Now that sort of fellow is refferd to as an intelligent investor. Might I add that the mortgage sector is yet to fully emerge owing to the unwinding liquidity squeeze? LoL! We all know how availability of and access to affordable credit has boosted Kenya's economy post-2002

WWGKD?

1. I would build the damn thing for 10m in a company name. The assumption here is that i had 10m in cash. I wouldn't get a bank loan @ 14%plus for such a project.

2. I would sell my car for 1.5m. I would then buy a company car for a similar amount and let the "employees/tenants" work to make the repayments. I would also get a post paid fuel card, and charge the company for any service, insurance etc.

3. If this is not yet 100k, I would find yet another way of expensing the income before KRA gets to it.

4. Every cent of the company money I spend, I invest (from my other income). It can be in the same company as "new capital from shareholders" or just in my personal CDS / savings account doesn't really matter as long as I DON'T spend it as well.

You can pay as low a tax as you are smart, just be careful to do it LEGALLY, consult a lawyer if u have to. KRA guys are not kind to smart people.

The Principal here is to spend and invest before you are taxed.

Companies pay taxes on profits (Income less expense), natural persons pay taxes on Gross Income. All tax systems are flawed this way.

The taxman will audit you but all you have to do is justify the expenses.

You can even buy airtime before paying taxes if u are smart enough.

Even booze for "clients"...

The only substantial amount of money i make in my own name is my salo which is taxed at source

i thouht you dont pay any tax on rental flats?

Good question

Most people dont pay tax on rental income but it is liable to taxation. This is one of the many places where kra loses lots of revenue...btw, are capital gains on shares taxable?

This article, entitled "How to maximise rental income on an eighth-acre piece of land" seems relevant to this discussion. Here is the link.

http://www.nairobistar.c...ghth-acre-piece-of-land

I support this thinking also. Mark you for the stocks you also need to put alot of effort in research in order to find out what to buy or sell or hold.

The matter at hand, 10M investment with 100k return per month. Removing cost of running the investment, it will take say 10 years to pay back you initial capital. At that point (10yrs later) your 10M property is worth at least 18M. And with those cash flows, the banks will be willing to give you more money to build another after a few years. A good investment it is.

Your friend Warren doesn't make much of an effort either... if I were him I'd have tried to pay 7.7% or less!

I'm sure it will make more sense when I make more money... good practice though... and the system is on my side!