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Real Estate Investment strategy- Advice Needed
ChessMaster
#61 Posted : Monday, February 04, 2013 9:48:53 AM
Rank: Elder


Joined: 2/23/2009
Posts: 1,626
Seles83 wrote:
I decided on Hybrid (Real Estate and NSE)...i am back to stock market but with long term mindset (5yrs>>)..

I want to benefit from both fronts..


Can I ask why? I generally hear,even here on wazua once they have made enough money on the stock market they will shift to real estate.
Uncertainty is certain.Let go
ChumsQuest
#62 Posted : Tuesday, February 05, 2013 5:47:59 AM
Rank: Member


Joined: 1/24/2013
Posts: 325
guru267 wrote:
kaifastus wrote:
Stocks also give capital gains,but the risk levels are very high.


Risk is only high when you want to jump in & out of stocks...

1. If you buy and hold a blue chip stock yielding 10% in dividends for 10years just like you would a rental i believe the risk is minimal...

2. Dividends increases from blue chip stocks year on year will far outpace increase in the rent from your units.

3. The capital gains in stocks over 10 years far outpace those of real estate unless there is a global financial crisis! smile

4. Far, far, far less hustle in holding a stock as opposed to a rental unit

5. Tax benefits.. (5% dividend tax as opposed to 30% rental tax)

6. Far less paper work and risk of fraud in stocks as opposed to real estate!

7. Easier liquidity if a blue chip stock is selected.

@guru267, how about a thread for dummy stock investors, or Stocks/Bonds class101 for some of us who have no idea??? Would be very helpful....
ChumsQuest
#63 Posted : Tuesday, February 05, 2013 5:59:52 AM
Rank: Member


Joined: 1/24/2013
Posts: 325
mibbz wrote:
ChumsQuest wrote:
Seles83 wrote:
http://www.suraya.co.ke/index.php/property-in-kenya/ongoing-projects/the-lynx-mbagathi-road

Another Project from Suraya..Mbagathi Road...


CASH PRICES

APARTMENTS AUGUST 2012

TYPE SQM ACTUAL SALE PRICE TOTAL UNITS

1 BEDROOM Lynx 3 27 KSHS 3,200,000/=
60
2 BEDROOM
Lynx 4 38 KSHS 4,150,000/= 42
2 BEDROOM ENSUITE Lynx 5 42 KSHS 4,550,000/= 54


MORTGAGE BUYERS

10% DEPOSIT TO SURAYA SALES LTD.

90% MORTGAGE (APPROVED)
TYPE SQM ACTUAL SALE PRICE TOTAL UNITS

1 BEDROOM
Lynx 3 27 KSHS 3,600,000/= 60
2 BEDROOM
Lynx 4 38 KSHS 4,650,000/= 42
2 BEDROOM ENSUITE Lynx 5 42 KSHS 5,100,000/= 54

@seles @mibbz Say someone gets the 2 bed cash option for 4.15m,so no interest rates with plans to dispose of it in 2 yrs after completion, good plan?



Suraya is great as its location are prime for young families starting out. Only issue i have is the 2 bedroom is 38sqm; now multiply 38*35000 comes to 1330000. Meaning for location an 10 years service charge free am paying an extra near 2.8 Mil....but the value should go up to approx 6 Mil which is the market rate and rent in highrise region is 20k thus 480k a year...still thik its ok value for money

mibbz, never looked at stuff that way. Looks like Suraya is making a killing. Nonetheless, I guess once it's complete in 2014, the value will have appreciated by like a mil so I could cash out and remember the 35000persqm when investing next....I 'll try my luck is Stock investing I am just waiting for guru to start a stock101 thread....
Seles83
#64 Posted : Tuesday, February 05, 2013 3:18:24 PM
Rank: Member


Joined: 11/9/2007
Posts: 288
Location: OZ
ChessMaster wrote:
Seles83 wrote:
I decided on Hybrid (Real Estate and NSE)...i am back to stock market but with long term mindset (5yrs>>)..

I want to benefit from both fronts..


Can I ask why? I generally hear,even here on wazua once they have made enough money on the stock market they will shift to real estate.


I need stocks for capital velocity and i need real estate for cash flow..its that for simple for me...
More monies, more problems...
ChessMaster
#65 Posted : Tuesday, February 05, 2013 3:22:46 PM
Rank: Elder


Joined: 2/23/2009
Posts: 1,626
Seles83 wrote:
ChessMaster wrote:
Seles83 wrote:
I decided on Hybrid (Real Estate and NSE)...i am back to stock market but with long term mindset (5yrs>>)..

I want to benefit from both fronts..


Can I ask why? I generally hear,even here on wazua once they have made enough money on the stock market they will shift to real estate.


I need stocks for capital velocity and i need real estate for cash flow..its that for simple for me...


I think I see the sense in that. You can't catch opportunities if you don't have cashflow.
Uncertainty is certain.Let go
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