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Housing Finance: HFCK a diamond in the rough
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matatuman
#1241 Posted : Monday, April 13, 2015 10:25:15 PM
Rank: Member

Joined: 12/5/2013
Posts: 224
heri wrote:
MaichBlack wrote:
murchr wrote:
Housing Finance plans to launch real estate projects worth Sh30 billion in Nairobi.

The projects will be implemented in the next 12 months through the mortgage lender’s building and construction subsidiary, Kenya Building Society (KBS).

Kenya Building Society will be the cash cow for Housing Finance!

Watch this space.



just wondering how profitable these projects are. according to Business daily

''Last year, KBS completed constructing 162 units in Komarock Phase 5A, which generated Sh200 million profit for the company. About 162 houses retailed for a minimum of Sh6.8 million at the start of the construction in 2012''


does this mean each house generates just about sh 1million or about 700K after tax? that return would be just about 15%

I did some few houses in Nakuru and each 2 bedroom house costed me sh 2M. each has a market value of sh 4M.Very good finishing (renting at sh 22k)

i wonder if HFCK can generate that kind of returns on these houses, because if their costs are not too high per house, then this is share that will go places


Their achilles heel is their source of funds. They are using expensive credit to finance projects that have returns in the future. The spreads are minimum. Not to mention the regulatory environment doesn't exactly favour them, not with every other bank peddling mortgages. The management is still stuck in stone age, yet to wake up to reality.
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mlennyma
#1242 Posted : Tuesday, April 14, 2015 9:11:03 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
The optimist wrote:
mlennyma wrote:
Bring back our money.what a total waste of time? ???I wish I bought something else

What was the allocation rate

today they are crediting your cds account with what you got,tomorrow you will trade with them,get your eft refund or cheque
"Don't let the fear of losing be greater than the excitement of winning."
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subaru
#1243 Posted : Tuesday, April 14, 2015 9:40:36 AM
Rank: Member

Joined: 3/15/2010
Posts: 391
Location: nairobie
mlennyma wrote:
The optimist wrote:
[quote=mlennyma]Bring back our money.what a total waste of time? ???I wish I bought something else

What was the allocation rate


you are talking as if you know the allocation rate please tell us
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mwekez@ji
#1244 Posted : Tuesday, April 14, 2015 12:57:28 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
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mlennyma
#1245 Posted : Wednesday, April 15, 2015 10:37:23 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
I wanted 15,000 additional shares, I got 800 what a waste of time??
"Don't let the fear of losing be greater than the excitement of winning."
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obiero
#1246 Posted : Wednesday, April 15, 2015 1:47:31 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,320
Location: nairobi
mlennyma wrote:
I wanted 15,000 additional shares, I got 800 what a waste of time??

And now the price is approaching the genuine 30bob :)
COOP, IMH, KEGN, KQ, MTNU
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mwekez@ji
#1247 Posted : Wednesday, April 15, 2015 6:40:28 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
mlennyma wrote:
I wanted 15,000 additional shares, I got 800 what a waste of time??

Agreed my friend. The allocation criteria used here only favoured the big shareholders. Its the same criteria that was used in the recent NIC rights issue ... Only DTB had a different one
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heri
#1248 Posted : Thursday, April 16, 2015 10:07:57 AM
Rank: Member

Joined: 9/14/2011
Posts: 869
Location: nairobi
I must confess that i get abit confused with HF . in my view constructing and selling houses is a very luctrative business especially for people with the experience and who do it in large scale

so my view is that they should be making big margins on the houses they build and sell

but their profits do not seem to reflect that view that i hold . Atleast for 2014 performance

If HF sells a house for say 7M, should their construction costs for such a house really be more than sh 4m all costs included? in which case they should make a huge profit
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Aguytrying
#1249 Posted : Thursday, April 16, 2015 11:04:59 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
mlennyma wrote:
I wanted 15,000 additional shares, I got 800 what a waste of time??


wacha tu. but looks like most good counters will be affordable soon
The investor's chief problem - and even his worst enemy - is likely to be himself
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Pesa Nane
#1250 Posted : Thursday, April 16, 2015 12:48:02 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
mlennyma wrote:
I wanted 15,000 additional shares, I got 800 what a waste of time??

What?? That's a measly 5.3%

As for me:
Allotted rights: Got 100%
Additional Application: Got 42.2%
Pesa Nane plans to be shilingi when he grows up.
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