Wazua
»
Investor
»
Property
»
Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 8/16/2011 Posts: 2,387
|
It has proved to be the worst. Funny to hear that 60 to 80 % do not seek funds from Banks.
Kenyans destate those unforeseen rules and costs (Insurance for loan, collateral, fees and commisions, high interest to repay,penalties etc)
Now lets see, barclays has declared it will fund upcountry projects!!!
|
|
|
Rank: Member Joined: 8/5/2011 Posts: 125
|
Realtreaty wrote:It has proved to be the worst. Funny to hear that 60 to 80 % do not seek funds from Banks.
Kenyans destate those unforeseen rules and costs (Insurance for loan, collateral, fees and commisions, high interest to repay,penalties etc)
Now lets see, barclays has declared it will fund upcountry projects!!!
I agree. The terms and conditions are quite the bother, and not so predictable, even nonsensical. Valuation fees, arrangement fees, legal fees, insurance: all applied separately on top of the interest payments and often deducted separately. This happens after you have signed the sale agreement with penalty clauses if you should think of withdrawing. For my next project, am considering NOT taking bank financing. Budget is 20M, constrution of multiple units (estimated RoR of 25% gross, on un-encumbered land, so am wondering what my options are...
|
|
|
Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
|
MaichBlack wrote:Gordon Gekko wrote:Toxicity wrote:Talking of mortgages wifey works in a bank and there is talk of her taking the mortgage as I help finance 6% rate..I am of opinion she takes a normal loan and buy land plus my savings and construct..Opinions? Are you ready to live in wifey's house? The married among us know the import of this question. No man should live in his wife's house if he has an option!!! This might sound sexist but the truth is not always pretty! No need to sugar coat. Normal statements like "Why are you getting into MY HOUSE with dusty shoes?" will take a totally new meaning when the house is actually hers. Some wives always ask such kind of questions even when YOU own the house or pay the rent and as a result you don't dissect the question. But when the house is hers the weight of such questions would go through the roof! Even if she didn't mean much by the statement. And then there are those who will want to run the show now that they own the house. I was having a conversation who was explaining how they built their house and she was structuring the sentences to leave no doubt that she is the one who bought the plot, took a loan to build and is the one who services the loan! All those details were not adding any value to the conversation but she had to put them in there! I felt sorry for the hubby! Ni kama kutolewa nguo kwa soko!!! Another fellow built a dream house on his wife's plot. Believe it or not, the fellow was recently thrown out. A man with fully grown children thrown out of his house just because the name on the plot's title deed is his wife's. The wife has proof of ownership of the plot. The husband has no proof he is the one who financed the building of the house 100%!!! And given that they build the house long time ago, the cost of the plot must have been negligible compared to the cost of construction. The hubby could have easily bought another plot in the same neighbourhood and put up a house in his OWN plot. Love blinds people. It is romantic to be in a relationship 110% without any boundaries whatsover but when the sh!t hits the fan, you will be in deep trouble. Look at Moi's son, look at Gichuru (Formerly of Kenya Power), Muthama, Alfie Mutua etc. etc. The problem is the hat we the ha think this crap can only happen to OTHER people. Jipange!!! Man this is real .The more I read tthis the more I see hhow I need to be smart . When Iin love we do stuff pertaining to love and forget the rreality outside the door. I think II'm getting wiser .
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,843
|
A First Time Home Owner's JourneyNever count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,843
|
kiwaru wrote:Realtreaty wrote:It has proved to be the worst. Funny to hear that 60 to 80 % do not seek funds from Banks.
Kenyans destate those unforeseen rules and costs (Insurance for loan, collateral, fees and commisions, high interest to repay,penalties etc)
Now lets see, barclays has declared it will fund upcountry projects!!!
I agree. The terms and conditions are quite the bother, and not so predictable, even nonsensical. Valuation fees, arrangement fees, legal fees, insurance: all applied separately on top of the interest payments and often deducted separately. This happens after you have signed the sale agreement with penalty clauses if you should think of withdrawing. For my next project, am considering NOT taking bank financing. Budget is 20M, constrution of multiple units (estimated RoR of 25% gross, on un-encumbered land, so am wondering what my options are... @Kiwaru - For a 20m budget, how many units are you planning to put up? How many bedrooms? Flat? For information purposes. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: New-farer Joined: 2/6/2015 Posts: 12
|
kiwaru wrote:Realtreaty wrote:It has proved to be the worst. Funny to hear that 60 to 80 % do not seek funds from Banks.
Kenyans destate those unforeseen rules and costs (Insurance for loan, collateral, fees and commisions, high interest to repay,penalties etc)
Now lets see, barclays has declared it will fund upcountry projects!!!
I agree. The terms and conditions are quite the bother, and not so predictable, even nonsensical. Valuation fees, arrangement fees, legal fees, insurance: all applied separately on top of the interest payments and often deducted separately. This happens after you have signed the sale agreement with penalty clauses if you should think of withdrawing. For my next project, am considering NOT taking bank financing. Budget is 20M, constrution of multiple units (estimated RoR of 25% gross, on un-encumbered land, so am wondering what my options are... @kiwaru, would you mind sharing your estimated construction cost/m2, the number of units and the size of each unit?
|
|
|
Rank: Member Joined: 8/5/2011 Posts: 125
|
MaichBlack wrote:kiwaru wrote:Realtreaty wrote:It has proved to be the worst. Funny to hear that 60 to 80 % do not seek funds from Banks.
Kenyans destate those unforeseen rules and costs (Insurance for loan, collateral, fees and commisions, high interest to repay,penalties etc)
Now lets see, barclays has declared it will fund upcountry projects!!!
I agree. The terms and conditions are quite the bother, and not so predictable, even nonsensical. Valuation fees, arrangement fees, legal fees, insurance: all applied separately on top of the interest payments and often deducted separately. This happens after you have signed the sale agreement with penalty clauses if you should think of withdrawing. For my next project, am considering NOT taking bank financing. Budget is 20M, constrution of multiple units (estimated RoR of 25% gross, on un-encumbered land, so am wondering what my options are... @Kiwaru - For a 20m budget, how many units are you planning to put up? How many bedrooms? Flat? For information purposes. @MaichBlak, @Jodaco I intend to do 16 two-br units on 24 by 14 sqm piece. First to fourth floor with ground fl as parking. Plinth area is about 320m, with each unit at 80 sqm (been considering 3 br but will do moderate quality/space - mahali hata mimi naweza ishi) Working with cost per sqm of Kshs 20,000 instead of Kshs 25,000 because transport will be mine (another arrangement gives me access to tipper truck). Total comes to about 25 m. 5 mill i have figured where its coming from (by year end). Squeezed 2 br units in the area go for 25k, so thats my baseline for rent pricing. Demand iko, tena na back-log, watu wana-book when plastering - have a friend with a recent experience ambapo "analazimishwa" kuchukua deposit
|
|
|
Rank: Member Joined: 8/5/2011 Posts: 125
|
kiwaru wrote:Realtreaty wrote:It has proved to be the worst. Funny to hear that 60 to 80 % do not seek funds from Banks.
Kenyans destate those unforeseen rules and costs (Insurance for loan, collateral, fees and commisions, high interest to repay,penalties etc)
Now lets see, barclays has declared it will fund upcountry projects!!!
I agree. The terms and conditions are quite the bother, and not so predictable, even nonsensical. Valuation fees, arrangement fees, legal fees, insurance: all applied separately on top of the interest payments and often deducted separately. This happens after you have signed the sale agreement with penalty clauses if you should think of withdrawing. For my next project, am considering NOT taking bank financing. Budget is 20M, constrution of multiple units (estimated RoR of 25% gross, on un-encumbered land, so am wondering what my options are... Typical scenario: Take a mortgage for 13 milli, raise 3m and ask the bank for 10 milli, utalipishwa 1. Valuation - 30,000 (there's some scale applied) 2. Vendor's lawyer - 175,000 (for registration etc) 3. Your own lawyer - 50,000 - 100,000 (kulingana na how friendly s/he is) 4. Bank's lawyers - 150,000 (to register charge etc) 5. Arrangement fee ya bank - 110,000 Total = minimum Kshs 510,000 Na hiyo ni kabla ya stamp duty na zingine sikumbuki another 4.4% inakuja 450,000. Na insurance (to cover the bank, not you - 65,000 charged per annum ) Ni hujuma, ni hujuma, ni hujuma ....   !!!
|
|
|
Rank: Member Joined: 5/6/2008 Posts: 199
|
WHy do developers charge mortgage buyers more compared to cash buyers? This on top of the onerous fees one has to part with in arranging a mortgage. I would have expected cash buyers to pay more since they have the option of spreading their purchase price over several installments.
|
|
|
Rank: Member Joined: 10/19/2009 Posts: 671 Location: Nairobi
|
tandich wrote:WHy do developers charge mortgage buyers more compared to cash buyers? This on top of the onerous fees one has to part with in arranging a mortgage. I would have expected cash buyers to pay more since they have the option of spreading their purchase price over several installments. NEVER EVER. It's always been about Time value...for that money. As a developer, the best situation would be that, everyone buys cash. Mortgage process takes time, and costs.. That said...on some projects, the difference can be so big, that it becomes a way of saying "CASH BUYERS ONLY"...
Life is joy, death is peace, but the transition is very difficult.
|
|
|
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.
|