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The Housing Bubble in Kenya will Burst very soon....
bwenyenye
#61 Posted : Friday, March 11, 2011 3:35:30 PM
Rank: Elder


Joined: 5/24/2007
Posts: 1,805
Guys, one of us has identified the real problem in Kenya; infrastructure. Our infrastructure is very limited pushing guys to want to live in particular areas where they can live easily and so will pay a premium for it. The governmemt failed to plan on the expansion of Nairobi leading to areas where people have no amenities. A case in point is Syokimoau. This was once a sisal plantatation but is now a bustling estate. why? coz the govt, graded ( not tarmacked) the road and electricity was intalled. Just that!! It shows you how the demand for an organized place in in Kenya right now. The momment other areas are set up like that , then the options will be more and the prices may stagnate ( not come down) allowing the populace to catch up.

I hope the devolved constitutional power can solve this.
I Think Therefore I Am
erifloss
#62 Posted : Tuesday, March 22, 2011 8:08:21 AM
Rank: Member


Joined: 6/21/2010
Posts: 514
Location: Nairobi
Its truly a bubble...
www.businessdailyafrica....44/-/rdynki/-/index.html
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
Muthawamunene
#63 Posted : Tuesday, March 22, 2011 8:44:25 AM
Rank: Member


Joined: 1/3/2011
Posts: 264
Location: Nairobi

I sure hope i wont be in the bubble when it goes pop!!

9 year low
tony stark
#64 Posted : Tuesday, March 22, 2011 12:38:23 PM
Rank: Veteran


Joined: 7/8/2008
Posts: 947
I want to enquire about council house allotment.
Does the council allocate houses and when allocated/ sold do you get a title or an allotment letter?
Is an allotment letter usable with mortgage firms and banks for loan application? Can a council allotment letter be converted to a title deed that can then be used to get a loan???
Cheers
For Sport
#65 Posted : Tuesday, March 22, 2011 12:44:59 PM
Rank: Veteran


Joined: 12/23/2010
Posts: 1,229
I would be reluctant to advice anyone to wait for the much touted bubble to burst before they invest in property.

Are these ‘bubble’ statistics reflected
1. Across the country?
2. In all home ownership segments?

If not, we’re only waiting for a price correction in a few areas. And only after the pirates stop operating.
For Sport
#66 Posted : Tuesday, March 22, 2011 12:46:49 PM
Rank: Veteran


Joined: 12/23/2010
Posts: 1,229
Muthawamunene wrote:

I sure hope i wont be in the bubble when it goes pop!!

9 year low


Dont you worry, you wont be. You're not in the US
(your location is Nairobi)
kiriita
#67 Posted : Tuesday, March 22, 2011 12:51:28 PM
Rank: Member


Joined: 4/20/2008
Posts: 437
tony stark wrote:
I want to enquire about council house allotment.
Does the council allocate houses and when allocated/ sold do you get a title or an allotment letter?
Is an allotment letter usable with mortgage firms and banks for loan application? Can a council allotment letter be converted to a title deed that can then be used to get a loan???
Cheers


@stark,
- Allotment Letters are normally for undeveloped plots so I doubt you'd get one for a house. Indeed one of the conditions on the allotment is that you develop the plot.
- For a house developed by the council [ala Umoja], you'd normally get a lease with a certificate of lease as the title document.
- An allotment letter can not be used as security with a financier.
- An allotment letter can after some lengthy/complex process be 'converted' to a document of title which then can be used to secure financing.
- Take great caution with allotment letters [especially those from councils] - there have been cases of two or more people being issued with them in respect of the same property and such other drama.

Hope that helps.
tony stark
#68 Posted : Tuesday, March 22, 2011 1:05:08 PM
Rank: Veteran


Joined: 7/8/2008
Posts: 947
kiriita wrote:
tony stark wrote:
I want to enquire about council house allotment.
Does the council allocate houses and when allocated/ sold do you get a title or an allotment letter?
Is an allotment letter usable with mortgage firms and banks for loan application? Can a council allotment letter be converted to a title deed that can then be used to get a loan???
Cheers


@stark,
- Allotment Letters are normally for undeveloped plots so I doubt you'd get one for a house. Indeed one of the conditions on the allotment is that you develop the plot.
- For a house developed by the council [ala Umoja], you'd normally get a lease with a certificate of lease as the title document.
- An allotment letter can not be used as security with a financier.
- An allotment letter can after some lengthy/complex process be 'converted' to a document of title which then can be used to secure financing.
- Take great caution with allotment letters [especially those from councils] - there have been cases of two or more people being issued with them in respect of the same property and such other drama.

Hope that helps.

@ Kiirita thanks alot.
For the umoja house if you get a certificate of lease is it transferable?
Can it be used to secure a mortgage?
Thanks again for the advice.

erifloss
#69 Posted : Wednesday, March 23, 2011 2:39:46 PM
Rank: Member


Joined: 6/21/2010
Posts: 514
Location: Nairobi
Though its last year's report, its a good read. Make us know what 'foreigner's ' perceive of this real estate market!
http://www.businessinsid...eal-estate-market-2010-1
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
2012
#70 Posted : Wednesday, March 23, 2011 3:01:38 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
This bubble ain't bursting now but it will burst. In my layman prediction I see it happening 5-10yrs from now when the first lot of guys who got mortgages at 18% to buy 8m worth and above apartments in the leafy suburbs of Nairobi hit retirement age and start selling the houses cheaply to repay the banks and make a few shillings on top.

BBI will solve it
:)
Rahatupu
#71 Posted : Wednesday, March 23, 2011 3:28:56 PM
Rank: Veteran


Joined: 12/4/2009
Posts: 1,982
Location: matano manne
For Sport wrote:
I would be reluctant to advice anyone to wait for the much touted bubble to burst before they invest in property.

Are these ‘bubble’ statistics reflected
1. Across the country?
2. In all home ownership segments?

If not, we’re only waiting for a price correction in a few areas. And only after the pirates stop operating.


@Forsport,
This should not worry you. Why?
Pirates money is not credit money. Once the price correction occurs no burst like US case will be witnessed. Only those who paid for over priced units will feel the difference. So if you want to invest in property its advisable to avoid long term buying over priced units such as apartments in Kileleshwa, kilimani etc.
For Sport
#72 Posted : Wednesday, March 23, 2011 4:15:06 PM
Rank: Veteran


Joined: 12/23/2010
Posts: 1,229
Rahatupu wrote:
For Sport wrote:
I would be reluctant to advice anyone to wait for the much touted bubble to burst before they invest in property.

Are these ‘bubble’ statistics reflected
1. Across the country?
2. In all home ownership segments?

If not, we’re only waiting for a price correction in a few areas. And only after the pirates stop operating.


@Forsport,
This should not worry you. Why?
Pirates money is not credit money. Once the price correction occurs no burst like US case will be witnessed. Only those who paid for over priced units will feel the difference. So if you want to invest in property its advisable to avoid long term buying over priced units such as apartments in Kileleshwa, kilimani etc.


Kularaha, I'm not worried. I keep saying here there's no bubble. The problem in the housing market is limited to the areas you're pointing out (over pricing in upmarket areas in nbi). Our banks are too careful to loan you more than they think you qualify for.

The pirates money - meant that this is what might be driving the prices up. Correction only when its no longer there.
Rollins
#73 Posted : Wednesday, March 23, 2011 4:56:07 PM
Rank: Member


Joined: 3/23/2011
Posts: 503
I hope the Entry of Equity Bank will revolutinize the market. They should widen our options while.
Even a BrOKeN clock is right twice a day
jguru
#74 Posted : Thursday, November 24, 2011 9:30:16 AM
Rank: Veteran


Joined: 10/25/2007
Posts: 1,574
Vaunted property boom crumbling, warn analysts

http://www.nation.co.ke/...8/-/ta0q1u/-/index.html

Has the Housing Bubble finally burst?
Set out to correct the world's wrongs and you will most certainly wind up adding to them.
Lolest!
#75 Posted : Thursday, November 24, 2011 9:58:20 AM
Rank: Elder


Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
jguru wrote:
Vaunted property boom crumbling, warn analysts

http://www.nation.co.ke/...8/-/ta0q1u/-/index.html

Has the Housing Bubble finally burst?

it hasnt burst! The upward spiral in prices may dampen but I do not see this long-awaited burst happening
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
Kihangeri
#76 Posted : Thursday, November 24, 2011 10:01:42 AM
Rank: User


Joined: 11/10/2010
Posts: 550
Location: Junction
jguru wrote:
Vaunted property boom crumbling, warn analysts

http://www.nation.co.ke/...8/-/ta0q1u/-/index.html

Has the Housing Bubble finally burst?


I have always said Kenya should have been allowed to finish the PEV clashes that some idiots planned. That way, we would have avoided the bustard government we currently have which was created to ensure teh Kikuyu and Luo eating syndrome was protected at the expense of majority of Kenya citizens.

Right now, horse trading has reached a crescendo at NEEMA for the CEOs seat. The fight is between PNU and ODM (Jaluo and Kikuyu horse trading circus). It is not about qualification but my man getting the post so that we can eat together (Note, use of the word Kikuyu here means my clan, family and friends. These jobs are never given to oursiders although you are from the same tribe. Same applies to the Jaluo scenario).

NEEMA is a serious venue of resources and whoever controls it has plenty of cash to spread around. Otherwise, how long does it take to decide who has qualified for a job after the interview? KBF people they are.

Now, Orengo, being a child of the bustard establishment can only behave like one. These are the consequences of stopping a war which would have sorted out the mess created politicians and a valid government would have been eventually established. No country has ever fought to the last man. A stronger citizenry emerges from ruins of war as ppl grow to respect each other.

When PLO visited Orengo over corruption in the lands ministry, Orengo ensured PLO was constantly in trouble within ODM. PLO had failed to recognise that he got the KACC job courtesy of ODM. So, he was supposed to play ball. Now you know what a bustard government does.
By inference, the man is all that Mr Phantom is not: an untrustworthy radical, divisive, too many enemies, a dictator, and a persistent liar...
Gaitho dialogues.


TiggerTiggy
#77 Posted : Friday, November 25, 2011 10:58:03 AM
Rank: Veteran


Joined: 10/13/2011
Posts: 660
sometimes i wonder if some of those who write these articles own any real estate. i suspect many dont and are silently hoping against hope that prices come crashing down, so they can afford to buy.
ngapat
#78 Posted : Friday, November 25, 2011 9:48:41 PM
Rank: Member


Joined: 12/11/2006
Posts: 874
if very good shares can come down, so can good land and houses
“Invest in yourself. Your career is the engine of your wealth.”
eco
#79 Posted : Monday, June 11, 2012 1:27:10 AM
Rank: Member


Joined: 6/17/2011
Posts: 229
If such is what is referred to as a housing bubble burst, are we near anything like it in Nairobi and the rest of the Country?
subzero
#80 Posted : Wednesday, October 03, 2012 11:29:22 AM
Rank: Member


Joined: 1/10/2008
Posts: 365
CBK says that there is a sharp drop in the amount of forex inflows from unexplained sources since the military incursion in somalia

Any implications on the said 'property bubble' ?

http://www.businessdailyafrica.com/War+on+Al+Shabaab+cuts+flow+of+illicit+cash+into+economy/-/539552/1523560/-/qjbafbz/-/index.html
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