2012 wrote:Can one apply and get a mortgage from Europe or the US to buy property here in Kenya?
We are a poor nation accessing mortgages at 15% while Americans a first world country accesses at 4.21% on a period of up to 30yrs!
Now why can't I get a mortgage from an American bank @6-8% and not feed our greedy banks?
@2012 - This question has bugged me for years!!! But unlike you, I have never explored it further. I just dismissed my thoughts [unfortunately!!!]. I just imagined a couple of things: -
1) C.B.K. must wary of an influx of 'foreign' cash into Kenya because it would definitely have a huge impact on inflation and must have measures to avoid this.
2) The foreign lender might be reluctant to lend to someone in Kenya - or any other developing country - because the associated risk is higher. It would also be a logistical nightmare to chase up defaulters thinly distributed all over the world.
3) If it were possible, most large scale developers would be sourcing funds externally. Most of them still source locally though it must have occurred to them they can source externally.
To be honest I didn't do my homework - preliminary analysis discouraged me - but I'm glad you are. Kindly report your findings - they will be very helpful. If it is possible then building flats all over Nairobi will be a walk in the park. Given the rents in Nairobi, the flats will be repaying their own mortgage and even leaving me something small for summit!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.