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Is Taking a Mortgage the WORST Decision Ever??
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enyands
#781 Posted : Wednesday, April 27, 2016 4:17:34 AM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
MaichBlack wrote:
Impunity wrote:
MaichBlack wrote:
Unaffordable mortgages. Only 22,000 mortgages in the country!

And these are mostly people putting up commercial buildings - malls, offices etc. - and can charge a premium to afford the loan repayments!!!


In mayuu countries Mogej rates are at 3 to 6%...hii yetu ya 23% and variable cant make it.

Mark Zuckerberg got his mortgage at 1%. The rest of the Americans were getting theirs at between 2% and 4%.

Giving a whole new meaning to "the" 1%



Zukherburger gets mortgage for 1%???. Why can't he buy cash and the way he is worth 30+ billion Usd .ama ni mimi sielewi kitu? Ama in America you have to take mortgage no matter how rich you are??
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Impunity
#782 Posted : Wednesday, April 27, 2016 8:40:04 AM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
enyands wrote:
MaichBlack wrote:
Impunity wrote:
MaichBlack wrote:
Unaffordable mortgages. Only 22,000 mortgages in the country!

And these are mostly people putting up commercial buildings - malls, offices etc. - and can charge a premium to afford the loan repayments!!!


In mayuu countries Mogej rates are at 3 to 6%...hii yetu ya 23% and variable cant make it.

Mark Zuckerberg got his mortgage at 1%. The rest of the Americans were getting theirs at between 2% and 4%.

Giving a whole new meaning to "the" 1%



Zukherburger gets mortgage for 1%???. Why can't he buy cash and the way he is worth 30+ billion Usd .ama ni mimi sielewi kitu? Ama in America you have to take mortgage no matter how rich you are??


Why take a loan to buy a house whn he can use someone else money to buy the house and invest his own money elsewhere?
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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alma1
#783 Posted : Wednesday, April 27, 2016 8:45:47 AM
Rank: Elder

Joined: 9/19/2015
Posts: 2,871
Location: hapo
I always laugh when people try to downplay economic reality with patriotic messages. Math don't lie.

You can't continue pouring money into real estate investments when the market has obviously gone down from the heady days of buying a plot for 100k and selling it for 500k after 2 years. Those days are dead and buried.

You have to add value to land in order to reap any benefits thereby increasing your capital exposure in the short run in the hope that one day the "southern bypass" shall be built near here and property values shall shoot up as Maina Kageni would say.

I have personally suffered from property flat lines. Even stock declines. Even had my portfolio wiped out in one day in the stock market...Something called the tech boom. So excuse me if I happen to be very cautious and like walking around rather than reading reports from people's who's main business idea is to sell someone else a house. If they really believed in their own hype, they would hold on to the property and wait rather than pass it off to the gullible "investor".

If you want to test my theory, just put a for sale sign on your property today. Then advise us accordingly on this thread. I love learning new things every day and would very gladly take back all I have said.
Thieves are not good people. Tumeelewana?
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enyands
#784 Posted : Wednesday, April 27, 2016 8:46:44 AM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
Impunity wrote:
enyands wrote:
MaichBlack wrote:
Impunity wrote:
MaichBlack wrote:
Unaffordable mortgages. Only 22,000 mortgages in the country!

And these are mostly people putting up commercial buildings - malls, offices etc. - and can charge a premium to afford the loan repayments!!!


In mayuu countries Mogej rates are at 3 to 6%...hii yetu ya 23% and variable cant make it.

Mark Zuckerberg got his mortgage at 1%. The rest of the Americans were getting theirs at between 2% and 4%.

Giving a whole new meaning to "the" 1%



Zukherburger gets mortgage for 1%???. Why can't he buy cash and the way he is worth 30+ billion Usd .ama ni mimi sielewi kitu? Ama in America you have to take mortgage no matter how rich you are??


Why take a loan to buy a house whn he can use someone else money to buy the house and invest his own money elsewhere?



What do you mean invest somewhere ? The dude has 30 billions .20 million dollars mortgage is just some shitty pocket change . Anyway still remains I don't get it . With the little accounts I have is, a house fully paid for is an asset since you can use it to take a collateral for a loan . But a payment plan for a house ama mortgage is a liability since you have to Pay it off for 30 yrs to be free. So is he better off having an asset ama liability? Knowing that he has 2 billion in liquid cash somewhere .I still don't get it ?
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Ash Ock
#785 Posted : Wednesday, April 27, 2016 8:58:13 AM
Rank: Member

Joined: 8/27/2010
Posts: 495
Location: Nairobi
enyands wrote:
What do you mean invest somewhere ? The dude has 30 billions .20 million dollars mortgage is just some shitty pocket change . Anyway still remains I don't get it . With the little accounts I have is, a house fully paid for is an asset since you can use it to take a collateral for a loan . But a payment plan for a house ama mortgage is a liability since you have to Pay it off for 30 yrs to be free. So is he better off having an asset ama liability? Knowing that he has 2 billion in liquid cash somewhere .I still don't get it ?


It's actually very simple; the wealthy allow their money to work for them.

Zuckerberg is probably getting around 3% returns on his fortune (I seriously doubt he even has $2m cash), each and every year.

Stupidity would be to blow cash on his house when he can finance it at 1%.

Do the math.
Sent from my Black Nokia 3310
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Swenani
#786 Posted : Wednesday, April 27, 2016 9:25:10 AM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
Ash Ock wrote:
enyands wrote:
What do you mean invest somewhere ? The dude has 30 billions .20 million dollars mortgage is just some shitty pocket change . Anyway still remains I don't get it . With the little accounts I have is, a house fully paid for is an asset since you can use it to take a collateral for a loan . But a payment plan for a house ama mortgage is a liability since you have to Pay it off for 30 yrs to be free. So is he better off having an asset ama liability? Knowing that he has 2 billion in liquid cash somewhere .I still don't get it ?


It's actually very simple; the wealthy allow their money to work for them.

Zuckerberg is probably getting around 3% returns on his fortune (I seriously doubt he even has $2m cash), each and every year.

Stupidity would be to blow cash on his house when he can finance it at 1%.

Do the math.


Ditto!
If Obiero did it, Who Am I?
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washiku
#787 Posted : Wednesday, April 27, 2016 9:51:26 AM
Rank: Chief

Joined: 5/9/2007
Posts: 13,095
enyands wrote:
MaichBlack wrote:
Impunity wrote:
MaichBlack wrote:
Unaffordable mortgages. Only 22,000 mortgages in the country!

And these are mostly people putting up commercial buildings - malls, offices etc. - and can charge a premium to afford the loan repayments!!!


In mayuu countries Mogej rates are at 3 to 6%...hii yetu ya 23% and variable cant make it.

Mark Zuckerberg got his mortgage at 1%. The rest of the Americans were getting theirs at between 2% and 4%.

Giving a whole new meaning to "the" 1%



Zukherburger gets mortgage for 1%???. Why can't he buy cash and the way he is worth 30+ billion Usd .ama ni mimi sielewi kitu? Ama in America you have to take mortgage no matter how rich you are??


Ni wewe huelewi...But you can read the article and get an idea.

Quote:
Because it costs him absolutely nothing. “When you can borrow at an interest rate that’s below the rate of inflation you’re essentially borrowing for free,” says Greg McBride, senior analyst at Bankrate.com. a Florida-based firm that tracks interest rates on mortgages, auto loans, and credit cards, among others. “When you can borrow for free, there’s no sense in tying up your own money, when you can use that money for more profitable things.”
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washiku
#788 Posted : Wednesday, April 27, 2016 9:55:52 AM
Rank: Chief

Joined: 5/9/2007
Posts: 13,095
Ash Ock wrote:
enyands wrote:
What do you mean invest somewhere ? The dude has 30 billions .20 million dollars mortgage is just some shitty pocket change . Anyway still remains I don't get it . With the little accounts I have is, a house fully paid for is an asset since you can use it to take a collateral for a loan . But a payment plan for a house ama mortgage is a liability since you have to Pay it off for 30 yrs to be free. So is he better off having an asset ama liability? Knowing that he has 2 billion in liquid cash somewhere .I still don't get it ?


It's actually very simple; the wealthy allow their money to work for them.

Zuckerberg is probably getting around 3% returns on his fortune (I seriously doubt he even has $2m cash), each and every year.

Stupidity would be to blow cash on his house when he can finance it at 1%.

Do the math.


Exactly...Plus if he died in course of the 30 years(God forbid) his family will still have the house plus the money. If he bought it in cash, the family would only be left with the house and the billions would be gone forever. smile smile Ama majuu mortgages are not insured?
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Wakanyugi
#789 Posted : Wednesday, April 27, 2016 10:10:02 AM
Rank: Veteran

Joined: 7/3/2007
Posts: 1,635
washiku wrote:
Ash Ock wrote:
enyands wrote:
What do you mean invest somewhere ? The dude has 30 billions .20 million dollars mortgage is just some shitty pocket change . Anyway still remains I don't get it . With the little accounts I have is, a house fully paid for is an asset since you can use it to take a collateral for a loan . But a payment plan for a house ama mortgage is a liability since you have to Pay it off for 30 yrs to be free. So is he better off having an asset ama liability? Knowing that he has 2 billion in liquid cash somewhere .I still don't get it ?


It's actually very simple; the wealthy allow their money to work for them.

Zuckerberg is probably getting around 3% returns on his fortune (I seriously doubt he even has $2m cash), each and every year.

Stupidity would be to blow cash on his house when he can finance it at 1%.

Do the math.


Exactly...Plus if he died in course of the 30 years(God forbid) his family will still have the house plus the money. If he bought it in cash, the family would only be left with the house and the billions would be gone forever. smile smile Ama majuu mortgages are not insured?


For someone like Zuckerbug a mortgage is not a liability. It is actually a tax reduction asset.

In mayuu, you get all sorts of tax benefits from carrying a mortgage as well as deductions on capital gains if you sell at a loss.

Wapi Kiash afafanue hii maneno?
"The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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hardwood
#790 Posted : Wednesday, April 27, 2016 10:11:40 AM
Rank: Elder

Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
Swenani wrote:
Ash Ock wrote:
enyands wrote:
What do you mean invest somewhere ? The dude has 30 billions .20 million dollars mortgage is just some shitty pocket change . Anyway still remains I don't get it . With the little accounts I have is, a house fully paid for is an asset since you can use it to take a collateral for a loan . But a payment plan for a house ama mortgage is a liability since you have to Pay it off for 30 yrs to be free. So is he better off having an asset ama liability? Knowing that he has 2 billion in liquid cash somewhere .I still don't get it ?


It's actually very simple; the wealthy allow their money to work for them.

Zuckerberg is probably getting around 3% returns on his fortune (I seriously doubt he even has $2m cash), each and every year.

Stupidity would be to blow cash on his house when he can finance it at 1%.

Do the math.


Ditto!


He could even be better of if he rented instead of buying. Why buy a cow when all you need is milk.
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