Rank: Elder Joined: 7/22/2009 Posts: 7,841
|
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. Continue humouring yourself. And while at it, take a drive and see the number of empty units around!!! The demand is not matched by spending power. It is more of a "want" than a demand! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|