Coolbull wrote:Recently a friend gave a somewhat good suggestion regarding developing an almost 1/4 acre plot in Lower Kabete. He suggested that I can approach a bank who will finance 100% cost of construction of rentals as I will have contributed the land.
The suggestion still sounds very good to me but I wonder, what happens in instances where there is no 100% occupancy. Does the Financier lower their monthly take or I will be forced to dig into my pockets to offset the due balance?
My thinking was putting up one-bedroom mabati houses and save the money for 10-15 years and thereafter have enough to put up an apartment debt-free. Hata zikikosa watu sitakosa usingizi..
Has anyone had an experience with Islamic banking loans? Maybe these one are 'kinda'risk-free - mnaumia pamoja.
First, it's very very difficult to find a lender willing to finance 100%. Yes, you are contributing the land but still it's very very hard. And, if you find one, terms and rates will be out of this world. Regarding less than 100% occupancy, you will have to make up the difference and remit your agreed monthly payment to the financier. Good luck and please do let us know what you find out!
Regards,
Penny!
“None but ourselves can free our minds.”
- Bob Marley