wazua Sat, Mar 21, 2026
Welcome Guest Search | Active Topics | Log In

8 Pages«<45678>
is it worth investing on rental flats?
Options
Previous Topic · Next Topic
For Sport
#51 Posted : Wednesday, August 24, 2011 9:49:52 PM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
Cde Monomotapa wrote:
african coloner wrote:
Cde Monomotapa wrote:
[quote=For Sport][quote=african coloner]i thouht you dont pay any tax on rental flats?


whaaaat?[/quot


how many people with rental flats pay tax?

Good question smile


And when the tax man comes calling for back taxes?
Back to top
  |
Lolest!
#52 Posted : Wednesday, August 24, 2011 10:17:55 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
Most people dont pay tax on rental income but it is liable to taxation. This is one of the many places where kra loses lots of revenue...btw, are capital gains on shares taxable?
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
Back to top
  |
For Sport
#53 Posted : Wednesday, August 24, 2011 10:21:28 PM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
Lolest! wrote:
Most people dont pay tax on rental income but it is liable to taxation. This is one of the many places where kra loses lots of revenue...btw, are capital gains on shares taxable?


No capital gains tax.
Back to top
  |
Ndaragwa
#54 Posted : Thursday, August 25, 2011 4:36:38 AM
Rank: Member

Joined: 3/12/2011
Posts: 108
This article, entitled "How to maximise rental income on an eighth-acre piece of land" seems relevant to this discussion. Here is the link.

http://www.nairobistar.c...ghth-acre-piece-of-land

Back to top
  |
Rahatupu
#55 Posted : Thursday, August 25, 2011 11:15:40 AM
Rank: Veteran

Joined: 12/4/2009
Posts: 1,982
Location: matano manne
bwenyenye wrote:
Pablo wrote:
This is an argument that has been there since time in memorial.

Its all about your risk appetite.

Also without being too contraversial I can bet my A** that all those saying real estate is not worth it are likely to be below 35 or so and can only dream of Kshs. 10M. Those who have access to that type of cash am sure would jump to such an opportunity as GG has pointed out.


So u choose.


Seconded!


I second you too. As you get seasoned in investing in equities, small businesses, etc you mature into it and need no lecture on which out performs the others. Real estate IMHO returns less in the short term lakini long term is the trick. Look at how Kirima made his billions.
Back to top
  |
XSK
#56 Posted : Thursday, August 25, 2011 11:51:23 AM
Rank: Veteran

Joined: 12/8/2009
Posts: 975
Location: Nairobi
Rahatupu wrote:
bwenyenye wrote:
Pablo wrote:
This is an argument that has been there since time in memorial.

Its all about your risk appetite.

Also without being too contraversial I can bet my A** that all those saying real estate is not worth it are likely to be below 35 or so and can only dream of Kshs. 10M. Those who have access to that type of cash am sure would jump to such an opportunity as GG has pointed out.


So u choose.


Seconded!


I second you too. As you get seasoned in investing in equities, small businesses, etc you mature into it and need no lecture on which out performs the others. Real estate IMHO returns less in the short term lakini long term is the trick. Look at how Kirima made his billions.


I support this thinking also. Mark you for the stocks you also need to put alot of effort in research in order to find out what to buy or sell or hold.
You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
Back to top
  |
Pablo
#57 Posted : Thursday, August 25, 2011 12:00:13 PM
Rank: Member

Joined: 3/17/2008
Posts: 567
Location: Nairobi
@Rahatupu
I think its referred to as consolidating.

As one pulls deals and hassles and climbs up the corporate ladder they need to keep consolidating what they have earned every soo often say 5 or 10 years. What better way to consolidate than invest in risk free, hassle free perpetual income that increases with inflation.

The return percentage will never be the same as the deals u can pull with the same capital.
Back to top
  |
action!
#58 Posted : Thursday, August 25, 2011 1:02:40 PM
Rank: Member

Joined: 9/17/2009
Posts: 47
The matter at hand, 10M investment with 100k return per month. Removing cost of running the investment, it will take say 10 years to pay back you initial capital. At that point (10yrs later) your 10M property is worth at least 18M. And with those cash flows, the banks will be willing to give you more money to build another after a few years. A good investment it is.
Back to top
  |
Genghis Khan
#59 Posted : Thursday, August 25, 2011 4:06:46 PM
Rank: Member

Joined: 8/5/2010
Posts: 335
Location: Nairobi
Cde Monomotapa wrote:
african coloner wrote:
Cde Monomotapa wrote:
[quote=For Sport][quote=african coloner]i thouht you dont pay any tax on rental flats?


whaaaat?[/quot


how many people with rental flats pay tax?

Good question smile

You may not see the need to pay taxes now but one day... back taxes will get you good
Nicolas Cage; Al Capone etc
"I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
Back to top
  |
Genghis Khan
#60 Posted : Thursday, August 25, 2011 4:13:06 PM
Rank: Member

Joined: 8/5/2010
Posts: 335
Location: Nairobi
Cde Monomotapa wrote:
So much effort & extra professional costs.

timesonline.co.uk wrote:
http://www.timesonline.c.../tax/article1996735.ece
Buffett blasts system that lets him pay less tax than secretary
Mr Buffett said that he was taxed at 17.7 per cent on the $46 million he made last year, without trying to avoid paying higher taxes, while his secretary, who earned $60,000, was taxed at 30 per cent.

Your friend Warren doesn't make much of an effort either... if I were him I'd have tried to pay 7.7% or less!smile

I'm sure it will make more sense when I make more money... good practice though... and the system is on my side!
"I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
Back to top
  | | Edit by user: Thursday, August 25, 2011 4:17 PM | Reason: Not specified
8 Pages«<45678>
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.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.