Hello Villagers,
I have been calculating the rates offered by CIC MMF i,e 9% p.a vs the ones promised by the investment in the contemporary rental apartments i.e 10% p.a (in the most ideal case) and have concluded that the CIC MMF is the way to go.This is because in MMF you dont have to worry about vacant units,troublesome tenants,repairs and such…Assuming you have 30 million to invest in either of the 2,which one would you chose?
Forrowing u mbirrionaire newbie
You ignored the fact that rental apartments offer capital gains and there will be rental increments in future. That apartment block worth 30M today will be worth 60M in 10-15 years, and the rents will have also doubled. Meanwhile, your 30M at CIC will be intact, and you will receive a fixed amount every year.
The Money Market fund does not protect you from the biggest risk which is inflation.
Lastly, rent is received monthly while MMF returns may be received annually or semi-annually. If you understand time-value-of-money, then the rentals are the better bet because you can compound that rent at a faster rate.
You ignore that the money at CIC MMF is having its interest compounded monthly which in the long run will be higher than the capital gains that can be achieved in rental apartments…and no you wont receive fixed amount each year due to the power magic of the compound interest.
Why are you ignoring the fact that he’s a new villager…
Alarm bells…
ANATAKA KUNUKISHA ONION…
Ig
If your only argument is that am a new villager shows how being an elder in ktalk is not a guarantee of high IQ
No rental can give you 10%. For starters. Rental = 5-7%
-
Benefits
Rentals - capital gain
MMF - guaranteed return on the first instance. You can plan on the return. -
Cons
Rentals - maintenance cost, occupancy issues, taxation, repair. Land rates costs, operational cost (caretaker costs, agent costs)
- Houses depreciates in value(thus repair and maintenance) but land. appreciates.
At least 18 months for you to finish building. Without recouping ANY INCOME.
In KENYA risk of your land being declared illegal.
MMF - No capital gains.
Yeah. Probably a CIC broker ameambiliwa commission akipeleka customer
MMF - No capital gains.
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I opine that the compounded interest in MMF over a certain duration is a kin to capital gains realized in rentals
Rentals all the way, infinity vs fixed, I hear the house that Jesus broke the bread ni air bnb sahii, 2000 years later kuna mtu anakula cashflow mzuri. Assuming Jesus owned the unit (and Nyetanyahu his descendant) instead of the unit aweke hio pesa MMF, well Nyetanyahu could have no land to fight for and there would be peace lakini, angekua kwa DCI ya jerusalem akirusha mawe apewe pesa yake.
Pun intended please.
But rentals all the way.
Heeeheee i like it
Personally, I have tried to analyze the capital outlay in developing rental units V/s the gains over a period of time and seems not to make any sense especially thise targeted at middle to high income earners. It would only make economic sense if the units are targeted at low income earners like those mabati units in informal settlements.
Defending your tribal king against the indefensible in 2017 showed a lack of moral and entrepreneurial compass. Hata hii analysis umefanya hatuwezi amini.
@kijanamrefu is the local expert on such deep financial matters. He is actually an expert on many issues e.g photography, video editing, health and fitness, Kikuyu history, Economics and Finance, Clearing and Forwarding of cars, Marriages and relationships etc.
He also owns several businesses including importing of cars, video studio near westgate, a gym along Thika road and a construction firm based in Thika. So he comes highly recommended.
:D:D:D:D
I would disagree with you if it was another person but seeing this is Kijana Mrefu we are talking about…Nakubaliana nawe
2007 2bdroom and 3 bdroom was 14k and 23k respectively hapa Ndoni. Sai ni 20k and 27k. I foresee stagnation in rental prices. Tafakari ya ampex
@Azor Ahai leta your input kwa hii maneno
I think it’s better to have hard assets because the future of fiat currency isn’t so certain. Or do a mix of both.
I agree with you but there was a time Azor Ahai pointed out that building rental apartments is not a game of peasant i.e those below 3o million…I tend to agree with him…Therefore,before one can accumulate huge amounts of cash that can make sense to invest in a viable rental apartment projects,MMF can be a viable option
Kaka kwani u r still held in the past? tulisonga kitabo msenangu. I wonder who were these ‘indefensible’ yet they are eating from the same plate. Anyway, hatukujua tutaja huzunika.