Wanyee as much as I hate to say it, please read murchr's posts on the internet or take any business for example.

Business people do not buy land. They rent your house.

Since this is an investor's forum, let me ask you like seriously.

Why should I buy land for lets just say 1 million for an 1/8

Kenyan reasons

I million shillings shall become rental income of 15 1 bedroom houses for 10k each giving me a guaranteed 150k per month.

It sounds very nice until you hear KRA is busy looking for you matapakas and honesly 150k in Nairobi means you rent a house in Embakasi as you wait.

Wait, Wait. for the property appreciation. After all all property values go up.

Please do not compare yourself to your grandfather in 1970. There comes a time when prices flatline. In each and every business. Every business.

Now since we are in 2016. Some mama goes with the same 10k dollars to shaina. She buys a few bed spreads for 500 bob and sells them in facebook for the low low price of 2k. Her cost 1k her profit 1k.

Why the hell do you think you are seeing very many women going to shaina?

Then they come back and buy your kabroti. Not to sell it for a profit today but to hold onto it coz every Kenyan want's land. Why do you think they sell to you. When shit hits the fan she sells the land to you and goes back to shaina. She then sells you the sheeap branket for another of your 2k.

I just don't know what to say.

Whilst the youth in other countries have moved on to understanding the meaning of adding value, the Kenyan youth are still trying to be like our grandparents.

The stories of the young rich in Kenya are there for you to see. Instead of buying land Keroche decided to sell you beer. Now they own a house in Muthaiga. Instead of buying land, Lamudi has convinced each and every property firm in Kenya to pay them minimum 10k per month just to be listed.

Let me ask you with all sincerity. What happened to Tysons, Llyod Masika etc. They have gone so low that they pay a mbeberu every month to list their property. What was so hard for them to do it themselves?

Instead of buying land, you wazuan are busy making Jumia nigerian kids billionaires.

Lamudi, Jumia are making more returns in a day than the land buying Kenyan. Tafakari hayo.

You continue buying land. Unless you are a property management firm that has the skills to maneuver the market, I don't see why you should not be like nice and lovely, go to shaina and get a factory to manufacture.

I'm talking like an old man who has seen this wave pass me by. I really hope the young in Kenya don't waste time on land but waste their time on manufacturing and leverage.

Getting a Kenyan mortgage...means you are one of the most stupid humans in the world. Ati I pay you 25% and you give me 1% interest on my money. let me take it to karumaindo.

hindsight though I'm happy quoting me, that means nothing

My friend some fellows here are so disappointed, they have even got my lecturers

I don't invest in property at all. Maybe I'm scared its ok. If the issue is where I'll be buried.....I'll be too dead to care.

Tysons is dead, swaziro just sounds stupid when he opens his mouth

yes I had my lecturers. Smoking wanjala, ahmednassir, swazri etc.

All these fellas cannot be trusted.

Surely how can you trust ahmednassir when he used to give us the questions and the answers before the exam date.


Let him say it was not true. Ahmednassir is fake. Smoking wanjala is too excited. He never thought

By the way I'm saying all this coz some stupid kid thought and set up some of these guys names.

I don't care about a doctor in ADD. these people are thieves and thugs. With doctor degrees

I am land economics degree holder if that makes you wank. I'm also Cfa certified,....And I'm also a property agent in Massachusetts, new Hampshire, Connecticut, and new york. And yes masomo sio kuwacha but my shoo.. was good school.


So when some f***er comes here and tells me about Swazuri. That fellow is just the worst liar in the world. Just a paid liar. Winnie who? Jinga sana. your valuers said that a buroti was cool Swazuri areed.
yes tell him i said, he's just joking and shall be fucing taita chicks.ohhh tell him to sue me./

Getting a degree and some stupid doctorates in Kenya means that you drive a BMW.....But being educated is another issue.

Ati winnie and swazuri. Do you know that that noisemaker whos was fired used to give a girl in my class A's. ...the rest of us got D's. He was called lumumba....mjinga tu,
WWini

The population of the USA has grown from 100 million to over 300 million from 1920.

The income average in the USA was $1407 in 1920.

Real median household income in the United States in 2010 was $49,445

In 1990 it was $23000.

Property crash with less than 6% interest. You can talk about sub prime lending as much as you wish but surely in Kenya, what do you call 25%. That's shylocking with the law.

Please tell me the stats for Kenyans. Even 50k is a dream for most Kenyans.

Anyone who uses the population as a sign in property values is simply a charlatan.

Property values have nothing to do with population. They have everything to do with income.

That is why though the population in New York is higher than the population in San Fransico, the prices in real estate are higher in San Fransico are higher. Why? Income

That is economics 101.

Please read this if you can understand it

http://www.forbes.com/si...age-rates/#224534f8378d

Population has nothing to do with pricing. Its effective demand that matters.

As long as I see a 75 million shilling half acre in Nairobi yet the yearly income median is less than 50k a month, that's what I call a bubble.

Yaani definition ya middle class is based on income and not wealth?

This weekend I went to visit a friend of mine. His neighbour has put his house on the rental market. It's a beautiful four-bedroomed bungalow, with a two-bedroomed servants' quarters, on a quarter acre of land. He's put it on the market for KSh 120,000 a month. I asked around about how much similar houses are sold for in that neighbourhood, and the prices are in excess of KSh 40 million.
Let's take a minute to digest and analyse that. If you paid cash for that house and rented it out, you would make your money back in three hundred and thirty three months. That's almost twenty eight years. House prices are like stocks - you can use a basic price/ rent, which is analogous to a price/ earnings (or PE) ratio to determine whether a house is under- or over-priced. Long-term average is around 16. This particular house is at 27.7.
Another calculation. If you convinced your bank to provide you with a mortgage, and you financed the house at 18% (and you'd need to be VERY good friends with your bank manager to get that), you'd be paying KSh 617,000 every month for twenty years. So, in effect, if you took out a mortgage in the hopes of renting the house out, you'd need to shell out almost KSh 400,000 a month more out of your own pocket just to break even.
One last thought nugget. People tell you to not take a mortgage and save. However, saving in a medium-to-high inflation environment is the equivalent of borrowing at a high rate. So, if you save to buy (either a ready home or land on which to build), you're effectively borrowing money at around 7-10%, depending on the economic environment.
Let me end with a (possibly apocryphal) story before I give you my conclusion. A lady put up a house some years ago in South 'C'. She had put it on the market for KSh 9 million, but she realistically expected 8 million bob for it. One day, someone came to view the house, and made an offer of KSh 12 million. From that point on, the lady refused to entertain any offers below KSh 12 million (which, you'll remember, was 50% above what she was initially expecting). The phantom buyer never turned up again, but as far as the lady was concerned, the house's value was KSh 12 million, and not a penny less. She finally sold it after many moons.
Kenya's property market is in a bubble. The bubble is still inflating, and if it doesn't get deflated gently, it will burst very painfully. Real estate prices are almost totally unmoored from their true values, and what's keeping them up there is hope, greed and fear (and a generous helping of dishonest money). Everyone's a property speculator and dealer. All power to them, but when the music stops, there'll be plenty of people left without chairs. When the tide goes out, you'll realise how many people were swimming commando. Take your pick of trite metaphor, but don't say you weren't warned.

There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).

This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).

If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?

I hope young Wazuans don't get taken in and forget that every story is only half a story at best.

www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html