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10-12M mortgage
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Bachuma Gate
#21 Posted : Monday, April 18, 2016 7:31:24 PM
Rank: Member

Joined: 3/26/2012
Posts: 280
Other areas Doonholm; Tassia Ayany etc Bungalows with big compounds.
DOH
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Chaka
#22 Posted : Monday, April 18, 2016 8:25:54 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Bachuma Gate wrote:
I wouldnt accelerate payments if the job is secure n salo okay. You will miss out on the concessional interest. Do an excel work out.

Having said that; go for not so mordern house but on a big compound. Eg Otiende; kimathi east. In future you can demolish the house and build flats.

Will there always be a demand for flats?Will the demand always be exponential vis-a-vis the supply?
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Xymalos
#23 Posted : Monday, April 18, 2016 10:04:00 PM
Rank: New-farer

Joined: 2/14/2015
Posts: 98
Location: Kenya
Chaka wrote:
Bachuma Gate wrote:
I wouldnt accelerate payments if the job is secure n salo okay. You will miss out on the concessional interest. Do an excel work out.

Having said that; go for not so mordern house but on a big compound. Eg Otiende; kimathi east. In future you can demolish the house and build flats.

Will there always be a demand for flats?Will the demand always be exponential vis-a-vis the supply?


The growth of urban population is exponential. The growth of housing (flats, maisonettes, bungalows) is low compared to demand. But currently, there may be flats not occupied because people's incomes do not allow them to afford certain rental properties. With a growing economy and family incomes - demand for rental properties will be there in foreseeable future.
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tnai9
#24 Posted : Tuesday, April 19, 2016 8:23:30 AM
Rank: Member

Joined: 6/21/2010
Posts: 345
Location: easto
FRM2011 wrote:
Boss at 3% you don't even need a calculator. You are getting free money (inflation @7%).

Another sweetener, mortgage relief of up to 12,500 deductible from taxable income.

If your employer can agree to effect the above at source, your monthly interest charge drops by another 4k.

However, you need to find out who caters for the fringe benefit tax I.e. the difference between what you are paying in interest and what kra thugs usually call the fringe benefit tax rate. It's usually announced quarterly and it's the average of 91-day t bill rate for the preceding quarter.


I am told there is no tax relief. That the interest rate is too low.
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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tnai9
#25 Posted : Tuesday, April 19, 2016 8:25:06 AM
Rank: Member

Joined: 6/21/2010
Posts: 345
Location: easto
Bachuma Gate wrote:
I wouldnt accelerate payments if the job is secure n salo okay. You will miss out on the concessional interest. Do an excel work out.

Having said that; go for not so mordern house but on a big compound. Eg Otiende; kimathi east. In future you can demolish the house and build flats.


A nice angle to it..Thanks
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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dpmungai
#26 Posted : Tuesday, April 19, 2016 9:38:50 AM
Rank: New-farer

Joined: 10/16/2014
Posts: 33
Agreed. 3% interest rate is a real bargain.

You could go for a standalone house on a big compound. 1/4, 1/2 etc in a satellite town around Nairobi. Instead of renting, you could move in and use the rest of the land for some income generating business e.g farming or with time build some rental units.
In future even if you were to dispose to pay off the mortgage, you can subdivide, sell off the house and still have some land remaining where you could build own house etc.
An apartment would not give you those options.
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Jon Jones
#27 Posted : Tuesday, April 19, 2016 11:06:57 AM
Rank: Member

Joined: 9/11/2015
Posts: 245
Location: Thika
dpmungai wrote:
Agreed. 3% interest rate is a real bargain.

You could go for a standalone house on a big compound. 1/4, 1/2 etc in a satellite town around Nairobi. Instead of renting, you could move in and use the rest of the land for some income generating business e.g farming or with time build some rental units.
In future even if you were to dispose to pay off the mortgage, you can subdivide, sell off the house and still have some land remaining where you could build own house etc.
An apartment would not give you those options.

This guy is right. I never quite understand why people buy overpriced apartments in Kenya. You are better off buying land with the money and building a bungalow. You OWN the land and can utilize it however you want.
Since men have learned to shoot without missing, I have learned to fly without perching
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Rahatupu
#28 Posted : Tuesday, April 19, 2016 1:14:35 PM
Rank: Veteran

Joined: 12/4/2009
Posts: 1,982
Location: matano manne
T9,

Please note the interest rate is 5% being made of 3% GOK offering and 2% bank administration charges.
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tnai9
#29 Posted : Tuesday, April 19, 2016 3:23:16 PM
Rank: Member

Joined: 6/21/2010
Posts: 345
Location: easto
Rahatupu wrote:
T9,

Please note the interest rate is 5% being made of 3% GOK offering and 2% bank administration charges.


My employer covers the 2%. There is also stamp duty, legal fees and some other one off charges.
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
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Rahatupu
#30 Posted : Tuesday, April 19, 2016 5:03:26 PM
Rank: Veteran

Joined: 12/4/2009
Posts: 1,982
Location: matano manne
tnai9 wrote:
Rahatupu wrote:
T9,

Please note the interest rate is 5% being made of 3% GOK offering and 2% bank administration charges.


My employer covers the 2%. There is also stamp duty, legal fees and some other one off charges.
.

Really? Impressive go for it. (pls don't forget to share kwa inbox)
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