If you put all that money in the SACCO (40K per month),in 12 months time,your savings will be 510K thereby making you eligible for 1.53M.That's just about enough to erect a two/three bedroom house less finishing but habitable.........You can spare 150K for a motorbike!.......but still you can accelerate the process by closing your fixed account and dumping that money in the SACCO.6 months later,you can secure a loan of 3 times you savings (I call it using other people's money strategy)......Alternatively,the 25K per month is enough to start buying building materials (kujengea chini)bit by bit,two years down the line you may borrow to pay for labour....but you have to be very disciplined (interestingly,i made steel casing windows for my first house before i even bought land and Mama watoto thought i was nuts.....lol)

@radio - obviously you are on the right path, with your savings and investments - Congrats!

I am just wondering whether it is a good thing for a young man to build a house this soon. (you graduated 2 years ago). I am assuming you don't have a family/wife.

Why not buy more plots of land, which at a later date(right time?) you can sell off and use the proceeds to build.

I have found that some investments like building a home are better made by a couple so that you can merge your ideas of what you want your ideal home to be.

my 2 cents....

@RichVee - I appreciate... but am thinking if I take Guka's second option and prepare the materials, maybe the 'right time' would have come by the time I start building... I usually find life is much easier when one owns a home. By then, one can afford to take risks.

@Guka...a visit to Kinungi revealed that I can actually afford to buy the bulky stuff at very good prices and transport charges. But how disciplined should I be? I've been entertaining an idea to go down south and watch those grown up men chasing around an over price piece of cow skin..lol. are these the kind things to avoid. Anyway, thanks.

@Radio,
Play is good for the heart....By discipline,i meant sticking to the plan.If it's 50K per month dedicated to building,let it be.

@guka...point taken. As Muheani says you are very motivating.


@mwenza... i was directed there by an uncle who has used stones from there for a long time... but i have been told about the silt in the sand from those sides... FYI, my neighbors and I have a employed a guard...

and please don't mention England and world cup in the same sentence... i doubt they will make it beyond the group stage..

@Radio,
Since you graduated 2yrs ago, I'm assuming you are around 25 just about my age. Some of the decisions we make in life come to screw us later on, simply because you had no clue or you made the decision hurriedly.

What @njunge told you is a good idea but if I was to choose that path, I would take that 1.5m and buy a plot or land only. We are talking of a place you intend to live probably for the better part of your life and raise your family. Land is an asset and it's value appreciates with time.

Now if I was in your position, I would do the following;

1. Save for retirement - one thing is choosing to work after retirement and another is having to work. With Kenya's retirement age being 55, you have a lot of yrs in your retired yrs. 1k a month in a retirement account will be huge chunk down the line

2. Establish an emergency fund - equivalent to 6 months your monthly expenses and keep the money in a high interest yielding account e.g money market account.

3. Take up life insurance/Investment fund - This is one thing many people ignore and don't take serious. Check out CFC's Life Vest product and you will not think twice.

4. Invest, Invest and Invest - Kenya's economy is set to explode. Yes (read my words) Please, Please invest in the NSE. Buy stocks with value and growth potential. Choose wisely and balance your portfolio. Kenya is a developing nation, grab some infrastructure and tourism stocks and buy up some retirement stocks like KenGen. trust me, 20yrs from now you will be pleased with your decision to buy KenGen. Currently, the market it at low levels but rising every day.

5. Another great way of owning a house without any out of pocket expense is taking up mortgage with at least a monthly payment of 30k. Depending on the location, you can rent out the house for 50k and you are left with 20k to rent your own place to live. You can always go back to your house if you wish to, but make sure you appoint an agent to avoid defaulters l0l

BTW I'm 25 and I"m doing all the above and live a happy life :)

You are allowed to listen to as many opinions as possible but in the end you make your own decision.

>> @ afro...we are reading from the same script...@ radio, Making a decision to own a house in lieu of building an investment portfolio will stall a lot of capital which can be invested and generate returns to build the house...I would recommend you concentrate your efforts on investing in income generating projects first.