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Real Estate in Kenya
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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MugundaMan wrote:Wakanyugi wrote:
Thus speaks the armchair investor. The typical spiel is to criticse but offer no alternatives. I have lost count of the number of times I have made money by reading such so called advise on Wazua and doing the exact opposite.

Too funny and yet so true, brother!
I was one of those who started out a long time ago listening to what I thought was very convincing spiel of "armchair investors" who chided me with harsh tones and waggy fingers about the perils of investing in real estate in Kenya. But when I saw my risk-taker peers minting big time from very modest investments in far flung areas held over time, I got religion fast! No other investment in this here Kenia comes close to matching the stability, safety and consistency of real estate of any form well bought and held over the long term, whether developed or not.
Where do you get money to buy real estate? You probably work an 8 to 5 desk job for which you receive a salary at the end of the month (in arrears).
You put aside some savings for 5 years, take a sacco loan to buy a 1/8 plot of land at Rongai. How many people do you employ? What your contribution to the economy?
Now ask yourself, who is the genius? The person you work for 8-5 or yourself?
You sell your empty 1/8 plot in Rongai after 5 years for double the price. You are now a certified genius right?
But wait, what would have happened if GOK didn't upgrade that dust road, your neighbours didnt build those nearby schools, nyama choma vibandas, clinics?
But wait, why are you working your 8-5 job? I thought your real estate investment made you rich? Now your employer has transferred you to Rongai Branch as the Assistant Manager? Who is the genius, you or your employer?
Lesson for the day:- Passive real estate is an investment for the lazy and unimaginative.
Life is short. Live passionately.
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Rank: Member Joined: 2/20/2007 Posts: 767
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sparkly wrote:MugundaMan wrote:Wakanyugi wrote:
Thus speaks the armchair investor. The typical spiel is to criticse but offer no alternatives. I have lost count of the number of times I have made money by reading such so called advise on Wazua and doing the exact opposite.

Too funny and yet so true, brother!
I was one of those who started out a long time ago listening to what I thought was very convincing spiel of "armchair investors" who chided me with harsh tones and waggy fingers about the perils of investing in real estate in Kenya. But when I saw my risk-taker peers minting big time from very modest investments in far flung areas held over time, I got religion fast! No other investment in this here Kenia comes close to matching the stability, safety and consistency of real estate of any form well bought and held over the long term, whether developed or not.
Where do you get money to buy real estate? You probably work an 8 to 5 desk job for which you receive a salary at the end of the month (in arrears).
You put aside some savings for 5 years, take a sacco loan to buy a 1/8 plot of land at Rongai. How many people do you employ? What your contribution to the economy?
Now ask yourself, who is the genius? The person you work for 8-5 or yourself?
You sell your empty 1/8 plot in Rongai after 5 years for double the price. You are now a certified genius right?
But wait, what would have happened if GOK didn't upgrade that dust road, your neighbours didnt build those nearby schools, nyama choma vibandas, clinics?
But wait, why are you working your 8-5 job? I thought your real estate investment made you rich? Now your employer has transferred you to Rongai Branch as the Assistant Manager? Who is the genius, you or your employer?
Lesson for the day:- Passive real estate is an investment for the lazy and unimaginative.
Kweli kabisa @ sparkly. It is a sad state of affairs that people think buying a kaplot to sell at a later date = stellar investment acumen. This kind of investment leaves most people poor in the long run, paper rich and cash poor.
Things would be ironed out if only our lazy bonehead politicians would introduce a land tax so that only people who actually intend to generate a regular return from the land will be willing to buy land.
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: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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sparkly wrote:
Where do you get money to buy real estate? You probably work an 8 to 5 desk job for which you receive a salary at the end of the month (in arrears).
You put aside some savings for 5 years, take a sacco loan to buy a 1/8 plot of land at Rongai. How many people do you employ? What your contribution to the economy?
Now ask yourself, who is the genius? The person you work for 8-5 or yourself?
You sell your empty 1/8 plot in Rongai after 5 years for double the price. You are now a certified genius right?
But wait, what would have happened if GOK didn't upgrade that dust road, your neighbours didnt build those nearby schools, nyama choma vibandas, clinics?
But wait, why are you working your 8-5 job? I thought your real estate investment made you rich? Now your employer has transferred you to Rongai Branch as the Assistant Manager? Who is the genius, you or your employer?
Lesson for the day:- Passive real estate is an investment for the lazy and unimaginative.
If you have to grope in the dark seeking answers to some of these questions then clearly you are not cut out for real estate, brother. Just mark time hapo hapo waiting for Godot, munching your "safe" payslip nation paycheck monthly
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Rank: Veteran Joined: 11/13/2015 Posts: 1,658
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Superwoman910 wrote:Superprime1 wrote:What type/kind of an investment in real estate? Is it rental income-generating commercial or residential property/ies? Or are you intending to buy land and hold to sell in future? And which market segment are you interested in or focused on? BTW, buying Stanlib Fahari I-Reit is another way of investing in real estate....
I think rental (residential) is the best way to go. Cytonn has some pretty good looking properties that are also affordable (in Ridgeways and Ruaka). Just want to make sure it is the absolute best decision before investing with them
You have to forward thinking in real estate to make the right investment. If you look at the traffic projections for Nairobi 2030 it will not make sense to live far from CBD. Ruaka is a horribly planned settlement you won't like that neighborhood in 15-20 years. Check google maps if you doubt
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Rank: Veteran Joined: 11/13/2015 Posts: 1,658
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MugundaMan wrote:
If you have to grope in the dark seeking answers to some of these questions then clearly you are not cut out for real estate, brother. Just mark time hapo hapo waiting for Godot, munching your "safe" payslip nation paycheck monthly
Buying empty lots in the Kajiado dust bowls  .
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Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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wukan wrote:MugundaMan wrote:
If you have to grope in the dark seeking answers to some of these questions then clearly you are not cut out for real estate, brother. Just mark time hapo hapo waiting for Godot, munching your "safe" payslip nation paycheck monthly
Buying empty lots in the Kajiado dust bowls  .
Absolutely. But did you forget that dust from Uhuru Hwy is heaviest in your cramped CBD office where the modern slavery for the boss is no joke and the crumbs gleaned are heavily taxed and marginal at best  ?
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Rank: Veteran Joined: 1/20/2011 Posts: 1,822 Location: Nakuru
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wukan wrote:Superwoman910 wrote:Superprime1 wrote:What type/kind of an investment in real estate? Is it rental income-generating commercial or residential property/ies? Or are you intending to buy land and hold to sell in future? And which market segment are you interested in or focused on? BTW, buying Stanlib Fahari I-Reit is another way of investing in real estate....
I think rental (residential) is the best way to go. Cytonn has some pretty good looking properties that are also affordable (in Ridgeways and Ruaka). Just want to make sure it is the absolute best decision before investing with them
You have to forward thinking in real estate to make the right investment. If you look at the traffic projections for Nairobi 2030 it will not make sense to live far from CBD. Ruaka is a horribly planned settlement you won't like that neighborhood in 15-20 years. Check google maps if you doubt
And there lies the most important factor in real estate investments. As the platitude goes, real estate is about location, location, location. If i was to buy a plot in Ruaka today, i will build a Umoja-kayole-githurai-pipeline-mwiki-mathare north-roy sambu-style apartment because that what Ruaka is....an over-glorified slum. Unfortunately, that is the reality across the country.The government of kikuyus and other greedy tribes has left wanjiku(taxpayers) at the mercy of dumb greedy kikuyus (and other greedy tribes) landlords. We have wazuans here dreaming of squeezing 60 one-bedroom houses on 33 by 66 feet plots in residential flats of 6 floors. These are Houses without natural light(sunlight) which denies children of vitamin D leading to health complications such as iron-deficiency, pneumonia, tuberculosis, meningitis etc. To top it all, since all the greedy landlords(kikuyus and others) have planted their 30 by 60 apartments wall-to-wall, there are no playing fields and recreation areas for Kenyas future generation therefore, we read of stories of kids turning roy-sambu flyover and other risky places into a playing fields.Let me not even talk of how much rent these greedy ilk is raking from poor helpless and hapless wanjiku for such hujuma ya hali ya juu.
Only proper urban- planning and zoning will stop this madness and this require serious government policy. When Pope Francis visited Kangemi and saw human beings living like pigs in tin-shacks defecating on juala and hauling the contents on rooftops, he told Uhuru that Kenyan mabwenyenye greed will be our(Kenyan) undoing.Perhaps, this observation by the pope is what inspired Uhuru to build proper houses for wananchi, but as things stand, these affordable houses might never see light of day, reason being that ground breaking that was meant to be in May huko parkroad/Jericho/mbotela estate did not happen and now we are headed to July and what we see on tv is an overated PS of housing speaking kizungu mingi but hakuna kitu inaendelea...
Anyway, real estate is a good investment. But i recommend you build houses even you yourself can live in complete with thorough consideration of innocent Kenyan children, persons living with disabilities and the elderly. Hii mabo ya kujenga nyumba ya gorofa bila dirisha na ground floor ni ma wines and spirits tuwache jameni...ama namna gani jamma? Dumb money becomes dumb only when it listens to smart money
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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Fyatu wrote:wukan wrote:Superwoman910 wrote:Superprime1 wrote:What type/kind of an investment in real estate? Is it rental income-generating commercial or residential property/ies? Or are you intending to buy land and hold to sell in future? And which market segment are you interested in or focused on? BTW, buying Stanlib Fahari I-Reit is another way of investing in real estate....
I think rental (residential) is the best way to go. Cytonn has some pretty good looking properties that are also affordable (in Ridgeways and Ruaka). Just want to make sure it is the absolute best decision before investing with them
You have to forward thinking in real estate to make the right investment. If you look at the traffic projections for Nairobi 2030 it will not make sense to live far from CBD. Ruaka is a horribly planned settlement you won't like that neighborhood in 15-20 years. Check google maps if you doubt
And there lies the most important factor in real estate investments. As the platitude goes, real estate is about location, location, location. If i was to buy a plot in Ruaka today, i will build a Umoja-kayole-githurai-pipeline-mwiki-mathare north-roy sambu-style apartment because that what Ruaka is....an over-glorified slum. Unfortunately, that is the reality across the country.The government of kikuyus and other greedy tribes has left wanjiku(taxpayers) at the mercy of dumb greedy kikuyus (and other greedy tribes) landlords. We have wazuans here dreaming of squeezing 60 one-bedroom houses on 33 by 66 feet plots in residential flats of 6 floors. These are Houses without natural light(sunlight) which denies children of vitamin D leading to health complications such as iron-deficiency, pneumonia, tuberculosis, meningitis etc. To top it all, since all the greedy landlords(kikuyus and others) have planted their 30 by 60 apartments wall-to-wall, there are no playing fields and recreation areas for Kenyas future generation therefore, we read of stories of kids turning roy-sambu flyover and other risky places into a playing fields.Let me not even talk of how much rent these greedy ilk is raking from poor helpless and hapless wanjiku for such hujuma ya hali ya juu.
Only proper urban- planning and zoning will stop this madness and this require serious government policy. When Pope Francis visited Kangemi and saw human beings living like pigs in tin-shacks defecating on juala and hauling the contents on rooftops, he told Uhuru that Kenyan mabwenyenye greed will be our(Kenyan) undoing.Perhaps, this observation by the pope is what inspired Uhuru to build proper houses for wananchi, but as things stand, these affordable houses might never see light of day, reason being that ground breaking that was meant to be in May huko parkroad/Jericho/mbotela estate did not happen and now we are headed to July and what we see on tv is an overated PS of housing speaking kizungu mingi but hakuna kitu inaendelea...
Anyway, real estate is a good investment. But i recommend you build houses even you yourself can live in complete with thorough consideration of innocent Kenyan children, persons living with disabilities and the elderly. Hii mabo ya kujenga nyumba ya gorofa bila dirisha na ground floor ni ma wines and spirits tuwache jameni...ama namna gani jamma?
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: Member Joined: 9/27/2006 Posts: 506
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Not to deter the discussion so far, but how would one go about buying land along the LAPSSET corridor?
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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sparkly wrote:MugundaMan wrote:Wakanyugi wrote:
Thus speaks the armchair investor. The typical spiel is to criticse but offer no alternatives. I have lost count of the number of times I have made money by reading such so called advise on Wazua and doing the exact opposite.

Too funny and yet so true, brother!
I was one of those who started out a long time ago listening to what I thought was very convincing spiel of "armchair investors" who chided me with harsh tones and waggy fingers about the perils of investing in real estate in Kenya. But when I saw my risk-taker peers minting big time from very modest investments in far flung areas held over time, I got religion fast! No other investment in this here Kenia comes close to matching the stability, safety and consistency of real estate of any form well bought and held over the long term, whether developed or not.
Where do you get money to buy real estate? You probably work an 8 to 5 desk job for which you receive a salary at the end of the month (in arrears).- Where do people who don't invest in real estate get their money from? NYS?
You put aside some savings for 5 years, take a sacco loan to buy a 1/8 plot of land at Rongai. How many people do you employ? What your contribution to the economy? - This is very narrow thinking, contribution to teh economy doesn't need to be linked to employment.Most business in Kenyan thrive on real estate, vibandas, wines and spirits,schools,clinics,cement.
Now ask yourself, who is the genius? The person you work for 8-5 or yourself? Myself, through my real estate, I have created business opportunities for schools, butcheries, bars, prostitution etc
You sell your empty 1/8 plot in Rongai after 5 years for double the price. You are now a certified genius right? Isn't that what every biz does, buy low sell high? Even mama mboga understands this concept
But wait, what would have happened if GOK didn't upgrade that dust road, your neighbours didnt build those nearby schools, nyama choma vibandas, clinics? They wouldn't have bought the land in the first place It's government responsibility to build roads, sewage lines, provide water all over Kenya
But wait, why are you working your 8-5 job? I thought your real estate investment made you rich? Now your employer has transferred you to Rongai Branch as the Assistant Manager? Who is the genius, you or your employer? How many branches have you opened for your biz considering that you are the genius who has not invested in real estate.Is your office based in cloud, do you live in trees ama the people who built the office and house you are renting/bought were dimwits?
Lesson for the day:- Passive real estate is an investment for the lazy and unimaginative. Lesson of life: Thinking RATIONALLY is free
If Obiero did it, Who Am I?
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