wazua Fri, Apr 19, 2024
Welcome Guest Search | Active Topics | Log In | Register

35 saccos sign up to offer interest-free house loans
Options
Previous Topic · Next Topic
incognito
#1 Posted : Friday, July 21, 2017 10:20:24 AM
Rank: Member


Joined: 6/29/2011
Posts: 233
Quote:
A group of 35 savings and credit co-operative societies (saccos) has unveiled a housing loans plan in which their members will get interest-free mortgages.

The scheme dubbed Africa Tenancy Purchase Initiative will see credit union members pay an upfront deposit of 10 per cent of the cost of a unit and then pay the balance in “rent” instalments for up to 20 years.


Daily Nation Link



Applause Applause

Noble idea. Is it already happening? Which saccos?
Excelsior
Back to top
 Report Abusive | Report SPAM | Edit by user: Friday, July 21, 2017 10:21 AM | Reason: Not specified
Ryko
#2 Posted : Friday, July 21, 2017 11:23:55 AM
Rank: Member


Joined: 5/27/2016
Posts: 274
Location: Pub
This guys are very smart, they have studied the market and realized the middle class are paying good rent...but not buying the houses. If they don't grasp this people and tie their hands for 18 years+ their houses will not have buyers.

Instead of missing out on house buyers and ending up with tenants or empty houses, they have sweetened the deal by choosing the tenancy purchase as a PLAN B so as to survive this market. Good strategy. Apa wengi watanaswa.
I work so I can afford the amount of alcohol required to continue going to work
Back to top
 Report Abusive | Report SPAM
Shak
#3 Posted : Friday, July 21, 2017 1:10:46 PM
Rank: Elder


Joined: 2/22/2009
Posts: 2,449
Location: Africa
Ryko wrote:
This guys are very smart, they have studied the market and realized the middle class are paying good rent...but not buying the houses. If they don't grasp this people and tie their hands for 18 years+ their houses will not have buyers.

Instead of missing out on house buyers and ending up with tenants or empty houses, they have sweetened the deal by choosing the tenancy purchase as a PLAN B so as to survive this market. Good strategy. Apa wengi watanaswa.

Good deal. I wish they could tell us which Saccos are part of this
Back to top
 Report Abusive | Report SPAM
murchr
#4 Posted : Friday, July 21, 2017 4:34:27 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,979
Shak wrote:
Ryko wrote:
This guys are very smart, they have studied the market and realized the middle class are paying good rent...but not buying the houses. If they don't grasp this people and tie their hands for 18 years+ their houses will not have buyers.

Instead of missing out on house buyers and ending up with tenants or empty houses, they have sweetened the deal by choosing the tenancy purchase as a PLAN B so as to survive this market. Good strategy. Apa wengi watanaswa.


Good deal. I wish they could tell us which Saccos are part of this


If you read the article you would know
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
Back to top
 Report Abusive | Report SPAM
Swenani
#5 Posted : Friday, July 21, 2017 5:09:00 PM
Rank: User


Joined: 8/15/2013
Posts: 13,236
Location: Vacuum
murchr wrote:
Shak wrote:
Ryko wrote:
This guys are very smart, they have studied the market and realized the middle class are paying good rent...but not buying the houses. If they don't grasp this people and tie their hands for 18 years+ their houses will not have buyers.

Instead of missing out on house buyers and ending up with tenants or empty houses, they have sweetened the deal by choosing the tenancy purchase as a PLAN B so as to survive this market. Good strategy. Apa wengi watanaswa.


Good deal. I wish they could tell us which Saccos are part of this


If you read the article you would know


They have only mentioned a few out of the 35
If Obiero did it, Who Am I?
Back to top
WWW
 Report Abusive | Report SPAM
quicksand
#6 Posted : Friday, July 21, 2017 7:52:10 PM
Rank: Veteran


Joined: 7/5/2010
Posts: 2,061
Location: Nairobi
In other related news, one sacco is buying and consolidating its members' commercial bank loans.
What do they know that we don't? All the same, its a very welcome move. Open season on banks, I am cackling with glee...
Back to top
WWW
 Report Abusive | Report SPAM | Edit by user: Friday, July 21, 2017 7:53 PM | Reason: Not specified
Gathige
#7 Posted : Sunday, July 23, 2017 5:34:54 PM
Rank: Elder


Joined: 3/29/2011
Posts: 2,242
quicksand wrote:
In other related news, one sacco is buying and consolidating its members' commercial bank loans.
What do they know that we don't? All the same, its a very welcome move. Open season on banks, I am cackling with glee...



Its about both growing their loan book ( hence more interest income ) and the refinancing fee which can be high when they buy the expensive loan and substitute it with a SACCO loan at mostly 12% interest income. For the well managed SACCOs, the risk is minimal due to the common bond principle and members loyalty. Most SACCOS have become very innovative and creative and are sitting on deposits that would rival those of lower tier banks.
"Things that matter most must never be at the mercy of things that matter least." Goethe
Back to top
 Report Abusive | Report SPAM
Mike Ock
#8 Posted : Monday, July 24, 2017 5:40:00 AM
Rank: Member


Joined: 1/22/2015
Posts: 682
They're probably baking in the potential interest into the list price. Interest is there for a good reason guys, Finance 101
Back to top
WWW
 Report Abusive | Report SPAM
Eng. Kamau
#9 Posted : Tuesday, July 25, 2017 5:49:05 AM
Rank: New-farer


Joined: 12/14/2010
Posts: 30
Is there a product in the kenyan property market that offers a 5 years interest free instalments and no deposit to purchase a plot from a private seller with a clean title?
Precise, verified and certified details.
Back to top
 Report Abusive | Report SPAM
Gathige
#10 Posted : Tuesday, July 25, 2017 6:14:56 AM
Rank: Elder


Joined: 3/29/2011
Posts: 2,242
Eng. Kamau wrote:
Is there a product in the kenyan property market that offers a 5 years interest free instalments and no deposit to purchase a plot from a private seller with a clean title?


Islamic Banking
"Things that matter most must never be at the mercy of things that matter least." Goethe
Back to top
 Report Abusive | Report SPAM
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Groups Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2024 Wazua.co.ke. All Rights Reserved.