By current rates, to make 300k pm from rental you need to spend upwards of 30m. Unless you are versed with nitty gritties of construction A-Z and king of cost saving like the proverbial Pablo. My 2 cents.

Ok xyma, all the best. When done with project you could buy some land in outskirts and do some farming, just to keep you busy.

@obiero...what happened in Kitengela? multiple ownership and fake title deeds??

Even the government does;nt borrow at those rates and the yields from T-bills and bonds is way above that; so why would banks give you a mortagage at 3% when they can buy t-bills and bonds at 10%+?

They should have asked government to use the monetary policies to manage interest rates

I will begin by saying that this is one of the super threads on this forum even surpassing the KQ thread.

I can reliably claim that the dreaded property burst is here with us. I can say that reliably because I have personally gone through a property burst and the data coming in is evident and the gimmicks now being applied by land selling companies.

According to a story I read recently there shall be 25 more high rise properties coming up in Nairobi in the next 5 years. However, the current high rises in Westlands, Upper Hill, City Centre remain unoccupied. If you don't believe me, step out of your car and walk. Don't read Cynton or Hass Consult reports, just take a walk.

The financing of properties in Kenya is just ridiculous to say the truth. It is easier to buy a kashamba in Florida and Kent UK than it is to buy a kabroti in Maili Sita.

That's why you should not be awed by someone who has an apartment in Lowell Ma, the fellow is only paying about 70k a month for a his mortgage. In Kenya, that is not rent in South C. Tafakari hayo.

Of course someone shall say that Kenya is not USA. I'll tell him that property is property.

If there is poor financing in property, then prices shall and must take a tumble. That is economics 101 and not patritism.

But it is time this happened. Too much land in Kenya is bought through illegal means. Fake titles, fake acquisitions, fake money enve the owners are called private developers.

Why do I say that it is happening now?

As I said, take a walk around. See how many tubrotis are up for grabs. Of course the developers cannot reduce the pricing since they have to pay the loans. But it is happening as we speak.

I have friends with land around Kikuyu, Thika road etc that people are just looking at and then saying "we shall come tommorow".

Property bursts are not reported in the newspapers. If they are, it is too late.

Swenani in normal economies buying and selling property in distress is what makes an economy thrive.

If I have a mortgage in Massachussets, I can agree to sell it at a lower price to someone else to ensure that at least my debt is covered. Even now just google auctioned properties and even you Swenani can participate.

But this is Kenya

So lets say exactly what happens. There are even court cases about this. I belive Muite had a huge case about this too.

I have a property valued at 10 million. My mortgage debt is 2 million. The godammed bank will not allow my to sell that property for 8 million. They ought to but they won't.

What they shall do is send goons at night to remove me. Then sell it at night in the interbank theiving moments to the director for 2million who then proceeds to sell it to his buddy at 2.5 million. A loss to the country of 7.5 million in value. If you think this tabia does not affect the country then go back to school.

There are auctions announced in the papers every day. Do yourself a favor and try and participate in one. You won't even be able to buy a kijiko.

Corruption has suddenly caught up with Kenyans and the bloodbath shall not be nice. you can't play around with math.

I'm shopping for deals in property. Not from the usual sijui "developers". Just shop quietly from locals, there are lot of deals out there. Especially with the cost of living increasing in fact but decreasing in paper.

Right now the number of empty rentals in Kikuyu town would surprise you. Increase rent by 1k and they leave. That's just a sign of the times ahead. Or just ask Home Afrika.

Yes, just as the stock market advise is to hold your cash, the property market is even sweeter. Don't look at price, look at value.

There's a town center somewhere where the owners have not been able to complete their multistorey building. We call that opportunity.

My view on the property market is that the way Kenya is setup, even when the bubble has burst, you shall still get uneducated and compromised journalists telling you how hot the market is.

Your best option is walk away from your car and actually go door to door. You shall be surprised.

Keep away from grandiose projects. The most grandiose project in Kenya was South C. When it rains, you have to move your furniture to the upper floors. Even worse, your water is mixed with the sewage.

That is not investing, that is taking unneccessary risks.

And as this topic says, keep away from these mortgages. Just don't and don't even listen to these banks. I have friends who borrow in the US for 3% and buy in Kenya. How the hell are you supposed to compete like that?


Discounts are there if you stop talking to brokers and "property experts".

Mark Zuckerberg got his mortgage at 1%. The rest of the Americans were getting theirs at between 2% and 4%.

Giving a whole new meaning to "the" 1%

I always wonder why KRA has shortfall on tax collection!!!

There is an oversupply of office space in Nairobi, so lets say the bubble has already burst for office complex developments.