If real estate is such a great investment...

School: extremely difficult to get full-paying students and still maintain top notch staff. Furthermore, you need a huge amount of students to break even.

hotel: I have no knowledge on this. What type of hotel? Regular cheap motels ama high end ones?

Exactly. That’s why the return is higher because of the higher risk. Low risk high return investments don’t exist bruv. Risk and reward are directly correlated.

Anyway, to avoid digressing, I hope you now understand why Kenyans can’t get rich borrowing money from the bank at market rates and building apartment blocks for rent. That door is sealed shut by interest rates being so damn high.

The few big landlords I know get richer by using the apartment blocks as collateral for loans. For example, if you have a 50M property, you borrow 10M from the bank and the property pays that loan off. You use that 10M to start a high risk high reward business like a restaurant in Westlands. If the business succeeds you build another apartment block. If the business fails, the apartment block pays off that loan in a few years and you can take out another loan to risk in another business. Rinse and repeat.

You use the property as a proxy to access loans cheaply and quickly from the bank. You never go bankrupt because the apartment block always pays off that loan - not the business you launch. Provided you don’t over-leverage the property obviously and you fix your rates.

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Running a school or a hotel is no joke. Better to build rentals and mumunya rent pole pole without stress.

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I know. That’s not the point of the debate.

Kwanza hotel ni lots of work for little returns. Ni ngumu ukafunge Sana na hotel just observe around. Kweli you can be feeding multitudes daily lakini ROI hakuna

I don’t know so much about schools but pia hapo najua it’s not all that. My bro has an “academy” but sijeona akiball he’s hustling just like everyone else. Hizo biz copy paste kila mkenya anaingia si poa man. Maybe in the past before kujae private school kila kona. Thanks for CBC hizi academies zote with unqualified teachers zafaa zisote zifungwe