PeterReborn wrote:MaichBlack wrote:murchr wrote:MaichBlack wrote:murchr wrote:Boris Boyka wrote:murchr wrote:Kwani Mortgages are not on a fixed rate? And why the hell are you taking a 30M loan? That building better be giving you back 1M monthly
NO, NEVER! fixed rate is used on Short term asset loans like machinery and commercial cars.
Unless you are in these group of Kenyans you need not a 30M loan
@murchr - See the post above!!! 30 million, 3 million or 300k, the story is the same! Monthly payments up 54% pap!!!
If the cost of leverage is passed to Mr Landlord, then he's about to pass the same to the one renting.
Will never happen - The tenants will move! Most landlords are NOT servicing mortgages so they are not affected!
There are only about 20,000 mortgage accounts in Kenya - and those cover owner occupier, office buildings, rentals etc. What that means is that as a landlord with a mortgage, you might be the only one with a mortgage in that neighbourhood!!! If you increase the rent, you will do it alone. Next thing you know, you will have Zero tenants!!!
The demand for rental houses in Nairobi outweighs by far the supply and therefore the houses will still find tenants even with the increased rental fee.
I think your analysis is clouded in denial.
Come over I'll show you some houses for 40k that have yet to get tenants.
Please understand the current dynamics. People can live far from Nairobi and still be happy.
Some of the costs in rental units are bizarre to say the least. 50k + in south c to live in a house with no water. While hapo athi river 35k. I know many who have moved leaving the spaces to walalos and wannabies.
As for commercial property. Has anyone taken a walk into Westlands lately? Every corner is a new commercial property. Rents 100 bob per square foot. How many of these new properties coming up in Westlands are fully let? None!
Even if its drug money, hiyo pia huisha.
Watch commercial properties keenly in that area. With financing going up by 50% what do you think the rents shall be? Who shall rent them when they can work from home.
This phenomenon is not new in Kenya. It has happened wordlwide. If you love property that much, don't do it with a loan. Utalia. Na wameanza kulia.
As for over priced tuburotis. Home Afrika is not a fluke. I know for a fact that these buroti companies are selling less than last year. That is why Kageni is shouting every day about land ending sijui next year. Their marketing departments are in agony trying everything to sell them. Now they are on shosho mendia.
Don't listen to hass consult. Just ask yourself if you are happy buying a 1/8th buroti for 5million. If you are, the bubble has yet to burst.
Thieves are not good people. Tumeelewana?