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Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 7/22/2009 Posts: 7,455
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tom_boy wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Bwana Maich wacha stress, the flat is 34 m because there are willing buyers at that price ... In Kenya What stress??? I'm just stating a fact! since when did stating a fact qualify to be called stress?? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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The flats could be 3.4m  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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Angelica _ann wrote:tom_boy wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Bwana Maich wacha stress, the flat is 34 m because there are willing buyers at that price ... In Kenya  For the flat to be 34m and not 20 or 25 or 30 means NSSF have done market study and established that there are people who are able and willing to buy at that price. How they fund the 34m is thier business! I thought @wazua was supposed to be about reasoning, value for money etc. All over sudden we have deteriorated to a willing buyer - willing seller forum??? In that case, we should have been advising people to buy Home Africa shares at 25/= because there were people selling and buying at those prices!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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@MB i take back what i said - wazua is to learn and open our eyes that is true. However when some of the people buy some of the housing units at crazy figures, they buy more than the house. It could be convinience e.g. near good schools for children and easy access to workplace, peer pressure, job negotiated buy outs, etc. I think that is why at end of the day sellers work with peoples emotions and make a kill. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Or 34 million Zim Dollars! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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I saw the NSSF advert on tuesday and I also wondered..At the quoted prices NSSF should have put a full page Ad..the one they put was rather small.One of the the selling points was that there are two access roads..one of them I believe is via state house road..The application form is 2K..May be these guys have CS's,governors,their deputies etc.. in mind..
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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they need to specify the currency on a serious note
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? you can "accelerate" this to 2,500,000/= per month
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Rank: Member Joined: 2/20/2007 Posts: 767
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MaichBlack wrote:Angelica _ann wrote:tom_boy wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? Bwana Maich wacha stress, the flat is 34 m because there are willing buyers at that price ... In Kenya For the flat to be 34m and not 20 or 25 or 30 means NSSF have done market study and established that there are people who are able and willing to buy at that price. How they fund the 34m is thier business! I thought @wazua was supposed to be about reasoning, value for money etc. All over sudden we have deteriorated to a willing buyer - willing seller forum??? In that case, we should have been advising people to buy Home Africa shares at 25/= because there were people selling and buying at those prices!!! Bwana Maich, sio kwa ubaya lakini one fact of life is that the more money you have, the more divergent your 'value for money' becomes compared to the guy with less money. Let me explain, if I make 2.5M a month ( and there are professionals in Kenya who make that cash in a bad month - I kid you not) or I own an SME that makes 5m a month, I will not see any problem with buying that 34m flat as long as it serves my other intagible needs e.g prestige, refuge for my mpango wa kando, city home that is near my office ... etc etc. At that level of income, my real estate purchases are not really about how much money I can get out of it, but how much enjoyment I will get from it. I will therefore not hesitate to buy a 22 0r 34 million house as long as it serves my needs and will probably buy it for cash or a very short term mortgage and the number of Kenyans with such capacity are more than the supply of such houses. 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: Elder Joined: 7/22/2009 Posts: 7,455
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Pablo wrote:
Been looking thro this from the sidelines.
Motrguages work for some people and will not work for others (kama mimi). Building on the other hand ni kazi but as someone has said in 2 - 3 years sometimes 4 years na umemalizana na madeny.
The only good thing i see from mortguages is that you can get a house where you (and your pocket) wants. I have never seen the logic of living in a place where you wake up at 4am every day and arrive home at 9pm sababu umejenga sijui Isinya. That reduces your quality of life.
I know families who have moved out of their Karen & Kiambu Rd Mansions to live in Apartments on Ngong Rd.
why did they relocate?
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Rank: Member Joined: 1/24/2011 Posts: 407 Location: Nairobi,Kenya
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I built my own home in the outskirts of Nbi...After all the 3 yrs hustle,The challenges reamins especially in things beyond my control. 1.Whenever it rains,getting to my home is a challenge yaani the road gets washed away because the council has not any roads. 2.Lack of a proper sewer system brings serious challenges. 3.My neighbour has put up temporary structures next to his unfished house..damn1 4.My other neighbour has put up containers and is planning to rent them out as shops 5.No schools nearby 6.No shopping centre nearby 7.I have to leave my home before 530am everyday to beat the morning traffic. 8.Security...no problem though..not with my 4 rottweillers which shit all over my 1/4 plot. Well,despite these challenges,Sometimes I think that I made the good decision.Maybe in future this issue esp on the gavas side will get resolved.The bottom line is when you decide to build your own home be ready to face all these challenges amongst others.. Hope is not a strategy
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@sanity,
Thanks for saying it as it is.Another thing I don't like is those narrow access roads as is the case huko Rongai.Do you have a spouse?I believe the decision whether to go and live at the outskirts is much easier when one is alone..
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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Why are people equating not taking a mortgage to building a house in a poorly serviced distant place? You can buy or build in an 'acceptable' neighbourhood whether you do it in cash or mortgage! You can buy or build in some poorly serviced distant neighbourhood - in cash or mortgage! Let's not get issues mixed up to raise more heat than light! No one was ever stopped from building (or buying) a house in Runda, Karen, Milimani, Muthaiga, Muthangari etc. using (his/her) cash! And some of those houses in Kiserian, Isinya and such like places are on mortgage! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: New-farer Joined: 5/7/2014 Posts: 40
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MaichBlack wrote:Why are people equating not taking a mortgage to building a house in a poorly serviced distant place?
You can buy or build in an 'acceptable' neighbourhood whether you do it in cash or mortgage! You can buy or build in some poorly serviced distant neighbourhood - in cash or mortgage!
Let's not get issues mixed up to raise more heat than light! No one was ever stopped from building (or buying) a house in Runda, Karen, Milimani, Muthaiga, Muthangari etc. using (his/her) cash! And some of those houses in Kiserian, Isinya and such like places are on mortgage! With 1m, you can either buy a 10m apt in a serviced area of NBO eg MSA road or Langata, or you can buy a plot in an un-serviced area, and later build a house. That is why the comparison is appropriate.
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Rank: Member Joined: 3/17/2008 Posts: 567 Location: Nairobi
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@ Lolest..,
These guys moved for a number of reasons the main ones being security and commuting time. They still rent out their houses tho.
With cash am sure as Maichblack says you have options but when the cash is a blocking point like it is for 95% of us the options are fewer and the open ones are in far off places. I mean somebody with 30M to buy a half acre in runda cash is not the same as someone who has over the years saved up 1M. So MaichBlack, morguage or cash are related to location.
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Rank: Member Joined: 5/9/2011 Posts: 786 Location: Mashinani
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omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal No its not a good deal. 34million can buy you a 4 bedrrom house with an SQ on kiambu road for 32M Peace in our Homeland.
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Rank: User Joined: 1/20/2014 Posts: 3,528
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Mortgage interest rates in Kenya are too high. But if you can get <10%, then you are good to go though law interest rate benefit will get you though albert in a small way! Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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sanity wrote:I built my own home in the outskirts of Nbi...After all the 3 yrs hustle,The challenges reamins especially in things beyond my control.
1.Whenever it rains,getting to my home is a challenge yaani the road gets washed away because the council has not any roads.
2.Lack of a proper sewer system brings serious challenges.
3.My neighbour has put up temporary structures next to his unfished house..damn1
4.My other neighbour has put up containers and is planning to rent them out as shops
5.No schools nearby
6.No shopping centre nearby
7.I have to leave my home before 530am everyday to beat the morning traffic.
8.Security...no problem though..not with my 4 rottweillers which shit all over my 1/4 plot.
Well,despite these challenges,Sometimes I think that I made the good decision.Maybe in future this issue esp on the gavas side will get resolved.The bottom line is when you decide to build your own home be ready to face all these challenges amongst others.. Finally an honest opinion, yes this is the decision one has to make between a mortgage and kujenga. One has to be very careful especially if you have school going children. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 5/1/2010 Posts: 3,024 Location: Hapa
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Pablo wrote:@ Lolest..,
These guys moved for a number of reasons the main ones being security and commuting time. They still rent out their houses tho.
With cash am sure as Maichblack says you have options but when the cash is a blocking point like it is for 95% of us the options are fewer and the open ones are in far off places. I mean somebody with 30M to buy a half acre in runda cash is not the same as someone who has over the years saved up 1M. So MaichBlack, morguage or cash are related to location. Welcome back @Pablo. There were two threads on wazualets looking for you  Float like a butterfly, sting like a bee. - Muhammad Ali🐝
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