Geez!!! What's up with you? I have given you a million links! Does your computer have a mouse?

Today alone I have given you the link below twice!!!

http://www.investinginafrica.net/african-stock-markets/african-stock-market-performance/

There is this one too!



Among many others?

And I'm telling you to simply ask wazuans what % returns they have actually been making!! And a number have provided actual numbers. I have also given you links of people who document their plays real time and make more than 100% returns in a year and you have chosen to ignore all this!

I officially give up on you. You are not interested in facts! Not one bit. I presume you are bank 'sales executive'.

The NSE index has made 12% returns over the past 5 years. That is what the average investor made over the period.[/quote]



I just quoted the economist. So maybe we start again, whoz numbers are correct?

Click the links provided!!!! Starting with the ones in post# 162 above! What is???

Many thanks to @mukiri, @chemos and @angelic for sober, practical and real life insights.

I think some of the contributors are losing the focus of the discussion, the issue here is merits and demerits of mortgage plus ways to make mortgage work for you.

Hii maneno ya shares or buying buroti (plus lots of hypothetical google supported analysis) are better than mortgages are really not relevant in this discussion.

No one is disputing that shares na buroti can make you a billionaire but in this discussion its not helping. My suugestion, move the shares maneno to another thread and let the relevant comments continue here on issues to do with mortgages.

My personal take, just took an approx 3.8m mortgage for an apartment off Msa road, monthly repayment is around 50k.(potential rent of 25 - 30k) My plan is to pay it off in max 5 yrs and get another one in a "posher" address as my income hopefully adjusts upwards.

Kwa hayo machache asanteni.

NB no matusi

The issue here is "Investing" vs mortgage. You can invest in a good plot if you get one. Or stocks if you have good picks. Or wherever else.

I also invest in real estate. I have discussed this in in this forum over and over.

Question is - Do mortgages [vis-a-vis investments] make any economic sense??

My response is based on if one wants a house only for peace of mind, that should you lose your job or die, your family will have a roof over their head.

In 2010 i wanted to take a mortgage, house was a flat going for 7.6M. Qualified for one at 15% per annum for 20 years. Repayment was going to be 85k per month.

It occurred to me, i was going to tie a large portion of my income to this mortgage for a long time, i also felt my folks needed a better house, thought it would be wise to take an unsecured loan from a bank and build them one then engage a mortgage afterwards, best decision ever, because shortly after interest rates went up the roof, but with the unsecured loan it was bearable than a repayment of 140k from 85k while my salary remained the same.


Fast forward to 2013, my bank was offering 105% on Mortgages, figured i could even have new furniture for the new house since i did not need to put a down payment of any kind, just sign the papers, pass by tiles and carpet and go home!

A former classmate works for this bank and advised me otherwise.

This is what he said, 'if you can afford 100k a month out of your paycheck and still meet your other obligations, you are rich' A mortgage will however make you poor'

Gave an example of the cheapest mortgage you can get in Nairobi today; Those Nyayo Embakasi flats, go for 6.1m at 15% for 15-20 years. Your total repayment in 20 years is 20M.
If you are willing to live in Nyayo Embakasi, lets assume you don't mind living in mlolongo or Utawala.

Take an unsecured loan from your bank of 1M,find a piece of land 1/8th in size, Repay the loan in a year with the money you could have been repaying the mortgage.
Year two, top up the loan or take a new one of say 2M, start building your house, a design you want.

With the above maths, you will have a more decent and spacious house fully owned in 5 years at a cheaper cost minus those annoying neighbors.

With a mortgage, the day you lose your job, they will repossess it!! With an unsecured loan, insurance can sort them!!

So go ahead and invest the down payment you had in mind in stocks.

@sparkly - The question [in THIS discussion] is, if I can afford 50k, 100k or whatever amount every month would I be better of using it to pay a mortgage or investing [while paying rent]. That simple.

Comparing different debt instruments is a totally different discussion for another thread [which you can start].

Someone else can also start one for Real Estate vs Stocks.

Another day another person will start another one discussing which provider is the best for a specific debt instrument.

etc.

Let's not lose focus.

http://markets.ft.com/re...bol=570529&options={"StartDate":null,"EndDate":null,"LowerIndicator":[{"Args":[{"Type":11,"Value":12},{"Type":12,"Value":2}],"Code":18,"UID":220989742},{"Args":[{"Type":8,"Value":9},{"Type":9,"Value":12},{"Type":10,"Value":26}],"Code":9,"UID":943664520}],"UpperIndicator":[],"Overlay":[],"ChartStyle":3,"ChartScale":1,"CursorStyle":1,"Interval":8,"Duration":11,"Comparison":[],"PortfolioName":null,"Width":950,"Height":400,"ActiveTool":null}



Ok now can the expert analyse because am lazy.

@2012, true. am in the process of finalising a palacial residence in an upmarket nairobi neighbourhood which is financed through mortgage and the mortgage repayments = expected monthly rent.

This is a very rare occurrence in Nairobi and a near impossibility in the majority available real estate costing kes 5 to 6m with rent of 20 to 25 k and mortgage payments of 70k.

Only investments where mortgage repayment=rental income are considered a smart investment.

Its not mythical at all. I've made about 60% returns in my 1st year and posted it here