Only if they knew how time flies.
We must accept there is a price/cost to pay for money borrowed regard less of the use for the loan.
So unless your dad is often mentioned on "who owns Kenya", sign on the dotted line, work hard to repay in a few years and move one.
Otherwise jenga yako and let others be!
Asanteni
Part home owner (other part is owned by the bank, for now!)
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Rank: New-farer Joined: 4/12/2014 Posts: 36
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By the time one is completing their house after six years using 'salary', the costs of smiti, roofing, finishings, labour your own man hours, stress, security, pilferage etc etc will be close to 3 times the current costs. Going by current trend, the mortgaged house if well selected can be offloaded to recoup your cash or even at a profit, in the event you know what hits the fan. It’s what you learn after you think you know it all that counts.
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Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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mungaits wrote:Well said @ Angelica _ann!
Very practical view, different from the doomsayers and alarmist.
Next they will say dont take a car loan, development loan because of fundamentals, ROI, NPV blah blah fueled by their google driven wisdom!
I have also just taken a mortgage, plan is to clear it in 3-4 years and take another one.
In the meantime, some "know it all" is in a rented house, trying to save and build his palace. Only if they knew how time flies.
We must accept there is a price/cost to pay for money borrowed regard less of the use for the loan.
So unless your dad is often mentioned on "who owns Kenya", sign on the dotted line, work hard to repay in a few years and move one.
Otherwise jenga yako and let others be!
Asanteni
Part home owner (other part is owned by the bank, for now!) This is laughable, to say the least. Ati accelarate mortgage to 3-4 years.  A 9,000,000/- mortgage at 15% "accelerated" for 4 years would require one to be paying atleast 250,000/- monthly. A 9M house in Nairobi is ............ Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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Omena wrote:By the time one is completing their house after six years using 'salary', the costs of smiti, roofing, finishings, labour your own man hours, stress, security, pilferage etc etc will be close to 3 times the current costs.
Going by current trend, the mortgaged house if well selected can be offloaded to recoup your cash or even at a profit, in the event you know what hits the fan. Interesting to note that when i was putting up my house in Nairobi 4yrs ago, cement was 720 bob while now it's 650 bob. Cost of chumas has also gone down. Labour hasn't changed much, maybe up 10%. Cost of fittings (kitchens, bathrooms, lighting, mdfs etc) has actually come down, e.g. the bathroom faucets i bought at 8k 4yrs ago are now going at 4.5k at the 'Big Sale' at the Ideal Ceramics stores in Nairobi. I have even had to change the bath i installed in the master en suite into a jacuzzi after jacuzzi prices came down and became affordable. My wife and I had a few millions (savings plus selling 2 plots) which we used to buy land within Nairobi. Then we each took 5yr loans to put up a 5bdrm house, which we put up in 6 months and moved in. So next year we will be loan free. The good thing is that the house allowance from our employers is more than our loan repayments. If we had taken a mortgage to buy a 5bdrm house (with own compound) we would have been stuck/'mortgaged' for 20yrs paying over 200k pm. But next year we will be loan free, and we intend to take new loans and slowly develop some flats on a plot we own in kitengela. So hopefully within 10yrs, we will be owning a house and a block of flats giving us 400k pm. However, since all wazuans situations are different, i would advice that each takes the option that's best suited to them, whether short term loans or mortgages depending on their circumstances.
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Rank: Member Joined: 7/4/2010 Posts: 118
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Has someone dealt with KCB S&L? I have been trying to get information concerning a property on their website since Friday last week. I have called like 6 times. and each time i have been told 'the person who has that information is out' or is busy or has left. and today's response was classic. 'the person who has that information is not currently in, he is the only one with internet access so he is the only one who can see what properties our website has and therefore can advise on properties we have listed on our website'. Are you for real, there's only 1 guy at S&L with internet access who can see what S&L has put up on its website and therefore advise on these properties? Yoh! In 2014, are you serious KCB, S&L?
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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dunkang wrote:mungaits wrote:Well said @ Angelica _ann!
Very practical view, different from the doomsayers and alarmist.
Next they will say dont take a car loan, development loan because of fundamentals, ROI, NPV blah blah fueled by their google driven wisdom!
I have also just taken a mortgage, plan is to clear it in 3-4 years and take another one.
In the meantime, some "know it all" is in a rented house, trying to save and build his palace. Only if they knew how time flies.
We must accept there is a price/cost to pay for money borrowed regard less of the use for the loan.
So unless your dad is often mentioned on "who owns Kenya", sign on the dotted line, work hard to repay in a few years and move one.
Otherwise jenga yako and let others be!
Asanteni
Part home owner (other part is owned by the bank, for now!) This is laughable, to say the least. Ati accelarate mortgage to 3-4 years. A 9,000,000/- mortgage at 15% "accelerated" for 4 years would require one to be paying atleast 250,000/- monthly. A 9M house in Nairobi is ............ I think guys in here have lots of other sources of cash to fund this "acceleration" or its just theories
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Rank: Member Joined: 9/21/2007 Posts: 326
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too much hullaboo for nothing. the way i see it is - a house is not an investment, its simply a basic human need! it doesnt give you an income and costs you money to maintain but it gives you loads of peace. my advise when you are still young and stupid, please spare some money from colognes, mitumba cars, phombe and other midrro class niceties to put up a hood either through mortgage or whatever, just do it. Speak your truth quietly and clearly; and listen to others, even the dull and the ignorant; they too have their story.
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Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
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jaggernaut wrote:Omena wrote:By the time one is completing their house after six years using 'salary', the costs of smiti, roofing, finishings, labour your own man hours, stress, security, pilferage etc etc will be close to 3 times the current costs.
Going by current trend, the mortgaged house if well selected can be offloaded to recoup your cash or even at a profit, in the event you know what hits the fan. Interesting to note that when i was putting up my house in Nairobi 4yrs ago, cement was 720 bob while now it's 650 bob. Cost of chumas has also gone down. Labour hasn't changed much, maybe up 10%. Cost of fittings (kitchens, bathrooms, lighting, mdfs etc) has actually come down, e.g. the bathroom faucets i bought at 8k 4yrs ago are now going at 4.5k at the 'Big Sale' at the Ideal Ceramics stores in Nairobi. I have even had to change the bath i installed in the master en suite into a jacuzzi after jacuzzi prices came down and became affordable. My wife and I had a few millions (savings plus selling 2 plots) which we used to buy land within Nairobi. Then we each took 5yr loans to put up a 5bdrm house, which we put up in 6 months and moved in. So next year we will be loan free. The good thing is that the house allowance from our employers is more than our loan repayments. If we had taken a mortgage to buy a 5bdrm house (with own compound) we would have been stuck/'mortgaged' for 20yrs paying over 200k pm. But next year we will be loan free, and we intend to take new loans and slowly develop some flats on a plot we own in kitengela. So hopefully within 10yrs, we will be owning a house and a block of flats giving us 400k pm. However, since all wazuans situations are different, i would advice that each takes the option that's best suited to them, whether short term loans or mortgages depending on their circumstances.  This is the road to follow ....ati accelerate mortgage payments? with what? Business and economics are not always that benevolent, luck runs out or you fall on hard times ...deals zinakataa kuingiana au mabonus za job zinakatwa. Do not saddle yourself with colossal debt (when there are other options) hoping that 'windfall incomes' will save the day. And if they don't?
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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Mo wrote:too much hullaboo for nothing. the way i see it is - a house is not an investment, its simply a basic human need! it doesnt give you an income and costs you money to maintain but it gives you loads of peace.
my advise when you are still young and stupid, please spare some money from colognes, mitumba cars, phombe and other midrro class niceties to put up a hood either through mortgage or whatever, just do it. Yap  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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Is Taking a Mortgage the WORST Decision Ever??
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