Do people actually take up mortgages at those rates for income generating projects? Maybe if your goal is to just live in your own home and make repayments for the rest of your life. But as an investment otherwise, you do the math. You will not recover your initial investment in your lifetime. 19% is just too expensive.

Me agrees. Unless rental income is more or equal to mortgage=bad investment

Thanks Kamundu...how would you go about it given ..7m with a target of creating >42k passive income..

Having only ccess to diaspora facilities...no cheaper rate or on ground advantage...

Reasons why I prefer stocks to property If i put 7 m into lets say KCB at 25 I get 280,000 shares with a dividend of 1.85 for this year comes to ksh 580,000/= which works to Kshs 43,166/= per month. If you were lucky like some to get KCB at 15 your initial 7m is now worth 11.6m in less than a year plus 863,000/= in dividends. No wonder i still live in a rented house.quot; quot;

@ Seles.. If you fear stocks then you are better off first getting what you can with the 7M. Don't think about leverage due to the limitations of mortgage and so go for strategy 1.

I would say strategy 1 for I am allergic to leverages and its conditions.

My friend please avoid all the hustle and bustle of the rental market.. Its a waste of time and You will get a stroke for no reason..

Simply buy 275,000KCB shares or 17,500BAT shares..

On KCB you will earn 43k per month based on 2011 dividend and 60k per month based on 2012 dividend..

On BAT you will earn 44k per month based on 2011 dividend and 55k per month based on 2012 dividend..

Both returns are better than what you will ever find in the rental space!
There is no reason to get burnt in stocks especially if you treat them like rental units!

I have visited suraya in kiambu road, the interior is not the best, the kahouse was abit small selling at 11m...anyway they sell houses

I have a real estate development proposal for you. I have land for development in Ruaka and looking for partners to develop apartments (maximum 5 partners)depending on their investment. The current rate for a 2 bedroom apartment is on average 6.5m and a 3bed 7.5m. The rent per month is between kshs 20,00-30,0000. Ruaka is located on Limuru Road approx. 3km after Runda Estate gate.
There is High demand for rental residential space.
Close proximity to Gigiri UN- complex.(Mins)
Close proximity to The Village Market( 5mins), Parklands and
Westlands(10mins).
Near proposed centum investments runda close burn (2 mins)
Near proposed Agha khan university (2 mins)
Quick access to Thika Road and JKIA Airport through the Eastern by- pass.(1min)
Drop me an email if interested at njororay72@yahoo.co.uk for more
details.
All deals will be done above board using your lawyers and my
lawyers

sorry 87,500 gross income per month for the next 12 years. You could still be reinvesting your coupons as well which would give you additional cashflows to buy the land and shares. When you do come back you can sell the shares and build you flats. Remember the only price you need to lock is that of land. Building materials have a more transparent market compared to land and prices don't rise without a plan.