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SHARES versus REAL ESTATE
Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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Investors seem divided into two major camps; those who favour shares (Buffet, Kirubi) as the route to riches and those that favour real estate (Trump, S.Githunguri). SKerians, if you won a lottery today (say, 10M) would you invest the majority in shares or real estate? My 2 cents attached the following image(s):  weigh.jpg (3kb) downloaded 6 time(s).
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Rank: Veteran Joined: 5/8/2007 Posts: 885
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my take, currently its far more profitable to dabble in real estate as opposed to shares. i'd put 80% in real estate... plots, and 20% in shares. that's what ave been doing for last 3 years and its been amaizing. for me, shares represent my savings incase I need a lot of money real fast. I have no discipline to keep very much kwa account so..
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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Land prospecting...fun and far much less a heart-ache...Real estate for a hobby and stocks if you are young enough not to die of a heart attack. Nothing great was ever achieved without enthusiasm.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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@Njunge is right age plays a big factor into investment decisions... i say if your below 30 fly into stocks because they never disappoint long term... if you cant tolerate high risk stick to real estate though the gains are smaller than stocks long term Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 6/20/2007 Posts: 2,037 Location: Lagos, Nigeria
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Voice of the Veterans @Pondi, Njunge. I would split it into 40% Stocks 30% Real Estate 30% Other Investments (Money Mkt, managed funds, fixed income) @giru267, What returns more on the long term is relative, it can be stocks , it can be real estate depending on your choices. Stocks is more exciting to me than real estate, but real estate in Africa is a MUST have as a leverage as they only have one definite direction =====> Stable or Up. I like to do what I love best. For real estate ensure you follow due diligence and perfect all pemissible legal documentation(s).
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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In Africa (well, at least in Kenya) the paper that shows your piece of land could be just that... a piece of paper showing you own a piece of land! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Shares are "easier". As young says, you need to ensure you have all the necessary documentation which can be too stressful in Kenya. But for the stock market a CDS Account is very easy to obtain and buying and selling of shares is relatively easy. The hard part comes when you choose which company to put your dough in. GOD BLESS YOUR LIFE
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Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi
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Risk vs reward is definitely higher for shares The Governor of Nyeri - 2017
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Wa_ithaka wrote:Risk vs reward is definitely higher for shares Not if you buy Real Estate in RV... well, for me anyway... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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VituVingiSana wrote:In Africa (well, at least in Kenya) the paper that shows your piece of land could be just that... a piece of paper showing you own a piece of land! Well said. For me nothing is as risky as buying something only to find out there are 10 other claiming ownership. I love shares because... 1. They are highly liquid (which can also be a disadvantage) 2. I can diversify even with little capital. 3. I do not have to chase for dividends unlike say rental real estate 3. I am taxed only 5% on dividends 4. I can know the value of my holdings objectively 5. I have confidence that as long as they reflect on my CDSC statement that they truly belong to me and no other. 6. I can trade online no matter where in the world I am located. 7. RETURNS RETURNS RETURNS
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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And those 7 reasons are exactly why I declare that "Shares TRUMP Real Estate!" GOD BLESS YOUR LIFE
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Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi
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vvs, the ownership risk is also prevalent in shares. Imagine you go trading with one of the smaller brokers like AIB or Drummond or worse, an agent like Tsavo. They go under, si your new name will be "vvs bin hasara". Once you remove the ownership issue, shares start looking v risky because of the many factors not under your control. The Governor of Nyeri - 2017
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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If my corpus was big, i would never touch shares. I would buy land land land, in nairobi, mombasa, UK, US, Iraq, moon, sun... Land is the radical resource from which all others flow... Oil, gold, tea. For now, i seek to diversify like mzee young says. Life is short. Live passionately.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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nice post and even better contribution in the process  i go for 60% stocks and 40% real estate, i am still young enough to beat a heart attack, i just like the thrill of the stocks LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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I once read somewhere It takes 10 years to become really good at something...
So at this stage in my life, I tell you with all honesty, I would not buy real estate, not a dime!!!
Because if I bought real estate, and became really good at the business, I would form a real estate company like Knight Frank. Then it would pay to raise capital and increase shareholding by issuing shares to outsiders.
So when I was younger, I bought shares. These days, I'd use the whole 10m shillings to buy companies.
-I only buy NMG because I'm naturally verbose, and if I could have it, I'd buy the whole company...
-Or Scangroup because I admire the way company is run, and in a second life I'd be in advertising...
-Or Safaricom because Michael Joseph works harder than most men I've met recently and I want him working for me...
etc etcetra...
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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LOL... 'vvs bin hasara'... Just as an FYI... I was at some of these shady guys when they went down in the 1990s... Town & Country, etc... I bailed 100% from Nyaga in the early 2000s as well as Francis Thuo... Pole, pole I ended up with only the 'strong' brokers... I like those backed by BANKS... Maybe not the service lakini the 'safety'... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/6/2008 Posts: 3,548
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Wa-ithaka, crazy sense of humor  geeeez! Keep it up, machozi!!, all the same i think vvs and muganda are right. A New Kenya
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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I once sold my only piece of real estate to invest fully in shares but realised however that when I pass on it would be preferable to to leave the children real estate rather than shares. The latter would be sold in quick order!!!! If the real estate is held jointly, they would have to really think and agree before it was ever disposed off.
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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@2cents - Dude... u will be DEAD... and face it... when there is land involved... all sorts of crazy stuff goes on!!! At least with shares, it is easy & quick... land means more in-fighting I say enjoy ur chumz... if the kids have completed college, u have done your bit! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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VituVingiSana wrote:@2cents - Dude... u will be DEAD... and face it... when there is land involved... all sorts of crazy stuff goes on!!!
At least with shares, it is easy & quick... land means more in-fighting
I say enjoy ur chumz... if the kids have completed college, u have done your bit! The real estate in question is a rental apartment not land. I don't do land. Have you ever heard of boomerang kids? Those are the type that come back home after college and will not leave. Also otherwise called KIPPERS = Kids in parents pockets eroding retirement income 
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