Wazua
»
Investor
»
Property
»
Is Taking a Mortgage the WORST Decision Ever??
Rank: Member Joined: 9/27/2006 Posts: 503
|
Has anyone dealt with the 105% mortgage financing from Housing Finance?
|
|
|
Rank: Member Joined: 9/20/2007 Posts: 252
|
Well said @ Angelica _ann!
Very practical view, different from the doomsayers and alarmist.
Next they will say dont take a car loan, development loan because of fundamentals, ROI, NPV blah blah fueled by their google driven wisdom!
I have also just taken a mortgage, plan is to clear it in 3-4 years and take another one.
In the meantime, some "know it all" is in a rented house, trying to save and build his palace. Only if they knew how time flies.
We must accept there is a price/cost to pay for money borrowed regard less of the use for the loan.
So unless your dad is often mentioned on "who owns Kenya", sign on the dotted line, work hard to repay in a few years and move one.
Otherwise jenga yako and let others be!
Asanteni
Part home owner (other part is owned by the bank, for now!)
|
|
|
Rank: New-farer Joined: 4/12/2014 Posts: 36
|
By the time one is completing their house after six years using 'salary', the costs of smiti, roofing, finishings, labour your own man hours, stress, security, pilferage etc etc will be close to 3 times the current costs. Going by current trend, the mortgaged house if well selected can be offloaded to recoup your cash or even at a profit, in the event you know what hits the fan. It’s what you learn after you think you know it all that counts.
|
|
|
Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
|
mungaits wrote:Well said @ Angelica _ann!
Very practical view, different from the doomsayers and alarmist.
Next they will say dont take a car loan, development loan because of fundamentals, ROI, NPV blah blah fueled by their google driven wisdom!
I have also just taken a mortgage, plan is to clear it in 3-4 years and take another one.
In the meantime, some "know it all" is in a rented house, trying to save and build his palace. Only if they knew how time flies.
We must accept there is a price/cost to pay for money borrowed regard less of the use for the loan.
So unless your dad is often mentioned on "who owns Kenya", sign on the dotted line, work hard to repay in a few years and move one.
Otherwise jenga yako and let others be!
Asanteni
Part home owner (other part is owned by the bank, for now!) This is laughable, to say the least. Ati accelarate mortgage to 3-4 years.  A 9,000,000/- mortgage at 15% "accelerated" for 4 years would require one to be paying atleast 250,000/- monthly. A 9M house in Nairobi is ............ Receive with simplicity everything that happens to you.” ― Rashi
|
|
|
Rank: Elder Joined: 10/9/2008 Posts: 5,389
|
Omena wrote:By the time one is completing their house after six years using 'salary', the costs of smiti, roofing, finishings, labour your own man hours, stress, security, pilferage etc etc will be close to 3 times the current costs.
Going by current trend, the mortgaged house if well selected can be offloaded to recoup your cash or even at a profit, in the event you know what hits the fan. Interesting to note that when i was putting up my house in Nairobi 4yrs ago, cement was 720 bob while now it's 650 bob. Cost of chumas has also gone down. Labour hasn't changed much, maybe up 10%. Cost of fittings (kitchens, bathrooms, lighting, mdfs etc) has actually come down, e.g. the bathroom faucets i bought at 8k 4yrs ago are now going at 4.5k at the 'Big Sale' at the Ideal Ceramics stores in Nairobi. I have even had to change the bath i installed in the master en suite into a jacuzzi after jacuzzi prices came down and became affordable. My wife and I had a few millions (savings plus selling 2 plots) which we used to buy land within Nairobi. Then we each took 5yr loans to put up a 5bdrm house, which we put up in 6 months and moved in. So next year we will be loan free. The good thing is that the house allowance from our employers is more than our loan repayments. If we had taken a mortgage to buy a 5bdrm house (with own compound) we would have been stuck/'mortgaged' for 20yrs paying over 200k pm. But next year we will be loan free, and we intend to take new loans and slowly develop some flats on a plot we own in kitengela. So hopefully within 10yrs, we will be owning a house and a block of flats giving us 400k pm. However, since all wazuans situations are different, i would advice that each takes the option that's best suited to them, whether short term loans or mortgages depending on their circumstances.
|
|
|
Rank: Member Joined: 7/4/2010 Posts: 118
|
Has someone dealt with KCB S&L? I have been trying to get information concerning a property on their website since Friday last week. I have called like 6 times. and each time i have been told 'the person who has that information is out' or is busy or has left. and today's response was classic. 'the person who has that information is not currently in, he is the only one with internet access so he is the only one who can see what properties our website has and therefore can advise on properties we have listed on our website'. Are you for real, there's only 1 guy at S&L with internet access who can see what S&L has put up on its website and therefore advise on these properties? Yoh! In 2014, are you serious KCB, S&L?
|
|
|
Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
|
dunkang wrote:mungaits wrote:Well said @ Angelica _ann!
Very practical view, different from the doomsayers and alarmist.
Next they will say dont take a car loan, development loan because of fundamentals, ROI, NPV blah blah fueled by their google driven wisdom!
I have also just taken a mortgage, plan is to clear it in 3-4 years and take another one.
In the meantime, some "know it all" is in a rented house, trying to save and build his palace. Only if they knew how time flies.
We must accept there is a price/cost to pay for money borrowed regard less of the use for the loan.
So unless your dad is often mentioned on "who owns Kenya", sign on the dotted line, work hard to repay in a few years and move one.
Otherwise jenga yako and let others be!
Asanteni
Part home owner (other part is owned by the bank, for now!) This is laughable, to say the least. Ati accelarate mortgage to 3-4 years. A 9,000,000/- mortgage at 15% "accelerated" for 4 years would require one to be paying atleast 250,000/- monthly. A 9M house in Nairobi is ............ I think guys in here have lots of other sources of cash to fund this "acceleration" or its just theories
|
|
|
Rank: Member Joined: 9/21/2007 Posts: 326
|
too much hullaboo for nothing. the way i see it is - a house is not an investment, its simply a basic human need! it doesnt give you an income and costs you money to maintain but it gives you loads of peace. my advise when you are still young and stupid, please spare some money from colognes, mitumba cars, phombe and other midrro class niceties to put up a hood either through mortgage or whatever, just do it. Speak your truth quietly and clearly; and listen to others, even the dull and the ignorant; they too have their story.
|
|
|
Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
|
jaggernaut wrote:Omena wrote:By the time one is completing their house after six years using 'salary', the costs of smiti, roofing, finishings, labour your own man hours, stress, security, pilferage etc etc will be close to 3 times the current costs.
Going by current trend, the mortgaged house if well selected can be offloaded to recoup your cash or even at a profit, in the event you know what hits the fan. Interesting to note that when i was putting up my house in Nairobi 4yrs ago, cement was 720 bob while now it's 650 bob. Cost of chumas has also gone down. Labour hasn't changed much, maybe up 10%. Cost of fittings (kitchens, bathrooms, lighting, mdfs etc) has actually come down, e.g. the bathroom faucets i bought at 8k 4yrs ago are now going at 4.5k at the 'Big Sale' at the Ideal Ceramics stores in Nairobi. I have even had to change the bath i installed in the master en suite into a jacuzzi after jacuzzi prices came down and became affordable. My wife and I had a few millions (savings plus selling 2 plots) which we used to buy land within Nairobi. Then we each took 5yr loans to put up a 5bdrm house, which we put up in 6 months and moved in. So next year we will be loan free. The good thing is that the house allowance from our employers is more than our loan repayments. If we had taken a mortgage to buy a 5bdrm house (with own compound) we would have been stuck/'mortgaged' for 20yrs paying over 200k pm. But next year we will be loan free, and we intend to take new loans and slowly develop some flats on a plot we own in kitengela. So hopefully within 10yrs, we will be owning a house and a block of flats giving us 400k pm. However, since all wazuans situations are different, i would advice that each takes the option that's best suited to them, whether short term loans or mortgages depending on their circumstances.  This is the road to follow ....ati accelerate mortgage payments? with what? Business and economics are not always that benevolent, luck runs out or you fall on hard times ...deals zinakataa kuingiana au mabonus za job zinakatwa. Do not saddle yourself with colossal debt (when there are other options) hoping that 'windfall incomes' will save the day. And if they don't?
|
|
|
Rank: Elder Joined: 12/7/2012 Posts: 11,908
|
Mo wrote:too much hullaboo for nothing. the way i see it is - a house is not an investment, its simply a basic human need! it doesnt give you an income and costs you money to maintain but it gives you loads of peace.
my advise when you are still young and stupid, please spare some money from colognes, mitumba cars, phombe and other midrro class niceties to put up a hood either through mortgage or whatever, just do it. Yap  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
|
|
|
Rank: Elder Joined: 7/11/2012 Posts: 5,222
|
jaggernaut wrote:Omena wrote:By the time one is completing their house after six years using 'salary', the costs of smiti, roofing, finishings, labour your own man hours, stress, security, pilferage etc etc will be close to 3 times the current costs.
Going by current trend, the mortgaged house if well selected can be offloaded to recoup your cash or even at a profit, in the event you know what hits the fan. Interesting to note that when i was putting up my house in Nairobi 4yrs ago, cement was 720 bob while now it's 650 bob. Cost of chumas has also gone down. Labour hasn't changed much, maybe up 10%. Cost of fittings (kitchens, bathrooms, lighting, mdfs etc) has actually come down, e.g. the bathroom faucets i bought at 8k 4yrs ago are now going at 4.5k at the 'Big Sale' at the Ideal Ceramics stores in Nairobi. I have even had to change the bath i installed in the master en suite into a jacuzzi after jacuzzi prices came down and became affordable. My wife and I had a few millions (savings plus selling 2 plots) which we used to buy land within Nairobi. Then we each took 5yr loans to put up a 5bdrm house, which we put up in 6 months and moved in. So next year we will be loan free. The good thing is that the house allowance from our employers is more than our loan repayments. If we had taken a mortgage to buy a 5bdrm house (with own compound) we would have been stuck/'mortgaged' for 20yrs paying over 200k pm. But next year we will be loan free, and we intend to take new loans and slowly develop some flats on a plot we own in kitengela. So hopefully within 10yrs, we will be owning a house and a block of flats giving us 400k pm. However, since all wazuans situations are different, i would advice that each takes the option that's best suited to them, whether short term loans or mortgages depending on their circumstances. But is it the same wife you mpango-ya-kando on?
|
|
|
Rank: Elder Joined: 7/11/2012 Posts: 5,222
|
Mukiri wrote:KulaRaha wrote:Athi View were selling at 9.95M off plan last year in August. They wanted a down payment of 2M and you can book your house. They have since started work, and even gone to the extent of tarmacing the road from Mombasa Road. Now remaining units are selling at 12.5M. Thats a 25.5% return in less than a year. Watch that space. http://www.athiview.com/
Other off-plans known? Maybe we should start a thread  
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,455
|
whiteowl wrote:dunkang wrote:mungaits wrote:Well said @ Angelica _ann!
Very practical view, different from the doomsayers and alarmist.
Next they will say dont take a car loan, development loan because of fundamentals, ROI, NPV blah blah fueled by their google driven wisdom!
I have also just taken a mortgage, plan is to clear it in 3-4 years and take another one.
In the meantime, some "know it all" is in a rented house, trying to save and build his palace. Only if they knew how time flies.
We must accept there is a price/cost to pay for money borrowed regard less of the use for the loan.
So unless your dad is often mentioned on "who owns Kenya", sign on the dotted line, work hard to repay in a few years and move one.
Otherwise jenga yako and let others be!
Asanteni
Part home owner (other part is owned by the bank, for now!) This is laughable, to say the least. Ati accelarate mortgage to 3-4 years. A 9,000,000/- mortgage at 15% "accelerated" for 4 years would require one to be paying atleast 250,000/- monthly. A 9M house in Nairobi is ............ I think guys in here have lots of other sources of cash to fund this "acceleration" or its just theories Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: Member Joined: 10/19/2009 Posts: 671 Location: Nairobi
|
Wow!
Life is joy, death is peace, but the transition is very difficult.
|
|
|
Rank: Member Joined: 3/17/2008 Posts: 567 Location: Nairobi
|
Been looking thro this from the sidelines.
Motrguages work for some people and will not work for others (kama mimi). Building on the other hand ni kazi but as someone has said in 2 - 3 years sometimes 4 years na umemalizana na madeny.
The only good thing i see from mortguages is that you can get a house where you (and your pocket) wants. I have never seen the logic of living in a place where you wake up at 4am every day and arrive home at 9pm sababu umejenga sijui Isinya. That reduces your quality of life.
I know families who have moved out of their Karen & Kiambu Rd Mansions to live in Apartments on Ngong Rd.
|
|
|
Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
|
Pablo wrote:
Been looking thro this from the sidelines.
Motrguages work for some people and will not work for others (kama mimi). Building on the other hand ni kazi but as someone has said in 2 - 3 years sometimes 4 years na umemalizana na madeny.
The only good thing i see from mortguages is that you can get a house where you (and your pocket) wants. I have never seen the logic of living in a place where you wake up at 4am every day and arrive home at 9pm sababu umejenga sijui Isinya. That reduces your quality of life.
I know families who have moved out of their Karen & Kiambu Rd Mansions to live in Apartments on Ngong Rd.
Look at it this way,...once your roof is assured and finances are free of burden in those 3 or 4 years, nothing stops you from taking a new mortgage in the nicer location. Your second house converts into a nice little earner. You can even indulge in risky, adventurous business or relocate to Djibouti without worrying whether in a year's time you will still hold a job or default the loan. It is sweet sweet freedom. Reverse the scenario where for instance you are forking out say 120,000 a month. Add one or two kids who need fees, a car that needs maintenance and fuel, food and other incidentals, you will be terribly squeezed. Unless your salary increases geometrically with years, or you get fat bonuses (most people dont), you will have worked yourself into a corner where you cannot do anything else. Other peoples luck of kuangukia ma-deals may not come your way. You eat and breathe mortgage for 20 years. Choose the short-term-pain-then-freedom option.
|
|
|
Rank: Member Joined: 7/8/2013 Posts: 126
|
There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,455
|
omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: Member Joined: 2/20/2007 Posts: 767
|
MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Bwana Maich wacha stress, the flat is 34 m because there are willing buyers at that price ... In Kenya They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
|
|
|
Rank: Elder Joined: 12/7/2012 Posts: 11,908
|
tom_boy wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Bwana Maich wacha stress, the flat is 34 m because there are willing buyers at that price ... In Kenya For the flat to be 34m and not 20 or 25 or 30 means NSSF have done market study and established that there are people who are able and willing to buy at that price. How they fund the 34m is thier business! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
|
|
|
Wazua
»
Investor
»
Property
»
Is Taking a Mortgage the WORST Decision Ever??
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|