Risking 15M by buying property in a foreign country when you are only worth say 30M is downright stupid. There is a big difference between taking risks blindly like a moron and taking calculated risks. Buying the same property when you are worth 200M would be considered a calculated risk and even then it probably wouldn’t make economic sense unless you spend a significant amount of time in that foreign country every year on other work commitments or vacations. Most bonobos like you do not understand the concept of calculated risks. Who in their right mind would risk a significant portion of their net worth in buying a property in a foreign country he visits maybe once or twice a year?? Hakuna tofauti yako and the people who build mansions huko ocha that they never use in their lifetime. In fact, you are worse because management and legal costs would make your tiny offshore property investment unfeasible.
Lakini juu raha yako ni kusikika you own a property in Costa Rica…how much would you spend on plane tickets to Costa Rica to monitor a measely 15M “investment”? Legal costs? Management costs? Investing abroad sensibly is not a peasants game and investing less than $1M would not be worth the hustle.
You’re an idiot if you don’t know that majority of the people who own property in Cape Town, Lisbon, Mexico City don’t even live there. They buy an apartment, get a property manager and put it up for rent or airbnb and end up making $700-$1200 thereabouts every month. Is this the kind of money a billionaire would be chasing? NOPE!! The people doing this are middle class people looking for an extra few thousand dollars every month.
You’re delusional if you think billionaires would be chasing such small money. You’re even more stupid to pretend that cheap real estate overseas that cash flows isn’t a trend in this day and age. You go off of hypotheticals all the time which means you are more theory oriented. People ask questions about investing in property overseas on Reddit every damn day. You’re one clueless motherfucker Gaines.
Your property (despite being thousand of miles away) won’t go anywhere. I understand that we live in a low trust society (Kenya) so it baffles some of us that your property would be safe in a country far away. Guess what? Those are high trust societies and that’s how they function. NOT ALWAYS NOT ALWAYS so usiniletee story za vile your friend was conned in Brazil.
Open your eyes man. The world doesn’t revolve around the 50KM radius around you. Be a little bold. Risk a little. Live a little bit more. That comfort zone you’re in is destructive to your growth. Futsek!
While in school many decades ago, I visited Miami and it was a tourist place. Nice but nothing spectacular. Very many old buildings. Around 2016 I visited again and there was a huge difference. Construction everywhere all those rentals near the beach been torn down to put up highrises Kama za China. Anyway kuuliza nikuambiwaa Brazilians wame invest apo mbaya mbayya. And there was quite a few on vacation ungefkiri ulikiua hizo beach za Brazil.
Anyway with YouTube, you will find quite a few countries that allow foreigners to own land. Why stay fixated in Kenya when there’s opportunities worldwide. This generation of people are highly mobile.
South Africa has some beautiful neighborhoods. Some of the best in the world. Some of those places look like Lavington of the 80s. Green manicured forested homes. Unaingia and have to drive 40m to the house. And amazingly, they are owned by regular middle class people.
Issue sio fixation. Issue ni feasibility. You need to be a USD millionaire to make economic sense of buying property abroad. That’s the point you bonobos keep missing.
Kuna minimum amount below which it stops making sense investing abroad. Kumbuka most of those nations are a lot richer than Kenya so 15M isn’t really much there. For example, buying a 15M property in UK or America is pointless. The tickets alone will erase a significant portion of the returns hata bila kuhesabu legal fees na taxes. And this assumes that you never experience visa issues in your lifetime.
Properties in many of those nations go bust and yet their cities and states will expect you to pay multiple taxes.
The best example is that exact Miami whose Condo market is about to crash ,even as both the city of Miami raises local taxes and Florida’s property tax is increasingly going up
Is what has been claimed for 100 years about Miami. Yet it has never crashed. Most who make such claims lack funds to invest there.
If you look at the older apartment style condos, mostly owned by Jews, who started building them in the 1940s.
In this case, it is a No.
The situation is such that it is now cheaper to rent in Miami than it is to own a home. The very reverse of everywhere else in the US.
Also, in the past, those claims were based on demand from locals who actually dislike living in Condos unless they absolutely have to.
Demand for Condos has been sustained, first by Latin American immigrants who turned Miami into their mini-city, then for a short period by the Chinese until the US-China relations turned cold, then by Russians who by far have been the main drivers of condo construction in Miami until 2022.
Then there was the crypto/Work-From-Home boom that saw many techbros, crypto enthusiasts and a lot of financial managers move from places like New York to Miami.
These driving factors are no longer there.
The Russians are gone, mostly having moved to the UAE and the Chinese are focused on Australia.
Crypto was never sustainable.
The techbros and financial managers are still moving to Miami, but they are not opting for Condos, but instead moving to the suburbs of Miami.
Miami once had White flight to the suburbs, now it is seeing the same from Hispanics to some extent . If you want to own a home in Miami-Dade you will definitely not look for one within the inner city. Most are looking towards the Northwest where the ground is also higher and less prone from flooding.
People forget how the US works.
If a place is cheap(As Miami was, as parts of Tennessee like Chattanooga that people are rushing to currently are),people rush there because low property prices also means low property taxes, low local taxes as well.
When demand for housing rises, the property’s value rises and so does the amount you have to pay in terms of taxes. A $1 million dollar home may mean on average around $10-14,000 in taxes yearly. That basically drives out the working class and a large part of the middle class, raising the cost of living in the city.
The high cost of taxes is also passed on to the consumer, so everything becomes overpriced.
Today, those same Brazillians and Cubans are leaving Miami because of the latter. Most are staying within Dade but they are not going for Condos, but for stand-alone houses in the burbs.
I think people overestimate just how expensive Florida has become even without the taxes, homeowner insurance(because of hurricanes) and car insurance are high there these days (And Florida being a Southern state is a car dependent state so you have no choice).
@Gaines always has a problem with his perspective. Couple that with his age old talent of pulling data from his ass and you have a moron as a discussant. To the most part, anafikiria Ile michezo hao hucheza Kenya na title deed za watu ndio Iko kila mahali. The boy would die of shock ukimwambia Kuna places where the sanctity of the title is supreme. Tell him of the regulatory environment in most advanced society not allowing some hanky panky business na mali ya wengine and loose him completely. He has a very localised mindset.
What has this got to do with financial viability of a project? What makes you think it makes any financial sense to invest Ksh 15M in a far flung nation like Costa Rica and still expect any significant returns? Nitarudia tena to you dumbfucks, investing abroad is not a peasant’s game. The overheads are massive. Legal costs, management costs, transport costs, etc. So, unless you will be the one living in that 15M property, it is not financially feasible because of its size. Economies of scale are at play here. Ni kama wewe kuinvest in a one bedroom apartment pale Nanyuki (na you are from Nyanza). The overheads would erase the returns. To make sense of owning that tiny investment (one bedroom in Nanyuki), you would have to have other reasons to be in Nanyuki e.g that’s where you are stationed for work and you self-manage the property while living in it. But it cant make financial sense to buy such a small investment in a distant town if you have no other business being there. Now, if you have invested in an apartment block in Nanyuki yielding say 300k in rent, then it makes financial sense to invest even if you have no other reason to be there. You can afford a caretaker, property management fees, and you can even fuel your car from Nairobi to Nanyuki to check the property without impacting the earnings significantly.
In other words, I’m telling you and @DukeOfKabeteshire that you can be too broke to make sense of buying property abroad. 15 million Kenya Shillings would NOT make the cut for a viable investment property abroad. The overheads of managing the property will kill you. Msijilinganishe na Uhunye with his £10 million property in London. Hesabu zake na zako ni tofauti sana.
Rich people eat Caviar, fly first class, and ride the Orient Express. Eating Caviar and flying first class wont make you rich. Don’t mistake correlation for causation. In the same vein, rich people (Uhunye & Co) buy properties abroad. Don’t stupidly assume that buying property abroad with your peanuts will make you rich like them. There are many nuances that copy and pasters like you guys miss chief among them being economies of scale.
Wahenga walisema “The granary is built within the homestead”. Put your cash where you live, invest at home. kama unaishi mombasa, invest in mombasa, kama ni nakuru, invest in nakuru. Kama ni costa rica, then invest in costa rica.
Ungeingia YouTube kidogo ujionee. Passport bros travel worldwide kutafuta madem. Afew Nimeona wamenunua ma apartment in places like Dominican Republic. $20k will get you a 3 bedroom. $15k for a 2 bedroom. You can lease them out pia, management fee is 10%.
Also Nimeona wasee wamenunua homes pale Ghana. One guy bought a huge plot by a lake and has built a retirement home by a coffee farm.
Land pressures are not that big in other parts of the world.
I disagree with this analogy. Hiyo ni theory za watu wa 15th century. Even then, they travelled to invest. My own great great grandfather is not from Kenya.
You are pigeon holling yourself. Kenya is a very small country. There’s very few avenues to invest. The world is a gold mine. @Landlord
Passport bros spend most of their time in those target countries. Those are not purely offshore investments. Kama ulisoma comment yangu ukaelewa you would not have provided that example. Most passport bros are drawing military pensions, working remotely, or seasonal jobs so they can make financial sense of owing such small investments in the countries they frequent.
Try that when you hustle here in KE uone kama hesabu itaingiana. The juice won’t be worth the squeeze. Soma comment yangu tena hadi uielewe.
Nashangaa sana watu wakisema ati invest 15M in Costa Rica. How on earth would anyone make sense of such a small investment in such a distant country? Huku naona watu wamekuwa brainwashed sana they can’t do math. A 15M property will give a rent of 150k max before expenses and I’m being very generous. Ukitoa expenses (maintenance, legal, management, expensive plane tickets etc) they will be lucky to net anything from that property. Vitu zingine you don’t even have to be a genius to know. Hata getting a direct flight to Costa Rica is a problem. You would have to fly KQ Economy class to JFK. That alone ni 171k based on KQ website (one person round trip). Add another 65k for a round trip economy from JFK to San Jose in Costa Rica. One trip to view your property will cost you 236k without including any hotel costs, food costs, document processing inconveniences etc. Remember that you will need to visit an investment property at least 3 times a year. Your logistics alone will cost 1M per year minimum.
We live in the information age. Anyone who thinks that it is a bright idea for a Kenyan working in Kenya to buy property worth Ksh 15M in Costa Rica is obviously stupid for lack of a better word. Nikiwaambia the project would not be financially viable wanaona kama I’m shitting on their dreams.
15M property will gross 1,800,000 per year. That assumes it is 100% occupied which won’t always be the case. Travelling to Costa Rica on a very tight budget 3 times a year will cost 1M minimum. Property management costs will be 10% of gross rent i.e 180k. Maintenance will be 1% of property value i.e 150k. Add 0.25% of property value for taxes i.e 37500. Those are just the obvious direct costs of owning the property. They total 1,367,500. Deduct that from the gross of 1,800,000 you get 432,000. That does not account for phantom costs such as opportunity cost of (risk free rate is 15% from treasury bills i.e 2,250,000), vacancies (guaranteed to happen for some months), time spent travelling instead of working etc.
Why would you go through all that trouble investing 15M to earn 432k when you can eliminate all the risk, do zero work, not lose a single day of work, never stress about tenants, and never break a sweat for 2.25M interest from treasury bills?
Sadly, @DukeOfKabeteshire is a brainwashed fool who cannot do the math and see why such an investment would not be financially viable.
Not really. You need 20 years service to qualify for military pension. And you have to be still active in the military, otherwise you wait until after 60.
Most of those passport bros are just regular people living in their moms houses, work two warehouse jobs to save to travel. You can tell from their conversations skuli iliwachenga kidogo.
I used passport bros as a example but there are many other regular people who have bought houses in foreign lands. In fact 100:1 of passport bros. I see them all the time.
Yes kuna complexities but it’s doable. Vile Nime kuambia ata kuna wakenya wamenunua in Ghana, Namibia and places like that.
People do a lot of dumb stuff. It doesn’t mean you should. Investing outside your own country or region (East Africa) is not a poor man’s venture na hiyo ni kitu mnastruggle kuelewa. Na by poor I mean not worth more than $1M.
Kwa real estate kuna fixed costs na variable costs. The fixed costs of owning a property abroad are too high to make sense of small investments. Heck, hata Dubai which is just 5 hours away and 70k round trip huko the best property you can get for Ksh 15M is a studio.
Investing abroad can be profitable. That’s 100% true. It is extremely hard to make sense of buying small deals abroad because of the high fixed costs. For example, you will spend the same amount of money in fixed costs (ubers, hotels, air tickets) when travelling to Dubai to see one studio or 20 studios in the same development. A project that is profitable for a big investor with 20 units can be unprofitable to the small wannabe with 1 unit.
The issue with Kenyans hupenda playing ligi hawajafikia without doing proper investment analysis. Kama strategy yako ni kununua a 15M property abroad, fixed costs will kill you. Hakuna kitu huuma mkenya kama kumwambia hawezi afford “investment”. The same way people buy German vehicles wanashindwa kumaintain zinaozea parking.