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Africa red hot real estate leads world. Kenya #4
obiero
#41 Posted : Monday, October 29, 2018 5:18:53 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,516
Location: nairobi
maka wrote:
obiero wrote:
MugundaMan wrote:
maka wrote:
Ummh you really are pushing this property agenda... Do you realise some people probably never ever want to own land or. a house....

@maka,
Of course. That is their right and nobody can take it away from them! smile

But it's a sad choice.. Of what use would one be to his/her generations if they didn't at least provide one family house of whatever size


Let's say I have built up a portfolio of circa 10m in fixed income over the past 3-5 years... With an average return of 10pa net... Plus an average maturity period of 20 years... Comes to around 92k pm... Will it be wrong if I rent all through my life...

https://www.google.com/a...ns-to-buy-a-home-2016-9

To each his own boss

HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
Liv
#42 Posted : Monday, October 29, 2018 8:06:43 PM
Rank: Veteran


Joined: 11/14/2006
Posts: 1,311
Chaka wrote:
Liv wrote:

I know a guy who had over 100 acres deep in kitengela... then he suddenly got sick and he needed urgent medical attention abroad.... He tried selling but he couldn't get buyers on time ....he almost died due to lack of cash....but friends eventually fundraised for him


You need a balanced portfolio.... You may have died before those 20 years without enough cash to cover some risks.


What did the guy do with that land after recovery?


He has been selling in parts.

Mike Ock
#43 Posted : Monday, October 29, 2018 9:02:39 PM
Rank: Member


Joined: 1/22/2015
Posts: 682
I've found that the people who are against real estate are usually businessmen who have found higher returns in their businesses. Both are assets, so no side is being foolish in this case
MugundaMan
#44 Posted : Monday, October 29, 2018 9:47:46 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
Chaka wrote:
Liv wrote:

I know a guy who had over 100 acres deep in kitengela... then he suddenly got sick and he needed urgent medical attention abroad.... He tried selling but he couldn't get buyers on time ....he almost died due to lack of cash....but friends eventually fundraised for him


You need a balanced portfolio.... You may have died before those 20 years without enough cash to cover some risks.


What did the guy do with that land after recovery?

Laughing out loudly
MugundaMan
#45 Posted : Monday, October 29, 2018 9:54:10 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
hardwood wrote:
the deal wrote:
@maka the problem with fixed income is inflation...


Due to inflation, after 20yrs maka's 10m investment will be worth 5m in real terms while mugundaman's will be at 50m.


It's a no brainer, baba. Maka is very smart about liquid assets. I can attest to that from the bonds thread. In fact I would argue that he is almost close to the top of any I have "met" hapa Wazoo IMHO. I too also once used to think like him (about liquid assets) many many years ago. Until I saw it happen over and over and over again over many years ....very ordinary fellows walking away with as much as 10,000% returns over a decade in the red hawtt sector that is the subject of this thread . At that point enough was enough and we had to get with the programme fast! There is simply no comparison whatsoever. Not even by a light year, of returns of the R.E Sector in Kenya vis-a-vis any other asset class. Simple economics of supply lagging demand badly that I've been harping about all along explains why. But of course, as always, to each their own! Nobody should feel like a gun is being shoved down their throat to buy real estate Laughing out loudly It's a free country!
hardwood
#46 Posted : Tuesday, October 30, 2018 12:27:31 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
TNT wrote:
popat wrote:
TNT wrote:
You can own a house and sleep hungry. You can rent a home and be as liquid as f***. Cashflow and liquidity rules everything. Some guy in Kiserian owns one of the biggest hardwares in Kiserian and about 5 10-wheelers for transporting building materials to clients, but he doesn't own a home, he rents. Given he makes his rent in a day from his hardware business, that makes perfect financial sense to me.

One can comfort themselves all is ok to run ones affairs without a home until such people die.It can be very nasty for the family left behind especially when they were not involved in the management of such a business.You may be surprised the house is the only asset they can cling to when the shit hits the fan.A house is an insurance.



Being cash rich (liquid) trumps being property rich, especially when one dies. Go ask Njenga Karume's kids. Additionally, most of the people in Nairobi have acres of ancestral land in their rural areas, so I don't understand why such people should buy tiny pieces of plots in the middle of nowhere when they'll eventually move back to their rural areas.

smile
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