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Housing Fund Shenanigans
Rank: Member Joined: 2/20/2007 Posts: 767
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Once again our guy at the top has conceived a plan to rob the poor so as to house the rich. Meanwhile, contractors, govt wheeler dealers will be running laughing all the way to the bank. Housing fund is a new low in looting using contractors. Kenyas demographics are such that 70% earn less than 50,000 a month. What mortgage can a 50k a month salary pay to house a family. It goes without saying that 80% will contribute for houses that only the few earning 100k and above can afford to buy. Within no time, there will be an oversupply of houses that the bulk of salaried persons cannot take up thus only those in biz and higher salaries will eventually benefit. So the rich will continue to buy more property at decent prices while the poor will continue renting and contributing to build houses they can never afford to buy. Meanwhile, property market will go to the dogs. What *#*@& are running this govt. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 5/2/2018 Posts: 267
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tom_boy wrote:Once again our guy at the top has conceived a plan to rob the poor so as to house the rich. Meanwhile, contractors, govt wheeler dealers will be running laughing all the way to the bank.
Housing fund is a new low in looting using contractors.
Kenyas demographics are such that 70% earn less than 50,000 a month. What mortgage can a 50k a month salary pay to house a family.
It goes without saying that 80% will contribute for houses that only the few earning 100k and above can afford to buy.
Within no time, there will be an oversupply of houses that the bulk of salaried persons cannot take up thus only those in biz and higher salaries will eventually benefit. So the rich will continue to buy more property at decent prices while the poor will continue renting and contributing to build houses they can never afford to buy.
Meanwhile, property market will go to the dogs.
What *#*@& are running this govt. You've even put it politely. What have they to show for the tenant-purchase programmes and affordable housing done by the National Housing Corporation? They self-allocated all of them along with their buddies and mpango-wa-kandos. Only a revolution can save us.
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Rank: Member Joined: 6/15/2013 Posts: 301
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Superprime1 wrote:tom_boy wrote:Once again our guy at the top has conceived a plan to rob the poor so as to house the rich. Meanwhile, contractors, govt wheeler dealers will be running laughing all the way to the bank.
Housing fund is a new low in looting using contractors.
Kenyas demographics are such that 70% earn less than 50,000 a month. What mortgage can a 50k a month salary pay to house a family.
It goes without saying that 80% will contribute for houses that only the few earning 100k and above can afford to buy.
Within no time, there will be an oversupply of houses that the bulk of salaried persons cannot take up thus only those in biz and higher salaries will eventually benefit. So the rich will continue to buy more property at decent prices while the poor will continue renting and contributing to build houses they can never afford to buy.
Meanwhile, property market will go to the dogs.
What *#*@& are running this govt. You've even put it politely. What have they to show for the tenant-purchase programmes and affordable housing done by the National Housing Corporation? They self-allocated all of them along with their buddies and mpango-wa-kandos. Only a revolution can save us. Housing fund is b******t...SMEs struggle to pay their share of NSSF now they are adding this. We learnt only recently of NHIF looting, and as if they should have learnt from NYS 1 an even bigger NYS 2 happened. Lets wait for 5 years to hear of the housing fund scandal.
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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Our economists have failed us. Nobody even the commentators in fourth estate can see the hole govt is digging?
If there was anything urgent the govt needed to do, forget Big 4, is to come up with strategies to create productive jobs (not nys type) for thousands of youths graduating every year. Then, they will be able to rent houses and eventually build / buy for themselves. You don't create jobs by killing the property market coz that what will likely happen if AHP succeeds
If plan 'succeeds', there will be an oversupply of houses at below market prices. Rent for existing properties will drop. Suddenly, investors who borrowed to build rentals can't pay loans. Prices for existing pre affordable housing property will drop. Suddenly, banks can't sell property to recover loans / mortgages in case of defaulters. Welcome to financial crisis. Since independence we have not had a govt that has sunk lower in terms of economic planning.
Right here we arm chair economists could tell (and commented as such) that govt would get nowhere with projects such as:
Galana kulalu, annuity road program, laptop, 5000MW plan, 47 stadia, etc etc and now BRT. As sure as sunrise, they failed flat as expected. Do we have economists in govt? And do they have a voice? Are they given opportunity to speak/critique govt plans? Are they listened to?
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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limanika wrote:Our economists have failed us. Nobody even the commentators in fourth estate can see the hole govt is digging?
If there was anything urgent the govt needed to do, forget Big 4, is to come up with strategies to create productive jobs (not nys type) for thousands of youths graduating every year. Then, they will be able to rent houses and eventually build / buy for themselves. You don't create jobs by killing the property market coz that what will likely happen if AHP succeeds
If plan 'succeeds', there will be an oversupply of houses at below market prices. Rent for existing properties will drop. Suddenly, investors who borrowed to build rentals can't pay loans. Prices for existing pre affordable housing property will drop. Suddenly, banks can't sell property to recover loans / mortgages in case of defaulters. Welcome to financial crisis. Since independence we have not had a govt that has sunk lower in terms of economic planning.
Right here we arm chair economists could tell (and commented as such) that govt would get nowhere with projects such as:
Galana kulalu, annuity road program, laptop, 5000MW plan, 47 stadia, etc etc and now BRT. As sure as sunrise, they failed flat as expected. Do we have economists in govt? And do they have a voice? Are they given opportunity to speak/critique govt plans? Are they listened to?
Some seasoned economist (PhD) told me this is the worst govt we have ever had. That the duo never listen to experts and professionals.
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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hardwood wrote:limanika wrote:Our economists have failed us. Nobody even the commentators in fourth estate can see the hole govt is digging?
If there was anything urgent the govt needed to do, forget Big 4, is to come up with strategies to create productive jobs (not nys type) for thousands of youths graduating every year. Then, they will be able to rent houses and eventually build / buy for themselves. You don't create jobs by killing the property market coz that what will likely happen if AHP succeeds
If plan 'succeeds', there will be an oversupply of houses at below market prices. Rent for existing properties will drop. Suddenly, investors who borrowed to build rentals can't pay loans. Prices for existing pre affordable housing property will drop. Suddenly, banks can't sell property to recover loans / mortgages in case of defaulters. Welcome to financial crisis. Since independence we have not had a govt that has sunk lower in terms of economic planning.
Right here we arm chair economists could tell (and commented as such) that govt would get nowhere with projects such as:
Galana kulalu, annuity road program, laptop, 5000MW plan, 47 stadia, etc etc and now BRT. As sure as sunrise, they failed flat as expected. Do we have economists in govt? And do they have a voice? Are they given opportunity to speak/critique govt plans? Are they listened to?
Some seasoned economist (PhD) told me this is the worst govt we have ever had. That the duo never listen to experts and professionals. I also heard from someone that if you ever went to Kibaki and started talking some economic concepts, he would stop what he was doing, sit up straight and listen keenly. If you started gossip and politics, he would dismiss you outright and act as if you're not in the room. The dynamic duo are not so. If you talk economics, they dismiss you. If you talk politics, they sit up straight and listen!
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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limanika wrote:hardwood wrote:limanika wrote:Our economists have failed us. Nobody even the commentators in fourth estate can see the hole govt is digging?
If there was anything urgent the govt needed to do, forget Big 4, is to come up with strategies to create productive jobs (not nys type) for thousands of youths graduating every year. Then, they will be able to rent houses and eventually build / buy for themselves. You don't create jobs by killing the property market coz that what will likely happen if AHP succeeds
If plan 'succeeds', there will be an oversupply of houses at below market prices. Rent for existing properties will drop. Suddenly, investors who borrowed to build rentals can't pay loans. Prices for existing pre affordable housing property will drop. Suddenly, banks can't sell property to recover loans / mortgages in case of defaulters. Welcome to financial crisis. Since independence we have not had a govt that has sunk lower in terms of economic planning.
Right here we arm chair economists could tell (and commented as such) that govt would get nowhere with projects such as:
Galana kulalu, annuity road program, laptop, 5000MW plan, 47 stadia, etc etc and now BRT. As sure as sunrise, they failed flat as expected. Do we have economists in govt? And do they have a voice? Are they given opportunity to speak/critique govt plans? Are they listened to?
Some seasoned economist (PhD) told me this is the worst govt we have ever had. That the duo never listen to experts and professionals. I also heard from someone that if you ever went to Kibaki and started talking some economic concepts, he would stop what he was doing, sit up straight and listen keenly. If you started gossip and politics, he would dismiss you outright and act as if you're not in the room. The dynamic duo are not so. If you talk economics, they dismiss you. If you talk politics, they sit up straight and listen! I have been here for years talking about this njumbiree useless thing. Now things are starting to be clear to everyone. You can't run a gov't based on rhetoric and kutangatanga and drunken roadside talk. The economy is in shit. But every day they come up with even sillier announcements. From seat belts on Matatus, to sijui new IDs...Kwanza that one is absolutely crazy. To no cars in the CBD days...To new stadiums that will never see the light of day. Now housing...Like seriously. Who is that stupid fella who's going to buy a house sold by njumbiree? Si you go and buy Gakuyo or Cyntonn shares. At least there you have no expectations of being not scammed. Honestly. I am tired of this gov't. Most useless. No wonder we have Pastor Owour amongst us. We have been f***ed so many ways we can believe that Aly Khan Sachu is a guru and Ruto truly bought Weston cleanly...Heck let's go vote for him. Pathetic gov't. End of my rant. Now let me go invest in Cyntonn. Thieves are not good people. Tumeelewana?
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Rank: Member Joined: 2/20/2007 Posts: 767
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My scenarios for housing fund are as follows 1. The money raised is used to build houses but the quantity built will not come anywhere near the projected 500k. Most of the cash disappears in "unfathomable " ways. 2. They build many houses beyond dust bowl. This comes with no additional infrastructure for transport. No body is inclined to go there so we get ghost estates for a long while. 3. They actually build the houses as planned 500k per year in urban centres and completely collapse the housing / real estate market. ( highly unlikely). How will Northlands city get buyers seeing this is a Kenyatta family project. 4. Housing fund cash is diverted to pay loans while building bare minimum units and giving many excuses. This govt could not roll out computers in schools, a fairly easy thing to do. Now, they tell us they cal roll out massive housing projects involving multiple ministries, land compensation issues etc and all in the next 3yrs, yah right and pigs will fly. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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tom_boy wrote:My scenarios for housing fund are as follows
1. The money raised is used to build houses but the quantity built will not come anywhere near the projected 500k. Most of the cash disappears in "unfathomable " ways.
2. They build many houses beyond dust bowl. This comes with no additional infrastructure for transport. No body is inclined to go there so we get ghost estates for a long while.
3. They actually build the houses as planned 500k per year in urban centres and completely collapse the housing / real estate market. ( highly unlikely). How will Northlands city get buyers seeing this is a Kenyatta family project.
4. Housing fund cash is diverted to pay loans while building bare minimum units and giving many excuses. This govt could not roll out computers in schools, a fairly easy thing to do. Now, they tell us they cal roll out massive housing projects involving multiple ministries, land compensation issues etc and all in the next 3yrs, yah right and pigs will fly. Your scenario 4 most likely, though am yet to understand what the fund is meant for in the first place since the houses will be built by private investors, and the buyers will buy via mortgage meaning they still pay full price despite contributing to the fund. The other thing i do not understand is how you can talk of affordable housing or below market price housing yet you cant purchase construction materials below market price, you cant pay labour below market, and house sizes have been standardized by the code so you cant build smaller houses beyond certain sizes. #Economics 101 someone tell the govt that the reason houses cost what they cost is that developers have to make profit, pay taxes, pay approval fees, and pay salaries for people employed in the entire supply chain..from quarries to designers to fundis. If you wake up one morning and give everyone a house, you don't need to be rocket scientist to tell me what impact that will have on the economy
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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limanika wrote:tom_boy wrote:My scenarios for housing fund are as follows
1. The money raised is used to build houses but the quantity built will not come anywhere near the projected 500k. Most of the cash disappears in "unfathomable " ways.
2. They build many houses beyond dust bowl. This comes with no additional infrastructure for transport. No body is inclined to go there so we get ghost estates for a long while.
3. They actually build the houses as planned 500k per year in urban centres and completely collapse the housing / real estate market. ( highly unlikely). How will Northlands city get buyers seeing this is a Kenyatta family project.
4. Housing fund cash is diverted to pay loans while building bare minimum units and giving many excuses. This govt could not roll out computers in schools, a fairly easy thing to do. Now, they tell us they cal roll out massive housing projects involving multiple ministries, land compensation issues etc and all in the next 3yrs, yah right and pigs will fly. Your scenario 4 most likely, though am yet to understand what the fund is meant for in the first place since the houses will be built by private investors, and the buyers will buy via mortgage meaning they still pay full price despite contributing to the fund. The other thing i do not understand is how you can talk of affordable housing or below market price housing yet you cant purchase construction materials below market price, you cant pay labour below market, and house sizes have been standardized by the code so you cant build smaller houses beyond certain sizes. #Economics 101 someone tell the govt that the reason houses cost what they cost is that developers have to make profit, pay taxes, pay approval fees, and pay salaries for people employed in the entire supply chain..from quarries to designers to fundis. If you wake up one morning and give everyone a house, you don't need to be rocket scientist to tell me what impact that will have on the economy My overstanding of why the units will be cheaper is taht 1. Government will provide free land to developers 2. Developers will be allowed to set aside a percentage of free land to develop and sell houses at market rates on cash basis alone to help them recoup and make profit margins 3.Access to cheaper financing to developers from KMRC. 4.Government will be responsible for infrastructure(sewage, water, electricity, roads. 5. Government will guarantee uptake of the houses through the NHDF If Obiero did it, Who Am I?
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