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Is Taking a Mortgage the WORST Decision Ever??
Rank: Elder Joined: 7/22/2009 Posts: 7,840
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DBLyon wrote:itz wrote:MaichBlack wrote:alma1 wrote:And the bubble officially begins. Suraya have been forced to reduce the asking prices of their houses. And now they have to deal with higher financing costs!!! Ni kubaya!!! @MaichBlack which Suraya houses have lowered asking price? I'm also waiting with bated breath to hear this. Their Apartments at fourways junction - The prices were reduced ridiculously! Approximately 30%!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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I realised that mortgages in usa is 2.97% with so many government tax breaks. Well here at home the mortgage is at least 17% almost 6 times .tell me how can we encourage ownerships of homes with those exuberant rates and no government backed subsidies ???
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Rank: Elder Joined: 9/15/2006 Posts: 3,907
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enyands wrote:I realised that mortgages in usa is 2.97% with so many government tax breaks. Well here at home the mortgage is at least 17% almost 6 times .tell me how can we encourage ownerships of homes with those exuberant rates and no government backed subsidies ??? In the US, low interest rates and home prices knocked down from the housing crisis have made buying a much better deal than renting in virtually all U.S. markets.
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Rank: Member Joined: 9/14/2011 Posts: 869 Location: nairobi
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How can i get info on how various banks compare in terms of the rates they are offering for mortgages /loans?
Is that info available anywhere other than calling each bank?
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Rank: Elder Joined: 7/22/2009 Posts: 7,840
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#308 Posted : Saturday, June 28, 2014 9:56:57 AM I warned guys last year but others gave them theoretical/text book advice! Now the sh!t has hit the fan as I had warned!!! I was talking about 25% but the rates are now higher than that. You had been warned!!! ChumsQuest wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in??  This is now ridiculous!!! Ati 34m for a 3 bed...Kenyans have lost their mind. This is where the street con-men have relocated = real estate..  Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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MaichBlack wrote:#308 Posted : Saturday, June 28, 2014 9:56:57 AM I warned guys last year but others gave them theoretical/text book advice! Now the sh!t has hit the fan as I had warned!!! I was talking about 25% but the rates are now higher than that. You had been warned!!! ChumsQuest wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? This is now ridiculous!!! Ati 34m for a 3 bed...Kenyans have lost their mind. This is where the street con-men have relocated = real estate.. Accelerated payments was the answer to most questions asked 
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Rank: Elder Joined: 7/22/2009 Posts: 7,840
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whiteowl wrote:MaichBlack wrote:#308 Posted : Saturday, June 28, 2014 9:56:57 AM I warned guys last year but others gave them theoretical/text book advice! Now the sh!t has hit the fan as I had warned!!! I was talking about 25% but the rates are now higher than that. You had been warned!!! ChumsQuest wrote:MaichBlack wrote:omhangla wrote:There are these arpatments; Milimani excutive arpatments (Hazina close) build by NSSF. 34 million for 3 bedroom. is it a fair deal This is exactly what I was saying!!! 34 million for a fourth floor house. And this is NSSF which is supposed to be "cheaper" than the other sharks!!! If you were to pay for this house using a 20 year mortgage [at 16% interest], it would cost you Kshs. 473,027/= every month!!! Kshs. 473,027/= per month for the next 20 years [hoping the rates don't go up!!!] during those 20 years!!! If it hits 25% like it did a couple of years ago, your monthly payments go up to Kshs. 713,393.52/=!! For a three bedroom apartment!!! And then some fellows will tell you you can accelerate payments!!! To what??? A million a month maybe?? And what business are you in?? This is now ridiculous!!! Ati 34m for a 3 bed...Kenyans have lost their mind. This is where the street con-men have relocated = real estate.. Accelerated payments was the answer to most questions asked Sasa wa accelerate to MONTHLY payments of 1,000,000/= for a three bedroom apartment!!! Hii ndiyo ubaya ya kuleta theory kwa real life!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 8/5/2011 Posts: 125
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Ninauliza wenye mortgages... kuko vipi ndani ya sufuria. Is the heat of the interest increase enough to simmer ama its just candle-light? kiwaru wrote:MaichBlack wrote:webish wrote: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"... Some differences are just plain ridiculous!!! Cash Buyers 6.5m Mortgage Buyers 8m 1.5m for what??? Are you the one giving the mortgage. You will get your money in cash after all. A couple of months you want to make an extra 1.5m? And even by then the cash buyers will probably have not paid everything especially if they took up possession after the mortgage buyer! Don't you think the mortgage buyer is already shafted enough?? Someone explain to me like a two year old, what extra costs (other than time) does the vendor or developer incur if the buyer is buying through mortgage? The mortgage seeking process is fraught with risk for the developer: e.g. the amount approved may not be equal to the difference needed; the many bureaucratic steps that must be processed (valuation, registration of title, registration of charge - each with numerous back-and-forth between lawyers, vendor and purchaser). There are numerous potential causes of delays The time value of money cannot be gainsaid: for every 10m tied out, the developer is probably paying interest at 15% p.a. which effectively translates to Kshs 1.5m p.a., then add the premium on the delays and inconveniences of entrepreneurship. With experience, a developer learns that the delay between sale agreement and full draw-down is often >8 months; often lasting beyond a year.
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Rank: Member Joined: 3/26/2012 Posts: 830
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Bottomline. Taking a mortgage is the worst decision ever. A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: User Joined: 1/20/2014 Posts: 3,528
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Some mortgages are company backed and affortable ........... bank staff. Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Is Taking a Mortgage the WORST Decision Ever??
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