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Is Taking a Mortgage the WORST Decision Ever??
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Gathige
#841 Posted : Tuesday, July 12, 2016 12:03:07 PM
Rank: Elder

Joined: 3/29/2011
Posts: 2,242
mlennyma wrote:
newfarer wrote:
www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html

i consider a NPL invested in a property secure provided the lender keeps on check the duration of default



A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore.
"Things that matter most must never be at the mercy of things that matter least." Goethe
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Wakanyugi
#842 Posted : Tuesday, July 12, 2016 12:35:23 PM
Rank: Veteran

Joined: 7/3/2007
Posts: 1,635
Impunity wrote:
Wakanyugi wrote:
There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).

This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).

If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?

I hope young Wazuans don't get taken in and forget that every story is only half a story at best.



For DECADES Bernard Madoff's PONZI was real and all the people in it thought they were not suckers...but they painfully realized they were actually hapless suckers...the only difference here is/was the time!

#Happy hunting.


Lesson number 1 from Strategy 101: 'Thou shalt not make important decisions on the basis of exceptions but rather on established patterns.'

The Madoff incident is not a pattern but an exception, an outlier within a multi trillion dollar global industry. Even the point that some of you may have had a nasty experience with mortgages does not establish dogma that the rest of us must follow. Everyone's case is different.

Again I hope young Wazua investors are digesting all this with a hefty dose of salt.
"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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lochaz-index
#843 Posted : Wednesday, July 13, 2016 6:41:20 AM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
Gathige wrote:
mlennyma wrote:
newfarer wrote:
www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html

i consider a NPL invested in a property secure provided the lender keeps on check the duration of default



A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore.

Exactly. More so, the sale and/or court process involved in realizing some of these securities is a total bog down...banks have to take the hit in their balance sheets way before such proceeds come on board.
The main purpose of the stock market is to make fools of as many people as possible.
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iris
#844 Posted : Wednesday, July 13, 2016 11:32:18 AM
Rank: Member

Joined: 9/11/2014
Posts: 228
Location: Nairobi
Wakanyugi wrote:
There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).

This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).

If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?

I hope young Wazuans don't get taken in and forget that every story is only half a story at best.



I have been following this thread for education on the differences between risk takers (most entrepreneurs are a subset) and non-risk takers. Finance at even extortionist interest rates like 24% put to good use will bring in unimaginable gains, whereas patiently working on savings forever will probably make one comfortable but never very wealthy. I know someone is going to say this on mortgage, but the principle is just the same. It all depends on how you use it.
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Siringi
#845 Posted : Wednesday, July 13, 2016 5:00:04 PM
Rank: Elder

Joined: 6/8/2013
Posts: 2,517
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Swenani
#846 Posted : Wednesday, July 13, 2016 5:24:13 PM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
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Obi 1 Kanobi
#847 Posted : Thursday, July 14, 2016 3:49:48 PM
Rank: Elder

Joined: 7/23/2008
Posts: 3,017
lochaz-index wrote:
Gathige wrote:
mlennyma wrote:
newfarer wrote:
www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html

i consider a NPL invested in a property secure provided the lender keeps on check the duration of default



A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore.

Exactly. More so, the sale and/or court process involved in realizing some of these securities is a total bog down...banks have to take the hit in their balance sheets way before such proceeds come on board.


If you follow best accounting practices and the prudential guidelines diligently, you will never get a surprise hit on your balancesheet. It is the greedy CEO's/CFO's and moron directors who cut corners and are shocked when reality strikes.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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washiku
#848 Posted : Thursday, July 21, 2016 5:14:35 PM
Rank: Chief

Joined: 5/9/2007
Posts: 13,095
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Othelo
#849 Posted : Thursday, July 21, 2016 5:19:30 PM
Rank: User

Joined: 1/20/2014
Posts: 3,528
washiku wrote:

Wapi 'others' smile Kwani mortgage is only in Nairobi. very daft thinking for an investment firm ..... come see how Nakuru is expanding.
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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DBLyon
#850 Posted : Thursday, July 21, 2016 5:37:12 PM
Rank: Member

Joined: 5/28/2014
Posts: 149
Location: Nairobi
iris wrote:
Wakanyugi wrote:
There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).

This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).

If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?

I hope young Wazuans don't get taken in and forget that every story is only half a story at best.



I have been following this thread for education on the differences between risk takers (most entrepreneurs are a subset) and non-risk takers. Finance at even extortionist interest rates like 24% put to good use will bring in unimaginable gains, whereas patiently working on savings forever will probably make one comfortable but never very wealthy. I know someone is going to say this on mortgage, but the principle is just the same. It all depends on how you use it.


Hear hear.
When you live for others' opinions, you are dead.

- Carlos Slim Helu
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