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Is Taking a Mortgage the WORST Decision Ever??
Rank: Hello Joined: 12/18/2014 Posts: 5
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lidarmama wrote:Asking for a friend  . I am renting and would like to own a home. I have been saving for that and I'm currently at approx 2m. I have a vacant plot(1/4) in a gated community in Kitengela. Should I take the cash and start building, buy a plot in a more desirable place (most likely 1/8, and I'd have to add cash), put down a down payment for a ready built house (approx. 8m total) and sell Kitengela to pay down the mortgage, or put the cash in bonds/shares and continue chilling?
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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You starts with a appraised project development plan then project financing budget. Ie where you intend to live and how to live is your choice but choices have consequences like how much you put into it in terms of financing, planning and sacrifices etc. Do you have an idea how much your desired home would cost? Ie do I have enough cash or is financing your project feasible? Whether bought or constructed or whichever way planning is key. ,Behold, a sower went forth to sow;....
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Rank: Member Joined: 8/5/2011 Posts: 125
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lidarmama wrote:Asking for a friend . I am renting and would like to own a home. I have been saving for that and I'm currently at approx 2m. I have a vacant plot(1/4) in a gated community in Kitengela. Should I take the cash and start building, buy a plot in a more desirable place (most likely 1/8, and I'd have to add cash), put down a down payment for a ready built house (approx. 8m total) and sell Kitengela to pay down the mortgage, or put the cash in bonds/shares and continue chilling? You have too many options. What do you want? In order of priority, I would first prioritize the questions below A) To live where... then To own a house or not... OR B) To own a house or not then ... to live where This would mean that you know what you want: live in 'leafy suburbs' and enjoy the convenience and prestige OR just stop paying rent or both. Then cost the decision based on the compromise you are willing to make, as you match this to available resources
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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wazuans are too political, fence sitting always wants to be on the safe side.
give @lidarmama friend advice.
My advice take the 2m get a fundi and put up a 3 bedroom bungalow basic finishes, take the family and get in, tell your friend everyday that passes they get old.
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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A decent family house anywhere in Kenya today won't cost u 2m otherwise otherwise ARM/EAPC/BAMB would be out of buzina. Stats wise, how many homesteads are coming up to solve housing hiccups in nai? Or say EA. F**k shiny, in HAL pple r getting shafted in day light when saidia karori is having it all tha way to tha bank. Otherwise, spread ur juicy lips and wait to feel the shift. That's awful bro. Na si Latin dio to do. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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sitaki.kujulikana wrote:wazuans are too political, fence sitting always wants to be on the safe side.
give @lidarmama friend advice.
My advice take the 2m get a fundi and put up a 3 bedroom bungalow basic finishes, take the family and get in, tell your friend everyday that passes they get old. Exactly. 500k for foundation, 400k for walling, 500k for roofing. He can use the balance of 600k to do some finishing and move in. If he is currently paying 30k rent that amount can buy him 40 bags of cement, lots of paint or 2 lorries of mawe to finish compound pole pole. Also many people mistakenly believe that the first house you build or buy is the one you will live for the rest of your life. That is why they would want to buy their first house in runda, kileleshwa etc and since that is quite costly many lose hope of ever owning a house. The first house gets you on the property ladder and you can upgrade your neighbourhood (by saving and selling the house) as your income increases. Just like people upgrade their cars. Ultimately youll find yourself in runda.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Service charge is normally maximum 10% of the rent Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Ericsson wrote:Service charge is normally maximum 10% of the rent Therefore @waigooroo is paying 80k service charge coz rent at Kihingo is 800k pm.
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Rank: Elder Joined: 12/17/2009 Posts: 3,583 Location: Kenya
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hardwood wrote:sitaki.kujulikana wrote:wazuans are too political, fence sitting always wants to be on the safe side.
give @lidarmama friend advice.
My advice take the 2m get a fundi and put up a 3 bedroom bungalow basic finishes, take the family and get in, tell your friend everyday that passes they get old. Exactly. 500k for foundation, 400k for walling, 500k for roofing. He can use the balance of 600k to do some finishing and move in. If he is currently paying 30k rent that amount can buy him 40 bags of cement, lots of paint or 2 lorries of mawe to finish compound pole pole. Also many people mistakenly believe that the first house you build or buy is the one you will live for the rest of your life. That is why they would want to buy their first house in runda, kileleshwa etc and since that is quite costly many lose hope of ever owning a house. The first house gets you on the property ladder and you can upgrade your neighbourhood (by saving and selling the house) as your income increases. Just like people upgrade their cars. Ultimately youll find yourself in runda. True if he really wants a place of his own with a plot and 2m he should be sorted.
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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nakujua wrote:hardwood wrote:sitaki.kujulikana wrote:wazuans are too political, fence sitting always wants to be on the safe side.
give @lidarmama friend advice.
My advice take the 2m get a fundi and put up a 3 bedroom bungalow basic finishes, take the family and get in, tell your friend everyday that passes they get old. Exactly. 500k for foundation, 400k for walling, 500k for roofing. He can use the balance of 600k to do some finishing and move in. If he is currently paying 30k rent that amount can buy him 40 bags of cement, lots of paint or 2 lorries of mawe to finish compound pole pole. Also many people mistakenly believe that the first house you build or buy is the one you will live for the rest of your life. That is why they would want to buy their first house in runda, kileleshwa etc and since that is quite costly many lose hope of ever owning a house. The first house gets you on the property ladder and you can upgrade your neighbourhood (by saving and selling the house) as your income increases. Just like people upgrade their cars. Ultimately youll find yourself in runda. True if he really wants a place of his own with a plot and 2m he should be sorted. I don't know what he's waiting for if he has a plot in a gated community in the surburbs, and some 2m cash. Right now he should be digging trenches for the foundation with an aim of moving into the house in April next yr. A 100 sqm house would cost him 2m @20k per sqm.
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Is Taking a Mortgage the WORST Decision Ever??
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