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To Those With Money, More Will Be Added!

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MaichBlack		#1 Posted : Monday, July 16, 2012 5:47:26 PM
Rank: Elder Joined: 7/22/2009 Posts: 7,468		Don't you just wish you could get a 1% mortgage??? Not 1% per month. 1% per year!!! 1% Mortgage!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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seppuku		#2 Posted : Monday, July 16, 2012 5:57:24 PM
Rank: Veteran Joined: 5/11/2010 Posts: 918		Damn! But the bible does say something to this effect, doesn't it? Learn first to treat your time as you would your money, then treat your money as you do your time.
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harrydre		#3 Posted : Tuesday, July 17, 2012 12:15:37 AM
Rank: Elder Joined: 7/10/2008 Posts: 9,131 Location: Kanjo		well the good book talks about GIVING...to those who give, more will be given.. The 1.05% may look small but that would be approximately Kshs 432,000.00pm in interest alone for atleast the first year. Don't you think that would silence miguu-nah for 2 months (think runda rent) i.am.back!!!!
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simonkabz		#4 Posted : Tuesday, July 17, 2012 12:41:07 AM
Rank: Elder Joined: 3/2/2007 Posts: 8,776 Location: Cameroon		TULIA.........UFUNZWE!
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MaichBlack		#5 Posted : Tuesday, July 17, 2012 9:25:58 AM
Rank: Elder Joined: 7/22/2009 Posts: 7,468		harrydre wrote: well the good book talks about GIVING...to those who give, more will be given.. The 1.05% may look small but that would be approximately Kshs 432,000.00pm in interest alone for atleast the first year. Don't you think that would silence miguu-nah for 2 months (think runda rent) 1.05% p.a. of whatever is DIRT CHEAP!!! It's below the inflation rate - even the American one. You are actually being paid to take the money!!! If we had such rates in Kenya, nobody would ever rent!!! Even if your rent is as low as 5k a month, you just take a 1.8m mortgage [which would afford you a better house than the one you are paying 5k a month] and at 1% rate, your repayments would be the same as your rent!!! Get it? At 25k a month, we are talking about 9m 30 year mortgage. That gets you a house in migaa. Right? And you continue paying 25k!!! Only that now you are living in a decent house with a compound instead of a fifth floor flat. And the "rent" is the same! And you ultimately own the house! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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MaichBlack		#6 Posted : Tuesday, July 17, 2012 9:31:13 AM
Rank: Elder Joined: 7/22/2009 Posts: 7,468		On a related note, how possible is it to get a mortgage from an American bank [or any foreign bank] to build/buy a house in Kenya??? I know the issue of the risk appetite of the bank and administration costs etc. come into question but what does the central bank rules say? It would be nice for a Kenyan bank to partner with a foreign lender in such a venture. The Kenyan bank does the "kazi ya mkono" and the foreign lender supplies the cheap money! They can start with low risk borrowers like @vvs, @Wendz etc. and with time, they can get to high risk borrowers like @qw, @magigi, @guka etc. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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seppuku		#7 Posted : Tuesday, July 17, 2012 3:40:54 PM
Rank: Veteran Joined: 5/11/2010 Posts: 918		harrydre wrote: well the good book talks about GIVING...to those who give, more will be given.. The 1.05% may look small but that would be approximately Kshs 432,000.00pm in interest alone for atleast the first year. Don't you think that would silence miguu-nah for 2 months (think runda rent) In "The Parable of Talents", the Bible says in Matthew Chapter 25 and Verse 29: "For the one who has will be given more, and he will have more than enough. But the one who does not have, even what he has will be taken from him." Learn first to treat your time as you would your money, then treat your money as you do your time.
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harrydre		#8 Posted : Tuesday, July 17, 2012 8:31:19 PM
Rank: Elder Joined: 7/10/2008 Posts: 9,131 Location: Kanjo		MaichBlack wrote: harrydre wrote: well the good book talks about GIVING...to those who give, more will be given.. The 1.05% may look small but that would be approximately Kshs 432,000.00pm in interest alone for atleast the first year. Don't you think that would silence miguu-nah for 2 months (think runda rent) 1.05% p.a. of whatever is DIRT CHEAP!!! It's below the inflation rate - even the American one. You are actually being paid to take the money!!! If we had such rates in Kenya, nobody would ever rent!!! Even if your rent is as low as 5k a month, you just take a 1.8m mortgage [which would afford you a better house than the one you are paying 5k a month] and at 1% rate, your repayments would be the same as your rent!!! Get it? At 25k a month, we are talking about 9m 30 year mortgage. That gets you a house in migaa. Right? And you continue paying 25k!!! Only that now you are living in a decent house with a compound instead of a fifth floor flat. And the "rent" is the same! And you ultimately own the house! The principal amount matters. Most of the home loans are now going for around 3.25% which is a good rate if the loan amount is not as huge as Zuckerberg's i.am.back!!!!
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MaichBlack		#9 Posted : Tuesday, July 17, 2012 8:47:16 PM
Rank: Elder Joined: 7/22/2009 Posts: 7,468		harrydre wrote: Most of the home loans are now going for around 3.25% Where? I hope you are talking about US as opposed to Kenya! harrydre wrote: The principal amount matters.... which is a good rate if the loan amount is not as huge as Zuckerberg's 1% is 1% my friend!!! If I invest 1,000,000 at 10% and you invest 200 at 10% who is getting a better deal? ne kilo of stones vs one kilo of sawdust all over again!!! Zukerberg can easily get his hands on $6m in cash. But even if he had it in his bedroom, he would still take the mortgage because he will essentially pay less than he borrowed (time value of money) because the 1% is less than the inflation rate!!! If that is too complicated, let me give you a simpler example. If he invests that money even in the modest of investment tools, the return will definitely be higher than 1%. So he'd rather invest what he has in cash and get a mortgage. If you still don't get that, I give up!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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harrydre		#10 Posted : Wednesday, July 18, 2012 2:31:17 AM
Rank: Elder Joined: 7/10/2008 Posts: 9,131 Location: Kanjo		i am not disputing your facts, i basically tried to show for that amount of loan, 1% is significant when u compute the monthly interest. i.am.back!!!!
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