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Is Taking a Mortgage the WORST Decision Ever??
Rank: Member Joined: 1/22/2015 Posts: 682
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People claim that a house will give you stability, but from my experience, the one thing that brings true stability is owning an income generating asset, aka a kabiashara. Young people should aim for this first and foremost, then with the resulting profits, deploy in whatever house you can afford, with cash or mortgage, whatever. Otherwise having a large liability such as a house hanging over your head with only a salary is a recipe for high blood pressure.
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Rank: Veteran Joined: 4/27/2010 Posts: 951 Location: Nyumbani
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hardwood wrote: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. I hope it was her house, how can one pay 800k for rent? better buy the house. How much is one supposed to earn so as to pay such rent ? above 1.5m coz you cannot drive a useless car living in such a neighbourhood. Ngai fafa kweli watu wana pesa.Za kuiba coz i do not see how one can spend such a sum from your sweat.
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Mike Ock wrote:People claim that a house will give you stability, but from my experience, the one thing that brings true stability is owning an income generating asset, aka a kabiashara. Young people should aim for this first and foremost, then with the resulting profits, deploy in whatever house you can afford, with cash or mortgage, whatever. Otherwise having a large liability such as a house hanging over your head with only a salary is a recipe for high blood pressure.  thank you . Umenena
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Housing is a basic need and he will always need one whether he rents or builds. He can continue renting one, whereby assuming he's currently paying 40k rent for a 2 or 3 bdrm, he'll have paid 2m in rent in 4yrs, and own zero house. He can choose to start building with the 2m he has now and move in and save on rent which he can be saving and investing elsewhere. NB. 2m can do the ground floor of a maisonette and he moves in. The ground floor will have a living rm, kitchen, bedroom (guest), dining rm (can be used a temporary bedroom 2). Also people should stop hating on kitengela. Those who have been to chuna, milimani areas etc of kitengela know that some of the houses there rival those in runda. Eg http://www.olx.co.ke/ad/...IDT2Y5u.html#1c37444dc5
 or http://www.olx.co.ke/ad/...IDUS64q.html#5387f2241d
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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hardwood wrote:Housing is a basic need and he will always need one whether he rents or builds. He can continue renting one, whereby assuming he's currently paying 40k rent for a 2 or 3 bdrm, he'll have paid 2m in rent in 4yrs, and own zero house. He can choose to start building with the 2m he has now and move in and save on rent which he can be saving and investing elsewhere. NB. 2m can do the ground floor of a maisonette and he moves in. The ground floor will have a living rm, kitchen, bedroom (guest), dining rm (can be used a temporary bedroom 2). Also people should stop hating on kitengela. Those who have been to chuna, milimani areas etc of kitengela know that some of the houses there rival those in runda. Eg http://www.olx.co.ke/ad/...IDT2Y5u.html#1c37444dc5
or http://www.olx.co.ke/ad/...IDUS64q.html#5387f2241d
I have a running court case since 2009.. Nikiskia Kitengela ndio BP inapanda
KQ ABP 4.26
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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Mike Ock wrote:People claim that a house will give you stability, but from my experience, the one thing that brings true stability is owning an income generating asset, aka a kabiashara. Young people should aim for this first and foremost, then with the resulting profits, deploy in whatever house you can afford, with cash or mortgage, whatever. Otherwise having a large liability such as a house hanging over your head with only a salary is a recipe for high blood pressure. To most people a salary / a job is the profit/money generating asset from their investments in education and other skill sets.
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Rank: Member Joined: 6/9/2009 Posts: 85
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hardwood wrote: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. Back in 2010 the service charge was 27k which was about 5% of the 520k rent then. Link"The cost of the three types of houses — the five-bedroom, the four-bedroom large and four-bedroom small, all en-suites — ranges between Sh120 million to Sh72 million. A monthly service fee of Sh27,000 is charged.
"To rent a house here will cost you between US$4,500-6,000 (Sh520,000) a month depending on the size of the house," reveals an official residing here," said the management at Kihingo Holdings. All the 55 houses built in the first phase will be ready for occupation in the next few months."
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Rank: New-farer Joined: 4/8/2015 Posts: 42
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hardwood wrote:Housing is a basic need and he will always need one whether he rents or builds. He can continue renting one, whereby assuming he's currently paying 40k rent for a 2 or 3 bdrm, he'll have paid 2m in rent in 4yrs, and own zero house. He can choose to start building with the 2m he has now and move in and save on rent which he can be saving and investing elsewhere. NB. 2m can do the ground floor of a maisonette and he moves in. The ground floor will have a living rm, kitchen, bedroom (guest), dining rm (can be used a temporary bedroom 2). Also people should stop hating on kitengela. Those who have been to chuna, milimani areas etc of kitengela know that some of the houses there rival those in runda. Eg http://www.olx.co.ke/ad/...IDT2Y5u.html#1c37444dc5
or http://www.olx.co.ke/ad/...IDUS64q.html#5387f2241d
Listen to this Kenyan claim houses in Kite rival those in Runda. Surely you must know that the value of a house consists mostly of the environment first (location, location, location: 1st three rules o real estate). Or maybe I should let you wallow in your own slice of imagined heaven. It's a personal thing, I suppose
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Rank: New-farer Joined: 2/14/2015 Posts: 98 Location: Kenya
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popat wrote:I speak out of experience.I did a flat along Thika road sometimes before the highway was done.Thats was sometimes back in 2009.It was my first project and I was really excited.I use to get offers of land along the highway and the Eastern bypass,that I could readily afford with the money's I was using constructing.Fast forward 2013.The house was done guaranting me passive 250k p.m.but I can assure today I wish I bought land with all the 15m I used.id be worth more than 400m going by the value of the land I dissed those days. I would be doing same house from sales proceeds and believe you me I'd be having four or more flats of what I have now.Any young man shud invest in premium lands and not rush into building.My two cents With kids grown up and out of house, I am considering selling my maisonette in a quarter (1/4) acre piece of land that can fetch 15 million and sell some plots to construct a flat/apartment complex in a good neighbourhood that can give me a passive income of at least 300K/month. I am happy living in the Penthouse. This income would give me financial freedom and liberate me from 8-5 job, thereby enjoy life more abundantly - maybe just travel, enjoy hobbies etc. Your thoughts - is this a wise idea or bad idea? Any downsides?
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Xymalos wrote:popat wrote:I speak out of experience.I did a flat along Thika road sometimes before the highway was done.Thats was sometimes back in 2009.It was my first project and I was really excited.I use to get offers of land along the highway and the Eastern bypass,that I could readily afford with the money's I was using constructing.Fast forward 2013.The house was done guaranting me passive 250k p.m.but I can assure today I wish I bought land with all the 15m I used.id be worth more than 400m going by the value of the land I dissed those days. I would be doing same house from sales proceeds and believe you me I'd be having four or more flats of what I have now.Any young man shud invest in premium lands and not rush into building.My two cents With kids grown up and out of house, I am considering selling my maisonette in a quarter (1/4) acre piece of land that can fetch 15 million and sell some plots to construct a flat/apartment complex in a good neighbourhood that can give me a passive income of at least 300K/month. I am happy living in the Penthouse. This income would give me financial freedom and liberate me from 8-5 job, thereby enjoy life more abundantly - maybe just travel, enjoy hobbies etc. Your thoughts - is this a wise idea or bad idea? Any downsides? Who wouldn't want to be financially free . There is no downside in this .instead of working for someone you can spend your time perusing what you love doing best . I would do the same with a heart beat. Be philanthropist and enjoy retirement early . All the best
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Is Taking a Mortgage the WORST Decision Ever??
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