Real Estate,Land Speculation and the Folly of Wealth Creation in Kenya.

Randy

Village Sponsor
What a BS excuse :D:D Umejifanya mjuaji mtu huenda huko frequently akakukosoa. You can't tell me hujui that juu ni shops pia and even a random guy like me who last visited the mall in Feb knows. Why do you think I prefer going to the hub instead of waterfront and yet waterfront is right across Karen Brooks nikiwa hizo sides??
Most of the times in have gone there i usually go to builders which has a separate entry and I occasionally stroll to the mall for lunch. i have never bothered to check what is happening on the top floor.
:D:D:D ..... and thank you for letting me know you go to the hub. Io iko wapi?
 

T-Raww1

Village Elder
Stop lying chief:D:D I frequent this mall alot and I would give 20% occupancy.....Kwanza the upper floor have very few shops operating the rest are empty,in fact ziko less than 10.
Same here ... I've also been to gateway mall along Msa road and lemmi tell you izi malls zote ni disaster. Third floor is just a few saloons uko kwingine ni vacant. Nobody is intrested
 
I stopped looking for land around Nairobi a decade ago. If you are wise look along the new highways being constructed. I bought some land in near marsabit Town and recently in lokichogio.

I'm slowly building a small resort in marsabit. I'm mainly targeting overlanders and bike packers, a rapidly growing market and I know the business model. I wanted to build in watamu, Diani but that ship sailed long ago.
I want to get out of Nairobi for keeps, I can't stand it...the city and the 'friends'.
I wish you all the best man. I like that you are thinking out of the box.
 

Micymas

Village Sponsor
Hii kenya utoe 20 billion chilings upatie mtu. And i'm sure they want it in cash being the unprofessional poor investors they are. i;m also sure they own full equity on the property and it is registered as a personal property instead of a limited company. There are so many other options if they were business savvy but all that has eluded them. Huwezi endelea kushia ni kama tuko 18th century AD unatreat investment kama barter trade. i doubt the mall is that unprofitable, it is just run by a bunch of haughty villagers who view the investment world with an extremely narrow lens and reject all professional intervention
 
Tembea Juja City Mall mjionee venye malls are empty. Kama uko na 10 billion utaachiwa hiyo Waterfront. The first thing you should do is look to do is to drain that water pond and put up apartments there around the mall.
 
Yeah, try selling it ndo utajua sio store of value. Good luck with brokers like @Azor Ahai and time-wasting buyers. Nowadays ata banks wanakataaa to use plots as collateral for loans, and if they do so they will only give you a 25% of the estimated value. Plots are the worst store of value, ata heri ununue toyota premios IMO. Atleast hizo wakenya watakazana kuzichukua at reasonable prices.
I'm not well informed on this topic. What do bank use as collateral nowadays if not land?
 
Spot on! Mimi when i bought my first car before buying those meaningless 1/8 plots that people think are the keyholders of wealth karibu my parents wanimalize. In this country, people are so risk-averse that they better sink 10M buying a useless 0.5acre in Thika that they will never recoup than use 10% of that dough to launch an ecommerce website, venture into dropshipping, try trading cryptocurrencies etc. Gone are the days when OWNING land used to be factor of production, especially considering that you can now lease even 50 acres and do whatever you want to do, harvest the produce and pack up after your lease period is over. Nowadays even buying a house is just plain stupid when you can rent the same for cheaper than the projected ROI. In the house i live i calculated that it will take the owner over 30 years of me living there for him to recoup his initial investment. The man is 55, he will probably be long dead before then and leave this kids squabbling over it.

Young people especially sisi below 30 should endeavor to do better than this. And with the rise of AirBnBs and the cheap motels hata hakuna haja ya those retirement/holiday homes that folks use to set up ocha or at the coast that they use once a year. The world is changing................FAST!
The problem over hoarding of land was exerbated when influencial individuals in the former president Moi's Government started grabbing land and selling it for 100 fold their worth.
Everybody wanted to get on the land gravy train and land buying, grabbing etc became turbocharged.
Then came compensation for SGR, Roads And other Government projects...
There was total disregard to the real cost of land leading to exagerated land prices...
ROI on land is being squeezed on at increasing rate.
Very few people, other than indians are using land for production (Not subsistence) purposes...
Land has been curved into small uneconomical units which are only suitable for capital killing projects...
Dead capital in the form of massive houses that people visit only twice in a year...
 

Thirimaii

Múndú Mwenda Andú
Fellow Villagers,

This asinine and talismanic obsession with buying land at made up prices is something that I have a very hard time wrapping my head around as a Kenyan. How did it come to be that we were conditioned to fantasize about owning parcels of earth especially when land is no longer a factor of production in this age of science? What curse is this that every Kenyan has of wanting to buy land and putting up monolithic structures yet it is the most illiquid and biggest wealth trap especially now when liquidity is the weapon to beating your way around any new emerging market?

Case in point,the Muguku family. One of the most prolific moneyed family of our era made a massive blunder by pulling together an odd 3 billion and some change to put up Waterfront Mall in Karen and now are asking for 20 billion to dispose of this money pit! A whooping $200 million USD for a mall that does not produce any capital goods!Is this why as a continent we contribute zero to the global economy because we refuse to understand economics?

If you are under the age of 30,let us not repeat the mistakes of our forefathers and perpetuate this fanatical and flawed way of thinking.Don't ever buy land, instead get yourself good reliable internet,a desktop computer and read everything and anything you come across until your eyes are at the verge of falling out of their sockets. Make a product,create value and you will unlock wealth like none before has seen. Don't follow the path well trodden, always look for the secrets yet to be known by all. View attachment 361331 View attachment 361332 View attachment 361333

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Karoga

Village Elder
:D:D:D:D:D. .......ATI 20 billion ,some niggas got jokes, waterfront isn't worth even 5 billion it's built on a swamp,heri you buy galleria or the hub.
 

Dunya

Village Elder
Spot on! Mimi when i bought my first car before buying those meaningless 1/8 plots that people think are the keyholders of wealth karibu my parents wanimalize. In this country, people are so risk-averse that they better sink 10M buying a useless 0.5acre in Thika that they will never recoup than use 10% of that dough to launch an ecommerce website, venture into dropshipping, try trading cryptocurrencies etc. Gone are the days when OWNING land used to be factor of production, especially considering that you can now lease even 50 acres and do whatever you want to do, harvest the produce and pack up after your lease period is over. Nowadays even buying a house is just plain stupid when you can rent the same for cheaper than the projected ROI. In the house i live i calculated that it will take the owner over 30 years of me living there for him to recoup his initial investment. The man is 55, he will probably be long dead before then and leave this kids squabbling over it.

Young people especially sisi below 30 should endeavor to do better than this. And with the rise of AirBnBs and the cheap motels hata hakuna haja ya those retirement/holiday homes that folks use to set up ocha or at the coast that they use once a year. The world is changing................FAST!
People aspire to own homes to live freely from rules of rentals and such. Eti you cant park here, you cant have a bash, your music is loud. Or even asked to move eti the landlord wants to use the house for other purposes. People value stability. So land will be king for a long time.
Just today i saw in the news that hackers stole millions in crypto recently. So, its still very hard to have a common mwananchi trust crypto's as a store of wealth
 

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