By current rates, to make 300k pm from rental you need to spend upwards of 30m. Unless you are versed with nitty gritties of construction A-Z and king of cost saving like the proverbial Pablo. My 2 cents.

Ok xyma, all the best. When done with project you could buy some land in outskirts and do some farming, just to keep you busy.

@obiero...what happened in Kitengela? multiple ownership and fake title deeds??

Even the government does;nt borrow at those rates and the yields from T-bills and bonds is way above that; so why would banks give you a mortagage at 3% when they can buy t-bills and bonds at 10%+?

They should have asked government to use the monetary policies to manage interest rates

I will begin by saying that this is one of the super threads on this forum even surpassing the KQ thread.

I can reliably claim that the dreaded property burst is here with us. I can say that reliably because I have personally gone through a property burst and the data coming in is evident and the gimmicks now being applied by land selling companies.

According to a story I read recently there shall be 25 more high rise properties coming up in Nairobi in the next 5 years. However, the current high rises in Westlands, Upper Hill, City Centre remain unoccupied. If you don't believe me, step out of your car and walk. Don't read Cynton or Hass Consult reports, just take a walk.

The financing of properties in Kenya is just ridiculous to say the truth. It is easier to buy a kashamba in Florida and Kent UK than it is to buy a kabroti in Maili Sita.

That's why you should not be awed by someone who has an apartment in Lowell Ma, the fellow is only paying about 70k a month for a his mortgage. In Kenya, that is not rent in South C. Tafakari hayo.

Of course someone shall say that Kenya is not USA. I'll tell him that property is property.

If there is poor financing in property, then prices shall and must take a tumble. That is economics 101 and not patritism.

But it is time this happened. Too much land in Kenya is bought through illegal means. Fake titles, fake acquisitions, fake money enve the owners are called private developers.

Why do I say that it is happening now?

As I said, take a walk around. See how many tubrotis are up for grabs. Of course the developers cannot reduce the pricing since they have to pay the loans. But it is happening as we speak.

I have friends with land around Kikuyu, Thika road etc that people are just looking at and then saying "we shall come tommorow".

Property bursts are not reported in the newspapers. If they are, it is too late.