Wazua
»
Investor
»
Property
»
Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 3/29/2011 Posts: 2,242
|
mlennyma wrote:newfarer wrote:www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html i consider a NPL invested in a property secure provided the lender keeps on check the duration of default A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore. "Things that matter most must never be at the mercy of things that matter least." Goethe
|
|
|
Rank: Veteran Joined: 7/3/2007 Posts: 1,634
|
Impunity wrote:Wakanyugi wrote:There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).
This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).
If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?
I hope young Wazuans don't get taken in and forget that every story is only half a story at best.
For DECADES Bernard Madoff's PONZI was real and all the people in it thought they were not suckers...but they painfully realized they were actually hapless suckers...the only difference here is/was the time! #Happy hunting. Lesson number 1 from Strategy 101: 'Thou shalt not make important decisions on the basis of exceptions but rather on established patterns.' The Madoff incident is not a pattern but an exception, an outlier within a multi trillion dollar global industry. Even the point that some of you may have had a nasty experience with mortgages does not establish dogma that the rest of us must follow. Everyone's case is different. Again I hope young Wazua investors are digesting all this with a hefty dose of salt. "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
|
|
|
Rank: Veteran Joined: 9/18/2014 Posts: 1,127
|
Gathige wrote:mlennyma wrote:newfarer wrote:www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html i consider a NPL invested in a property secure provided the lender keeps on check the duration of default A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore. Exactly. More so, the sale and/or court process involved in realizing some of these securities is a total bog down...banks have to take the hit in their balance sheets way before such proceeds come on board. The main purpose of the stock market is to make fools of as many people as possible.
|
|
|
Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
|
Wakanyugi wrote:There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).
This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).
If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?
I hope young Wazuans don't get taken in and forget that every story is only half a story at best.
I have been following this thread for education on the differences between risk takers (most entrepreneurs are a subset) and non-risk takers. Finance at even extortionist interest rates like 24% put to good use will bring in unimaginable gains, whereas patiently working on savings forever will probably make one comfortable but never very wealthy. I know someone is going to say this on mortgage, but the principle is just the same. It all depends on how you use it.
|
|
|
Rank: Elder Joined: 6/8/2013 Posts: 2,517
|
|
|
|
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
|
|
|
|
Rank: Elder Joined: 7/23/2008 Posts: 3,017
|
lochaz-index wrote:Gathige wrote:mlennyma wrote:newfarer wrote:www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html i consider a NPL invested in a property secure provided the lender keeps on check the duration of default A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore. Exactly. More so, the sale and/or court process involved in realizing some of these securities is a total bog down...banks have to take the hit in their balance sheets way before such proceeds come on board. If you follow best accounting practices and the prudential guidelines diligently, you will never get a surprise hit on your balancesheet. It is the greedy CEO's/CFO's and moron directors who cut corners and are shocked when reality strikes. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
|
|
|
Rank: Chief Joined: 5/9/2007 Posts: 13,095
|
|
|
|
Rank: User Joined: 1/20/2014 Posts: 3,528
|
Wapi 'others'  Kwani mortgage is only in Nairobi. very daft thinking for an investment firm ..... come see how Nakuru is expanding. Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
|
|
|
Rank: Member Joined: 5/28/2014 Posts: 149 Location: Nairobi
|
iris wrote:Wakanyugi wrote:There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).
This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).
If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?
I hope young Wazuans don't get taken in and forget that every story is only half a story at best.
I have been following this thread for education on the differences between risk takers (most entrepreneurs are a subset) and non-risk takers. Finance at even extortionist interest rates like 24% put to good use will bring in unimaginable gains, whereas patiently working on savings forever will probably make one comfortable but never very wealthy. I know someone is going to say this on mortgage, but the principle is just the same. It all depends on how you use it. Hear hear. When you live for others' opinions, you are dead.
- Carlos Slim Helu
|
|
|
Rank: Member Joined: 5/28/2014 Posts: 149 Location: Nairobi
|
What is the true value of a property? Or a stock? Or anything, really? I would ask him that. When you live for others' opinions, you are dead.
- Carlos Slim Helu
|
|
|
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
|
DBLyon wrote:What is the true value of a property? Or a stock? Or anything, really? I would ask him that. valueless If Obiero did it, Who Am I?
|
|
|
Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
|
Swenani wrote:DBLyon wrote:What is the true value of a property? Or a stock? Or anything, really? I would ask him that. valueless Now what do you mean Swenani? Maybe you should wait until oxygen gets back to your head before posting
|
|
|
Rank: Veteran Joined: 11/9/2009 Posts: 2,003
|
DBLyon wrote:What is the true value of a property? Or a stock? Or anything, really? I would ask him that. I learnt, from one @mukiha (where did he disappear to) that the value of a commodity is the value the customer is willing to pay. It has no relation to the cost of production.
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,455
|
radio wrote:DBLyon wrote:What is the true value of a property? Or a stock? Or anything, really? I would ask him that. I learnt, from one @mukiha (where did he disappear to) that the value of a commodity is the value the customer is willing to pay. It has no relation to the cost of production. That is not value but price/cost. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
|
iris wrote:Swenani wrote:DBLyon wrote:What is the true value of a property? Or a stock? Or anything, really? I would ask him that. valueless Now what do you mean Swenani? Maybe you should wait until oxygen gets back to your head before posting I mean exactly what I say... valueless...Otherwise we wouldnt be having the bear and bull markets,property bubbles etc If Obiero did it, Who Am I?
|
|
|
Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
|
Swenani wrote:iris wrote:Swenani wrote:DBLyon wrote:What is the true value of a property? Or a stock? Or anything, really? I would ask him that. valueless Now what do you mean Swenani? Maybe you should wait until oxygen gets back to your head before posting I mean exactly what I say... valueless...Otherwise we wouldnt be having the bear and bull markets,property bubbles etc Valueless: "having no value; worthless". To my understanding that is not true of property in our context here. You are talking about an absence of value (zero) but the others (@radio, @DBLyon) are saying it is a variable not a constant, depending on what the buyer agrees to. So if you "exactly" mean zero, I respectively disagree. I think if property was valueless, then that is when we would have no bears and bulls.
|
|
|
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
|
iris wrote:Swenani wrote:DBLyon wrote:What is the true value of a property? Or a stock? Or anything, really? I would ask him that. valueless Now what do you mean Swenani? Maybe you should wait until oxygen gets back to your head before posting Eish.  Pesa Nane plans to be shilingi when he grows up.
|
|
|
Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
|
According to the following "Experts", the bubble is here; - Knight Franks - Hass Consult (WAH!!!) - Cytonn - Central Bank "the real estate sector recorded the highest increase in non-performing loans, by Sh5.9 billion or 42.3 per cent, according to a report by the Central Bank of Kenya" "Prime rents for Nairobi fell 7.9 per cent in quarter one of 2016, according to the report, which pointed out that for the past four years, rents in Kenya’s capital have been declining." "Land prices in Mlolongo and Athi River have fallen by 10 per cent and four per cent, respectively, signalling a decline in demand for housing." Receive with simplicity everything that happens to you.” ― Rashi
|
|
|
Rank: Member Joined: 1/24/2011 Posts: 407 Location: Nairobi,Kenya
|
dunkang wrote:According to the following "Experts", the bubble is here;
- Knight Franks
- Hass Consult (WAH!!!)
- Cytonn
- Central Bank
"the real estate sector recorded the highest increase in non-performing loans, by Sh5.9 billion or 42.3 per cent, according to a report by the Central Bank of Kenya"
"Prime rents for Nairobi fell 7.9 per cent in quarter one of 2016, according to the report, which pointed out that for the past four years, rents in Kenya’s capital have been declining."
"Land prices in Mlolongo and Athi River have fallen by 10 per cent and four per cent, respectively, signalling a decline in demand for housing." Let them keep dreaming... Hope is not a strategy
|
|
|
Wazua
»
Investor
»
Property
»
Is Taking a Mortgage the WORST Decision Ever??
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|