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Housing Finance: HFCK a diamond in the rough
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jerry
#631 Posted : Thursday, June 20, 2013 10:29:34 AM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
@heri. You are already educated. You ask a question and the answer is so manifest in your long tirade!
The opposite of courage is not cowardice, it's conformity.
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jerry
#632 Posted : Thursday, June 20, 2013 10:34:49 AM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
mwekez@ji wrote:
mlennyma wrote:
@aguy,guru,mweke@zaji and i,seem to have consumated their marriage with hfck..lets hope we live happily with this one wife.


welcome me in your polyandrous hamlet! Is polyandry legal in Kenya?
The opposite of courage is not cowardice, it's conformity.
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VituVingiSana
#633 Posted : Thursday, June 20, 2013 10:38:40 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,366
Location: Nairobi
heri wrote:
From where does HFCK make money from? The mortgage business in Kenya is not big due to prohibitive rates

My chama borrowed sh 10m to buy an office in westlands and eventhough the rent we are getting is sh 120,000 from renting out the office, we are paying sh 194,000 over 10 years for that loan at 19%.

meaning we have to pay out of pocket sh 74k per month until we can get some rent increase maybe next year. But still it may take 7 years before we stop paying the loan from our pockets

so if for a sh 10m investment with an income of sh 120k is not that good what about someone who buys a house in South C for sh 15m and getting maybe only about sh 60k in rent?

Does mortgage business in Kenya make sense at the rates they charge? so how does Housing finance make money?

i know they also build houses for sale but those are not that many projects. i know of Komorock and Riruta where they have partnered with a land onwer?

please educate some of us who still want to buy into HF
Q&A. I don't know who makes money from renting out houses if they have borrowed more than 50% of the money/funds. The only folks who seem to make money are developers who borrow, build & sell at 150% (or more) of the land & constructions costs. Also known as a Pyramid Scheme.

Rent is 5-8% of the Purchase Price in Nairobi. Any additional 'profits' are on paper i.e. perceived increase in the value of an apartment because another is willing to pay you more.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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heri
#634 Posted : Thursday, June 20, 2013 10:45:50 AM
Rank: Member

Joined: 9/14/2011
Posts: 869
Location: nairobi
You see even if we did not borrow all the amount for the purchase, there would still be a cost of capital wherever the funds come from. which means you can still say that you need to make more than 19% return to make money. but that is not possible

Mind you for a rent of sh 120k having put in sh 10m is still very good. its double what sh 15m house in South C will fetch

so is the HF mortgage business at such higher rates a good business for them to make money?
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Aguytrying
#635 Posted : Thursday, June 20, 2013 10:50:42 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
heri wrote:
From where does HFCK make money from? The mortgage business in Kenya is not big due to prohibitive rates

My chama borrowed sh 10m to buy an office in westlands and eventhough the rent we are getting is sh 120,000 from renting out the office, we are paying sh 194,000 over 10 years for that loan at 19%.

meaning we have to pay out of pocket sh 74k per month until we can get some rent increase maybe next year. But still it may take 7 years before we stop paying the loan from our pockets

so if for a sh 10m investment with an income of sh 120k is not that good what about someone who buys a house in South C for sh 15m and getting maybe only about sh 60k in rent?

Does mortgage business in Kenya make sense at the rates they charge? so how does Housing finance make money?

i know they also build houses for sale but those are not that many projects. i know of Komorock and Riruta where they have partnered with a land onwer?

please educate some of us who still want to buy into HF


HFCK makes money from the interest paid by clients who take loans (mortgages) with them. That 19% you are paying is where HFCK makes money. As long as people need loans to build(and most frequently do), HFCK makes money. as long as there is a housing/buildings deficit and demand HFCK makes money.

The investor's chief problem - and even his worst enemy - is likely to be himself
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King G
#636 Posted : Thursday, June 20, 2013 1:41:37 PM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
jerry wrote:
mwekez@ji wrote:
mlennyma wrote:
@aguy,guru,mweke@zaji and i,seem to have consumated their marriage with hfck..lets hope we live happily with this one wife.


welcome me in your polyandrous hamlet! Is polyandry legal in Kenya?


Tuko wengi full house was in love @ 16.5 & 19 ranges. @obiero almost scared me to exit but I stayed strong. smelling @30 coming soon! #keepthefaithandwait
Thieves
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obiero
#637 Posted : Thursday, June 20, 2013 8:10:10 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,275
Location: nairobi
King G wrote:
jerry wrote:
mwekez@ji wrote:
mlennyma wrote:
@aguy,guru,mweke@zaji and i,seem to have consumated their marriage with hfck..lets hope we live happily with this one wife.


welcome me in your polyandrous hamlet! Is polyandry legal in Kenya?


Tuko wengi full house was in love @ 16.5 & 19 ranges. @obiero almost scared me to exit but I stayed strong. smelling @30 coming soon! #keepthefaithandwait

@KingG.. HFCK is not a bad stock, it is an average stock at current prices and thus its not too late to exit. Coop Bank is currently a steal with much greater promise of outsized returns. Never get too attached to a stock.. Thank me later
COOP, IMH, KEGN, KQ, MTNU
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guru267
#638 Posted : Thursday, June 20, 2013 8:33:35 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
obiero wrote:
King G wrote:
jerry wrote:
mwekez@ji wrote:
mlennyma wrote:
@aguy,guru,mweke@zaji and i,seem to have consumated their marriage with hfck..lets hope we live happily with this one wife.


welcome me in your polyandrous hamlet! Is polyandry legal in Kenya?


Tuko wengi full house was in love @ 16.5 & 19 ranges. @obiero almost scared me to exit but I stayed strong. smelling @30 coming soon! #keepthefaithandwait

@KingG.. HFCK is not a bad stock, it is an average stock at current prices and thus its not too late to exit. Coop Bank is currently a steal with much greater promise of outsized returns. Never get too attached to a stock.. Thank me later


Co op cheaper than HFCK?? #Madness
Mark 12:29
Deuteronomy 4:16
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mlennyma
#639 Posted : Friday, June 21, 2013 10:46:55 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Last year was a flat year but with good div. 2013 is our year,as we gear towards the end of 1H,there can only be one word"optimism"and the share is attempting a climb again..stay put men.
"Don't let the fear of losing be greater than the excitement of winning."
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mlennyma
#640 Posted : Saturday, June 22, 2013 9:00:04 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
My dividend not yet,who else?
"Don't let the fear of losing be greater than the excitement of winning."
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