Wazua
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Has the real estate bubble burst????
Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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alma1 wrote:MugundaMan wrote:alma1 wrote:Wakanyugi don't worry. It's a problem we suffer as Kenyans. Direct translation.
Real estate, property means the same thing. House can be included in real estate, property. kaburoti is also real estate, property...
But Kenyans somehow confuse property with house. Nyumba. Forgetting that even stocks are property....sigh!! Alma, where has this been in dispute in this entire thread?  Wewe ni kengine who seems to just want to "talk" for the sake of talking. Wakanyugi tells you that flipping also means that you buy a kabruti and builds and sell. You insist that's developing. You quote wikipedia about "property"... I mean, English is difficult but not like that. Wakanyugi is totally correct. The flipping market has being going in Kenya for some time now. Unfortunately, even that market is fizzling out. Say it's a semantics issue. But if you go to ADD class of 1999, there is a thesis by a student who shall remain nameless that talks about buying and selling kabrutis as a flipping mechanism. How to profit from flipping etc. Lakini ninaona masomo kwako sio kitu cha rahisi. Kapish? And yes, I do enjoy watching you squirm in being uninformed. Call it my downtime. Wakanyugs is the one who quoted wiki so you do not even know who said what. Anyway, I give up. I will let sensible people determine what flipping is instead of debating some of you cretins who talk much but say zero on the issue of real estate. https://www.youtube.com/...query=flipping+property
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Rank: Veteran Joined: 7/3/2007 Posts: 1,635
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MugundaMan wrote:alma1 wrote:MugundaMan wrote:alma1 wrote:Wakanyugi don't worry. It's a problem we suffer as Kenyans. Direct translation.
Real estate, property means the same thing. House can be included in real estate, property. kaburoti is also real estate, property...
But Kenyans somehow confuse property with house. Nyumba. Forgetting that even stocks are property....sigh!! Alma, where has this been in dispute in this entire thread? Wewe ni kengine who seems to just want to "talk" for the sake of talking. Wakanyugi tells you that flipping also means that you buy a kabruti and builds and sell. You insist that's developing. You quote wikipedia about "property"... I mean, English is difficult but not like that. Wakanyugi is totally correct. The flipping market has being going in Kenya for some time now. Unfortunately, even that market is fizzling out. Say it's a semantics issue. But if you go to ADD class of 1999, there is a thesis by a student who shall remain nameless that talks about buying and selling kabrutis as a flipping mechanism. How to profit from flipping etc. Lakini ninaona masomo kwako sio kitu cha rahisi. Kapish? And yes, I do enjoy watching you squirm in being uninformed. Call it my downtime. Wakanyugs is the one who quoted wiki so you do not even know who said what. Anyway, I give up. I will let sensible people determine what flipping is instead of debating some of you cretins who talk much but say zero on the issue of real estate. https://www.youtube.com/...query=flipping+property
As AA would say: Hii kisungu ulikuja na meli yawa. Have a good day "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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Is this a joke or what? LINKDumb money becomes dumb only when it listens to smart money
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Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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Fyatu wrote:Is this a joke or what? LINK I stopped reading this article when I reached "the supply of houses exceeds demand"
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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When are these prices collapsing, really? I have see so many apartments still coming up, currently. Some going for prices as high as 30M for an apartment. Weird, on one side its being said the prices are coming down and that sector is collapsing. On the other side, millions are being poured into similar projects and being quoted at very high prices. What is actually happening?
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Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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washiku wrote:When are these prices collapsing, really?
I have see so many apartments still coming up, currently. Some going for prices as high as 30M for an apartment. Weird, on one side its being said the prices are coming down and that sector is collapsing. On the other side, millions are being poured into similar projects and being quoted at very high prices.
What is actually happening? Some projects were already in progress and these will likely be completed. There is little value in an incomplete project to the developer or financier. What will be interesting to see is how many NEW projects broke ground in 2H 2018. Why are they being quoted at crazy high prices? That's known as "stickiness" Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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VituVingiSana wrote:washiku wrote:When are these prices collapsing, really?
I have see so many apartments still coming up, currently. Some going for prices as high as 30M for an apartment. Weird, on one side its being said the prices are coming down and that sector is collapsing. On the other side, millions are being poured into similar projects and being quoted at very high prices.
What is actually happening? Some projects were already in progress and these will likely be completed. There is little value in an incomplete project to the developer or financier. What will be interesting to see is how many NEW projects broke ground in 2H 2018. Why are they being quoted at crazy high prices? That's known as "stickiness" We have some huge projects breaking ground as late as Dec 2018. Why would investors continue to pour money into such projects if the returns looks unlikely?
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Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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washiku wrote:VituVingiSana wrote:washiku wrote:When are these prices collapsing, really?
I have see so many apartments still coming up, currently. Some going for prices as high as 30M for an apartment. Weird, on one side its being said the prices are coming down and that sector is collapsing. On the other side, millions are being poured into similar projects and being quoted at very high prices.
What is actually happening? Some projects were already in progress and these will likely be completed. There is little value in an incomplete project to the developer or financier. What will be interesting to see is how many NEW projects broke ground in 2H 2018. Why are they being quoted at crazy high prices? That's known as "stickiness" We have some huge projects breaking ground as late as Dec 2018. Why would investors continue to pour money into such projects if the returns looks unlikely? Each project is different BUT I do not know why anyone, especially if it is financed at commercial interest rates, would build today. That said: 1) Some projects may have been leased/sold a good %. Off-plan. Sarit Center has snagged Carrefour as a tenant and is building out 2-3x the current space. Also a hotel in the works. 2) Some projects may take a few years and the developers are banking on demand returning/normalizing e.g. Serena Nairobi is expanding. 3) Some projects are "unique" eg a hospital eg Nairobi Hospital or serve a captive market. What I do not understand is why would folks borrow at 13% to get a rental yield of 6% on residential projects. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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VVS wrote:
We have some huge projects breaking ground as late as Dec 2018. Why would investors continue to pour money into such projects if the returns looks unlikely?
Each project is different BUT I do not know why anyone, especially if it is financed at commercial interest rates, would build today.
That said:
1) Some projects may have been leased/sold a good %. Off-plan. Sarit Center has snagged Carrefour as a tenant and is building out 2-3x the current space. Also a hotel in the works.
2) Some projects may take a few years and the developers are banking on demand returning/normalizing e.g. Serena Nairobi is expanding.
3) Some projects are "unique" eg a hospital eg Nairobi Hospital or serve a captive market.
What I do not understand is why would folks borrow at 13% to get a rental yield of 6% on residential projects.
1. But who says everyone who develops a project takes a loan. 2. And who says rental yield is the only profit center in any real estate investment? 
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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MugundaMan wrote:1. But who says everyone who develops a project takes a loan. 2. And who says rental yield is the only profit center in any real estate investment? I think this is from the owner's/landlord's perspective...
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Has the real estate bubble burst????
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