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Is Taking a Mortgage the WORST Decision Ever??
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alutacontinua
#871 Posted : Tuesday, August 02, 2016 7:31:36 PM
Rank: Member

Joined: 3/23/2011
Posts: 304
https://centralbank.go.k...pervision-annual-report

Just read through section 2.8 Residential Mortgages Market Survey 2015:

Summarized it below

1. Value of mortgage loan assets stands at 203.3B vs. 164.0B in 2014.(Up 23%)

2. Total number of mortgages is 24,458 vs. 22,013 in 2014 (Up 11.11%)

3. Outstanding value of Non-Performing Mortgages is 11.7B vs. 10.8B in 2014. (Up 8.33%)

4. The NPLs to gross mortgage loans was 5.8% which was below the industry ratio of 7.0%

5. 89.3% of mortgage loans were on variable interest basis compared to 92.5% in 2014.

6. 71.6% of lending to the mortgage market was by 5 institutions i.e. One medium sized bank (23.4%) and 4 banks from the large banks peer group (48.2%) (Specific banks are not mentioned)

7. Number of institutions offering mortgages were 34 compared to 37 in 2014 due to liquidation of Dubai Bank and placement of Imperial Bank Limited and Chase Bank Limited in receivership.
You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Kurious
#872 Posted : Thursday, October 20, 2016 7:33:41 AM
Rank: New-farer

Joined: 6/26/2013
Posts: 15
alutacontinua wrote:
https://centralbank.go.ke/index.php/news/498-2015-bank-supervision-annual-report

Just read through section 2.8 Residential Mortgages Market Survey 2015:

Summarized it below

1. Value of mortgage loan assets stands at 203.3B vs. 164.0B in 2014.(Up 23%)

2. Total number of mortgages is 24,458 vs. 22,013 in 2014 (Up 11.11%)

3. Outstanding value of Non-Performing Mortgages is 11.7B vs. 10.8B in 2014. (Up 8.33%)

4. The NPLs to gross mortgage loans was 5.8% which was below the industry ratio of 7.0%

5. 89.3% of mortgage loans were on variable interest basis compared to 92.5% in 2014.

6. 71.6% of lending to the mortgage market was by 5 institutions i.e. One medium sized bank (23.4%) and 4 banks from the large banks peer group (48.2%) (Specific banks are not mentioned)

7. Number of institutions offering mortgages were 34 compared to 37 in 2014 due to liquidation of Dubai Bank and placement of Imperial Bank Limited and Chase Bank Limited in receivership.



Great summary that shows the trend, it would be interesting to see how the 2016 mortgage outlook will compare to the 2015 one.
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Dahatre
#873 Posted : Wednesday, December 21, 2016 8:16:07 PM
Rank: Member

Joined: 12/21/2009
Posts: 602
Interesting twitter thread about mortgages--A bit biased against them, but the statistics are interesting:

Creating affordable mortgages is an area ready for MAJOR disruption..

https://twitter.com/dnah...tatus/811308410335612928
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washiku
#874 Posted : Thursday, March 15, 2018 8:30:19 PM
Rank: Chief

Joined: 5/9/2007
Posts: 13,095
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obiero
#875 Posted : Thursday, March 15, 2018 9:12:43 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,215
Location: nairobi
washiku wrote:
The discussion continues, two years later

https://mobile.nation.co...41826-ou6p6g/index.html

Most Kenyans cannot afford the rents right now

KQ ABP 4.26
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Wakanyugi
#876 Posted : Friday, March 16, 2018 1:08:11 PM
Rank: Veteran

Joined: 7/3/2007
Posts: 1,635
obiero wrote:
washiku wrote:
The discussion continues, two years later

https://mobile.nation.co...41826-ou6p6g/index.html

Most Kenyans cannot afford the rents right now


Actually the famed real estate sector burst has already happened but in the high price segment. Demand for mid and lower class housing is however so high that this correction will have no effect on this segment. This is where Uhuru should focus all his housing effort under the big 4. It is also where margins are likely to remain highest.
"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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wukan
#877 Posted : Friday, March 16, 2018 2:50:42 PM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,654
Wakanyugi wrote:
obiero wrote:
washiku wrote:
The discussion continues, two years later

https://mobile.nation.co...41826-ou6p6g/index.html

Most Kenyans cannot afford the rents right now


Actually the famed real estate sector burst has already happened but in the high price segment. Demand for mid and lower class housing is however so high that this correction will have no effect on this segment. This is where Uhuru should focus all his housing effort under the big 4. It is also where margins are likely to remain highest.


Demand describes a consumer's desire and willingness to pay a price for specific good or service. If the consumer cannot rent then he will not generate demand. If demand was so high then the private sector would have rushed to supply houses to meet this segment.

A decent mid/lower class house of 3m at 12% interest spread over 20 years will require 33k per month. Simply put the consumer lacks the purchasing power and as such resources/capital should be better utilized in lifting the consumer's purchasing power not subsidizing his poverty.
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obiero
#878 Posted : Monday, April 30, 2018 4:11:34 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,215
Location: nairobi
wukan wrote:
Wakanyugi wrote:
obiero wrote:
washiku wrote:
The discussion continues, two years later

https://mobile.nation.co...41826-ou6p6g/index.html

Most Kenyans cannot afford the rents right now


Actually the famed real estate sector burst has already happened but in the high price segment. Demand for mid and lower class housing is however so high that this correction will have no effect on this segment. This is where Uhuru should focus all his housing effort under the big 4. It is also where margins are likely to remain highest.


Demand describes a consumer's desire and willingness to pay a price for specific good or service. If the consumer cannot rent then he will not generate demand. If demand was so high then the private sector would have rushed to supply houses to meet this segment.

A decent mid/lower class house of 3m at 12% interest spread over 20 years will require 33k per month. Simply put the consumer lacks the purchasing power and as such resources/capital should be better utilized in lifting the consumer's purchasing power not subsidizing his poverty.

@wukan.. meanwhile, there is a property sold weeks ago in Magnolia Close Karen going at KES 600m to a Kenyan! https://answersafrica.co...as-luxurious-houses.html

KQ ABP 4.26
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wukan
#879 Posted : Monday, April 30, 2018 5:04:04 PM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,654
obiero wrote:
wukan wrote:
Wakanyugi wrote:
obiero wrote:
washiku wrote:
The discussion continues, two years later

https://mobile.nation.co...41826-ou6p6g/index.html

Most Kenyans cannot afford the rents right now


Actually the famed real estate sector burst has already happened but in the high price segment. Demand for mid and lower class housing is however so high that this correction will have no effect on this segment. This is where Uhuru should focus all his housing effort under the big 4. It is also where margins are likely to remain highest.


Demand describes a consumer's desire and willingness to pay a price for specific good or service. If the consumer cannot rent then he will not generate demand. If demand was so high then the private sector would have rushed to supply houses to meet this segment.

A decent mid/lower class house of 3m at 12% interest spread over 20 years will require 33k per month. Simply put the consumer lacks the purchasing power and as such resources/capital should be better utilized in lifting the consumer's purchasing power not subsidizing his poverty.

@wukan.. meanwhile, there is a property sold weeks ago in Magnolia Close Karen going at KES 600m to a Kenyan! https://answersafrica.co...s-luxurious-houses.html


Wow! that like 1 acre in CBD.
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muandiwambeu
#880 Posted : Thursday, March 14, 2019 10:37:40 PM
Rank: Veteran

Joined: 8/28/2015
Posts: 1,247
you have been enjoying a lot, something nasty just went into the mix, and profuse sweltering is going to be the order of the day inside this housed'oh! d'oh! d'oh! d'oh! d'oh! Sad .
,Behold, a sower went forth to sow;....
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  | | Edit by user: Thursday, March 14, 2019 10:39 PM | Reason: Not specified
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