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Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 7/22/2009 Posts: 7,455
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Pension Schemes Returns in the NSENever count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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MaichBlack wrote:MaichBlack wrote:@Kiwaru - How many nicely spaced (not extravagant) "standard" two bedroom units can you fit per floor in a 50 by100 plot.
Other wazuans who have done it before can also contribute. Wazuans tafadhali saidia. @kiwaru, @A4Architect, wazua landlords??? Wazua landlords!!! Can you seriously be this mean with information??? There are enough tenants for everyone! He he he. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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MaichBlack wrote:MaichBlack wrote:MaichBlack wrote:@Kiwaru - How many nicely spaced (not extravagant) "standard" two bedroom units can you fit per floor in a 50 by100 plot.
Other wazuans who have done it before can also contribute. Wazuans tafadhali saidia. @kiwaru, @A4Architect, wazua landlords??? Wazua landlords!!! Can you seriously be this mean with information??? There are enough tenants for everyone! He he he. The best design is 4 No. 2bdrms plus 1 No. 1 bdrm per floor. Assuming the plot is rectangular, you put two 2bdrm units mbele and two 2bdrm huko nyuma. The 1bdrm iko hapo katikati sharing space with the staircase.
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Rank: New-farer Joined: 4/8/2015 Posts: 42
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jaggernaut wrote:MaichBlack wrote:MaichBlack wrote:MaichBlack wrote:@Kiwaru - How many nicely spaced (not extravagant) "standard" two bedroom units can you fit per floor in a 50 by100 plot.
Other wazuans who have done it before can also contribute. Wazuans tafadhali saidia. @kiwaru, @A4Architect, wazua landlords??? Wazua landlords!!! Can you seriously be this mean with information??? There are enough tenants for everyone! He he he. The best design is 4 No. 2bdrms plus 1 No. 1 bdrm per floor. Assuming the plot is rectangular, you put two 2bdrm units mbele and two 2bdrm huko nyuma. The 1bdrm iko hapo katikati sharing space with the staircase. @maichblack Do you have a sample draft? Please share. seviankampuni@gmail.com
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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jaggernaut wrote:MaichBlack wrote:MaichBlack wrote:MaichBlack wrote:@Kiwaru - How many nicely spaced (not extravagant) "standard" two bedroom units can you fit per floor in a 50 by100 plot.
Other wazuans who have done it before can also contribute. Wazuans tafadhali saidia. @kiwaru, @A4Architect, wazua landlords??? Wazua landlords!!! Can you seriously be this mean with information??? There are enough tenants for everyone! He he he. The best design is 4 No. 2bdrms plus 1 No. 1 bdrm per floor. Assuming the plot is rectangular, you put two 2bdrm units mbele and two 2bdrm huko nyuma. The 1bdrm iko hapo katikati sharing space with the staircase. Disaster. Clientele for 1br are single young upwardly mobile carefree monied people. Clientele for 2br are just married couples with their first kid. How will these two mix? Huyo single lady shacking in the 1br will be skinned alive by the first time mothers.
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 6/14/2010 Posts: 521 Location: Nairobi
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The discussion hasn't stopped there.
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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The optimist wrote:The discussion hasn't stopped there. Where's he getting a 12% fixed rate for 20 yrs? The rent today's less than mortgage repayments, what about in 5 years?
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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Tings a gwan!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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A 20 year 30 million loan at 17% interest rate has a monthly repayment of Kshs. 440,040/=. Adjusting the same loan to 27% without changing the repayment period increases the monthly repayments to Kshs. 678,252/=. A 54% increment in monthly repayment amount (Though a casual eye might 'see' a 10% increment). Adjusting the payment period makes things worse in terms of interest payments but at least spreads out the pain over a long long time!!! That is how fast you can get screwed!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Taking Mortgage in kenya is the worst decision ever . Remember the rates aren't fixed.its pegged to govt policies and political waves. From 17% to 27% .. just to live a dream fantasy house but inside yourself your are burning in a nightmare ? Not worth it at all
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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MaichBlack wrote:A 20 year 30 million loan at 17% interest rate has a monthly repayment of Kshs. 440,040/=.
Adjusting the same loan to 27% without changing the repayment period increases the monthly repayments to Kshs. 678,252/=. A 54% increment in monthly repayment amount (Though a casual eye might 'see' a 10% increment). Adjusting the payment period makes things worse in terms of interest payments but at least spreads out the pain over a long long time!!!
That is how fast you can get screwed!!! To make it worse it happened in 2012, 2015, meaning in 3-5 year cycle. So in 30 years it happens 6-8 times. Jesus Christ! You'll pay × 5. Screwing dry. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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MaichBlack wrote:A 20 year 30 million loan at 17% interest rate has a monthly repayment of Kshs. 440,040/=.
Adjusting the same loan to 27% without changing the repayment period increases the monthly repayments to Kshs. 678,252/=. A 54% increment in monthly repayment amount (Though a casual eye might 'see' a 10% increment). Adjusting the payment period makes things worse in terms of interest payments but at least spreads out the pain over a long long time!!!
That is how fast you can get screwed!!! No amount of cooking results will save the NPLs coming up.Banking sector will crash and burn.
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Rank: Member Joined: 1/22/2015 Posts: 682
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MaichBlack wrote:A 20 year 30 million loan at 17% interest rate has a monthly repayment of Kshs. 440,040/=.
Adjusting the same loan to 27% without changing the repayment period increases the monthly repayments to Kshs. 678,252/=. A 54% increment in monthly repayment amount (Though a casual eye might 'see' a 10% increment). Adjusting the payment period makes things worse in terms of interest payments but at least spreads out the pain over a long long time!!!
That is how fast you can get screwed!!! I view this as more of a failure of modern society. The city dwelling human is the only creature on this planet that slaves away for decades to do the most basic thing of building a home for himself. In rural areas and in the animal kingdom, that is a one week process and you move on! There are some areas where this so called progress of civilization has really failed humans, but what can you do... accept and move on I guess?
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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murchr wrote:Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Boris Boyka wrote:murchr wrote:Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars. Unless you are in these group of Kenyans you need not a 30M loan "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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murchr wrote:Boris Boyka wrote:murchr wrote:Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars. Unless you are in these group of Kenyans you need not a 30M loan Yes. @murchr by the way Fixed rate is worst. Don't even think of it  For example for same loan amount paid in same period, 8% fixed rate (straight line) = 16% reducing balance in terms of monthly payments and total interest paid. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Boris Boyka wrote:murchr wrote:Boris Boyka wrote:murchr wrote:Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars. Unless you are in these group of Kenyans you need not a 30M loan Yes. @murchr by the way Fixed rate is worst. Don't even think of it For example for same loan amount paid in same period, 8% fixed rate (straight line) = 16% reducing balance in terms of monthly payments and total interest paid. Id rather a fixed rate, floating risk is not interesting "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: New-farer Joined: 4/8/2015 Posts: 42
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I know someone who got an email from Stanchart notifying them of the increase of mortgage rates from 10.3 to 14.5%. They are paying 40% extra since. Hii mbiashara ya mortgage ni upuuus. How do you expect someone to cough an extra 40k (assuming they were paying 100k).
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Is Taking a Mortgage the WORST Decision Ever??
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