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Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 7/11/2012 Posts: 5,222
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Sufficiently Philanga....thropic wrote:Mukiri wrote:tinker wrote:Sufficiently Philanga....thropic wrote:Avoid debt(slavery) at all costs.You will be working for the KCBs and Equitys of this world. Better to work with the little you have.Then you will have PEACE-THE ULTIMATE GOAL! Does this advise against taking any kind of debt even for business expansion, buying an asset such as land or car. Debt IS NOT slavery! Debt is how wealth can be fast tracked. Read about leveraging OPM (Other people's money). Important thing is to have a plan and good advisors/mentors. Asset should bring you money ie the land and car should be for biachara Debt is slavery(The bank being the master).You need debt once in a while as @Mukiri has eloquently put across but all efforts should be made to quickly get out of debt.Why?PEACE OF MIND! Boss, sio matusi but read this LINKEspecially 'Average people believe you need money to make money. Rich people use other people's money.'
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Rank: Member Joined: 1/13/2014 Posts: 398 Location: Denmark
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Mukiri wrote:Sufficiently Philanga....thropic wrote:Mukiri wrote:tinker wrote:Sufficiently Philanga....thropic wrote:Avoid debt(slavery) at all costs.You will be working for the KCBs and Equitys of this world. Better to work with the little you have.Then you will have PEACE-THE ULTIMATE GOAL! Does this advise against taking any kind of debt even for business expansion, buying an asset such as land or car. Debt IS NOT slavery! Debt is how wealth can be fast tracked. Read about leveraging OPM (Other people's money). Important thing is to have a plan and good advisors/mentors. Asset should bring you money ie the land and car should be for biachara Debt is slavery(The bank being the master).You need debt once in a while as @Mukiri has eloquently put across but all efforts should be made to quickly get out of debt.Why?PEACE OF MIND! Boss, sio matusi but read this LINKEspecially 'Average people believe you need money to make money. Rich people use other people's money.' I believe debt should be employed to investments and that's how one uses other peoples' money to make kills and I surely don't classify a home as investment . It has been a point of debate in this forum. Seeing is believing
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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webish wrote:chemos wrote:
The biggest issue with mortgages is that most people want to buy their dream homes with the 1st mortgage thus go for exorbitantly priced houses..(making them not able to accelerate payments)
My 2 cents
THANK YOU. Angelica _ann wrote:@Chemos, thanks and that is exactly what i meant in my post #17 though i didnot explain it very well. Started in Koma, then Buru, then Southlands, then Jambo on my way to Karen. Tutakutana huko!.
Start with what you can swallow in titbits and pieces and as you grow, increase both the pieces and the rate of swallowing! Works wonders.
We also need to recognise that real estate also appreciate over time, roughly after 3 years. a4architect.com wrote:@Angelica, true, people have to move upwards slowly. I own my home 10km from Karen centre, mortgage-free, while my office is in Karen. I also aim to in future, move my home to 0km radius from Karen shopping centre. check usa morgtgage rates here, an average of 3.2% p.a http://www.bankrate.com/national-mortgage-rates/
 People are too attached to 'thing's' way too much, like shares in certain companies, 1st houses, 1st cars etc. Grow into your dream home.
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Rank: Elder Joined: 4/22/2009 Posts: 2,863
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sparkly wrote:I agree with @Maich. A 20yr mortgage at 15% is slavery. Better buy cash OR buy plot and build with Sacco loan. A 12% Sacco loan on reducing balance is 7.5% straight line. Some years back, there was a wonderful discussion in Wazua(Stockskenya)on merits and demerits of sacco loans. At the end of the debate, sacco loans were completely demystified. Take a look here. http://www.wazua.co.ke/f....aspx?g=posts&t=1109IF YOU EXPECT ME TO POST ANYTHING POSITIVE ABOUT ASENO, YOU MAY AS WELL SIT ON A PIN
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Rank: Member Joined: 4/20/2012 Posts: 888
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Angelica _ann wrote:@Chemos, thanks and that is exactly what i meant in my post #17 though i didnot explain it very well. Started in Koma, then Buru, then Southlands, then Jambo on my way to Karen. Tutakutana huko!.
Start with what you can swallow in titbits and pieces and as you grow, increase both the pieces and the rate of swallowing! Works wonders.
We also need to recognise that real estate also appreciate over time, roughly after 3 years. I have noted several people have an objective of being in Karen one day; My thinking is why can't we make our own "Karen". Karen was not there sometimes back neither was Muthaiga. I live in a quiet neighbourhood which God willing we envisage to transform it to "New Karen". I believe it can be done. Watch this space. The point is valid; we need to build our dream homes gradually.
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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Mukiri wrote:Sufficiently Philanga....thropic wrote:Mukiri wrote:tinker wrote:Sufficiently Philanga....thropic wrote:Avoid debt(slavery) at all costs.You will be working for the KCBs and Equitys of this world. Better to work with the little you have.Then you will have PEACE-THE ULTIMATE GOAL! Does this advise against taking any kind of debt even for business expansion, buying an asset such as land or car. Debt IS NOT slavery! Debt is how wealth can be fast tracked. Read about leveraging OPM (Other people's money). Important thing is to have a plan and good advisors/mentors. Asset should bring you money ie the land and car should be for biachara Debt is slavery(The bank being the master).You need debt once in a while as @Mukiri has eloquently put across but all efforts should be made to quickly get out of debt.Why?PEACE OF MIND! Boss, sio matusi but read this LINKEspecially 'Average people believe you need money to make money. Rich people use other people's money.' Thanks @Mukiri for the link though i read all that in campus in the mid to late 90s and also 8 years ago in the above mentioned books(Rich dad & cashflow quadrant and also had the privilege to utilise that in business to this day. Great stuff in that link, i must say! @SufficientlyP
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Rank: Member Joined: 10/19/2009 Posts: 671 Location: Nairobi
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Angelica _ann wrote:@Chemos, thanks and that is exactly what i meant in my post #17 though i didnot explain it very well. Started in Koma, then Buru, then Southlands, then Jambo on my way to Karen. Tutakutana huko!.
Start with what you can swallow in titbits and pieces and as you grow, increase both the pieces and the rate of swallowing! Works wonders.
This should be so relevant for starters like myself. @Angelica, you always sound like someone I wouldn't mind chatting over a cup of coffee. I follow keenly your comments on "Property section".. Keep ON.
Life is joy, death is peace, but the transition is very difficult.
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Rank: Member Joined: 6/17/2010 Posts: 572
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good discussion here, taking a mortgage in Kenya is akin to institutionalized robbery albeit legally, what i do for keep involves a whole lot of travel and being away from home for long periods of time hence when it came to housing what i needed most was flexibility and a mortgage would tie me down plus it was absolutely ridiculous to even think of taking one at the then rates plus the artificial nature of realty pricing didn't help. i decided to buy upfront a two bed flat on MSA rd for 5.5m as it would fit perfectly within my plans but while i was consolidating my funds for the purchase i read something on wazua about putting cash in bonds and using interest to pay rent and that is what i exactly did, got some 6m bought a 15 year bond at 11% fixed which gives me about 45k monthly then rented out a unit at the said flat complex for 28k service charge included all this was captured in a lease renewable every 2yrs and payable bi annually to tally with my interest payments. i easily pay rent, monthly shopping and utilities even when i am not around. i dont have issues with renting and if i wanted to upgrade all i need to do is get another bond to cover the difference in rent that i would pay at the new estate, the only home that i will be interested in building is my retirement home which i will build in my bunduz after retiring with the cash from the bonds 'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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MKWASI wrote:Angelica _ann wrote:@Chemos, thanks and that is exactly what i meant in my post #17 though i didnot explain it very well. Started in Koma, then Buru, then Southlands, then Jambo on my way to Karen. Tutakutana huko!.
Start with what you can swallow in titbits and pieces and as you grow, increase both the pieces and the rate of swallowing! Works wonders.
We also need to recognise that real estate also appreciate over time, roughly after 3 years. I have noted several people have an objective of being in Karen one day; My thinking is why can't we make our own "Karen". Karen was not there sometimes back neither was Muthaiga. I live in a quiet neighbourhood which God willing we envisage to transform it to "New Karen". I believe it can be done. Watch this space. The point is valid; we need to build our dream homes gradually. Where is this? You never know, we may join you in building the dream. Remember they all started that way. Loresho, Kitsuru, na wengineo
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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vky wrote:good discussion here, taking a mortgage in Kenya is akin to institutionalized robbery albeit legally,
what i do for keep involves a whole lot of travel and being away from home for long periods of time hence when it came to housing what i needed most was flexibility and a mortgage would tie me down plus it was absolutely ridiculous to even think of taking one at the then rates plus the artificial nature of realty pricing didn't help.
i decided to buy upfront a two bed flat on MSA rd for 5.5m as it would fit perfectly within my plans but while i was consolidating my funds for the purchase i read something on wazua about putting cash in bonds and using interest to pay rent and that is what i exactly did, got some 6m bought a 15 year bond at 11% fixed which gives me about 45k monthly then rented out a unit at the said flat complex for 28k service charge included all this was captured in a lease renewable every 2yrs and payable bi annually to tally with my interest payments.
i easily pay rent, monthly shopping and utilities even when i am not around.
i dont have issues with renting and if i wanted to upgrade all i need to do is get another bond to cover the difference in rent that i would pay at the new estate, the only home that i will be interested in building is my retirement home which i will build in my bunduz after retiring with the cash from the bonds
@vky, thats a very smart move to use your investments to pay of your rent. This gives you flexibility in location choice of your home. In the hotel room investment option here http://www.a4architect.c...ng-the-southern-bypass/
the kes 1.74m sale price per room investors can chanel the 25k per month income to pay off rent anywhere around Nairobi instead of using kes 5m to buy a house and offset the same amount/25k per month. As Iron Sharpens Iron, So one Man Sharpens Another.
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Is Taking a Mortgage the WORST Decision Ever??
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