Wazua
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is it worth investing on rental flats?
Rank: Member Joined: 10/8/2010 Posts: 446 Location: london
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why invest 10m for 100k a month, surely there must be other ways you can earn that with less capital
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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With that kind of capital KK & KCB will give you a better income yield over time. I don't see what the obssesion with costly real estate is all about too.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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This is because annual company dividends can be raised by 20-50% with a good performing company whilst raising annual rents can be tricky, from my experience, as U are always doing so at the risk of tenant turnover/vacancies and taxes on dividends are only 5% 
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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african coloner wrote:why invest 10m for 100k a month, surely there must be other ways you can earn that with less capital That is a 12% return. (ksh 100K * 12)/ksh 10M. Which investment can beat that for such a passive and low risk investment?
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Gordon Gekko wrote:african coloner wrote:why invest 10m for 100k a month, surely there must be other ways you can earn that with less capital That is a 12% return. (ksh 100K * 12)/ksh 10M. Which investment can beat that for such a passive and low risk investment? Less how much in rates & taxes(30%)? We are talking strictly income without capital gains/losses upon sale in both asset classes.
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Rank: Member Joined: 6/17/2011 Posts: 229
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Gordon Gekko wrote:african coloner wrote:why invest 10m for 100k a month, surely there must be other ways you can earn that with less capital That is a 12% return. (ksh 100K * 12)/ksh 10M. Which investment can beat that for such a passive and low risk investment? Mwambie kweli......there is neither bears nor bulls, just solid income. And you don't have to run the show yourself.
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Rank: Member Joined: 12/2/2009 Posts: 299 Location: kenya
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Not forgetting the inherent risk in holding liquid assets such as stock.You can wake up one day and your 10m is worth shs.10.In real estates unless a natural calamity takes place such as tshunami(which can be covered via insurance)the trend is always upwards.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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U can ask the Western world if they still believe real estate prices can only go up or if there no capital losses or default risks on "safe" bonds. Basic investing knowledge informs us that all investment classes have cycles of boom & bust. 
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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popat wrote:Not forgetting the inherent risk in holding liquid assets such as stock.You can wake up one day and your 10m is worth shs.10. can you also wake up one day and your 10m stock is worth 20m?
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Over a solid 10 years of sterling GDP growth U will make better income and capital gains from good company stocks and that's a fact.
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is it worth investing on rental flats?
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