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Kenyans’ obsession with owning property doesn’t always lead to a handsome reward
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Seles83
#11 Posted : Tuesday, April 05, 2011 2:12:09 PM
Rank: Member

Joined: 11/9/2007
Posts: 288
Location: OZ
2012 wrote:
Seles83 wrote:
What happened to Denis Prit appartment, no tenant or the guy bought it off the plan..


At that time they were doing final touches which were deterring tenants from taking up the apartments and that area has quite a number of empty apartments competing. Also, most of them were unwilling to pay 65k and were offering 60k.


Thanks for info..i am evaluating between acquiring another appartment is up market area..or another middle income area apartment..Just getting concern with high vacancy rate..


More monies, more problems...
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Seles83
#12 Posted : Tuesday, April 05, 2011 2:14:16 PM
Rank: Member

Joined: 11/9/2007
Posts: 288
Location: OZ
young wrote:
The bottom line is one has to do a rethink of investing in real estate as a retailer by mortgage financing .

It does not pay because the rental income is always far lower than the monthly mortgage payment as the property prices appreciates faster than the rental income.

Besides the interest rate for mortgage is very high. Most cases for a mortgage loan of 5 Million ksh an investor is likely to pay back 12 Million Ksh or more over 15 years.

I do not subscribe to mortgage as a way of investing in real estate.

Also make no mistake about it, you CANNOT compare investing in real estate to bonds. In bonds the capital invested is static though the initial returns is higher but if you have your capital the value of your property will be increasing , so investing in real estate is better on the long term , as it is a hedge against inflation.


I totally agree with you there...to make it in Real Estate..Good debt plays a major role..thats why i am up for responsible lending..
More monies, more problems...
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Afroknight
#13 Posted : Tuesday, April 05, 2011 7:48:07 PM
Rank: New-farer

Joined: 3/28/2011
Posts: 17
Location: Nairobi
Most people gather information before investing and I am persuaded your people did so.


I was advised by a reknown finacial advisor that a mortgage for the first home you build is interest free!!!!!. Thats true. Keep the records of your interest payment then claim it from KRA at the end of the year.
I do not know how many people have tried this or whether it still works.I sure would like to know somebody who has tried.

This means that if you borrow 5m, you might repay 12m at the end of 20yrs, but again you ultimately repay only the 5m borrowed ( minus a few hidden charges), the rest shall be repaid by KRA. No loss since that is all your money.



Above all alse, Guard thine heart with all diligence, because from it are issues of life... Prov4:23. Email: afroknight@ymail.com or domainagencies@yahoo.com
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youcan'tstopusnow
#14 Posted : Tuesday, April 05, 2011 7:59:26 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Afroknight wrote:
Most people gather information before investing and I am persuaded your people did so.


I was advised by a reknown finacial advisor that a mortgage for the first home you build is interest free!!!!!. Thats true. Keep the records of your interest payment then claim it from KRA at the end of the year.
I do not know how many people have tried this or whether it still works.I sure would like to know somebody who has tried.

This means that if you borrow 5m, you might repay 12m at the end of 20yrs, but again you ultimately repay only the 5m borrowed ( minus a few hidden charges), the rest shall be repaid by KRA. No loss since that is all your money.




Can someone confirm or refute this?
GOD BLESS YOUR LIFE
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For Sport
#15 Posted : Tuesday, April 05, 2011 8:36:02 PM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
youcan'tstopusnow wrote:
Afroknight wrote:
Most people gather information before investing and I am persuaded your people did so.


I was advised by a reknown finacial advisor that a mortgage for the first home you build is interest free!!!!!. Thats true. Keep the records of your interest payment then claim it from KRA at the end of the year.
I do not know how many people have tried this or whether it still works.I sure would like to know somebody who has tried.

This means that if you borrow 5m, you might repay 12m at the end of 20yrs, but again you ultimately repay only the 5m borrowed ( minus a few hidden charges), the rest shall be repaid by KRA. No loss since that is all your money.




Can someone confirm or refute this?


See here: (Gordon Gekko & erifloss). http://www.wazua.com/for...spx?g=posts&t=11424
I'm certain the position hasnt changed.
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muganda
#16 Posted : Tuesday, April 05, 2011 8:44:08 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
So interesting the article and comments - true wealth of knowledge. The writer may be on to something:

Logic:
But if as the nature of the scorpion, an investor in property does not sell; capital appreciation does not come in and hence the argument for 'hedge against inflation'

At a certain level though, writer disparages argument of 'rental income', often cited as key attraction for property investment versus other asset classes.


@Afroknight, correction:
2007 PAYE guide http://www.revenue.go.ke...df/PAYEGUIDE11-1-07.pdf stipulates Home Ownership Savings Plan allowing for
-up to KShs 4,000 funds deduction per month if house payment via employee payslip.
-up to KShs 12,500 interest deduction per month for owner occupier.
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Seles83
#17 Posted : Wednesday, April 06, 2011 3:07:17 PM
Rank: Member

Joined: 11/9/2007
Posts: 288
Location: OZ
One thing i find a little bit intriguing, government always encourages people to be in debt. Tax relief for those in debt and really hammered for making money.. "Read dividends, interest income....etc". Good for us we dont have capital gain taxes...

Take Advantage of the situation...
More monies, more problems...
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jamplu
#18 Posted : Monday, October 17, 2011 8:21:32 AM
Rank: Veteran

Joined: 3/25/2010
Posts: 939
Location: Nai

i came across this in the business daily!!
are we obsessed or possessed Laughing out loudly Laughing out loudly

http://www.businessdaily...90/-/9xr595/-/index.html
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jesski
#19 Posted : Monday, October 17, 2011 9:10:07 AM
Rank: New-farer

Joined: 9/14/2011
Posts: 23
Location: Kenya
Its normal i think

God can be realized through all paths. All religions are true. The important thing is to reach the roof. You can reach it by stone stairs or by wooden stairs or by bamboo steps or by a rope. You can also climb up by a bamboo pole.
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Cde Monomotapa
#20 Posted : Monday, October 17, 2011 9:14:58 AM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
This mentality is what is going to make us super, super rich via KCB S&L. Roar!! Laughing out loudly Laughing out loudly
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