I just came across this article: http://tairo.co.ke/the-scam-that-is-18th-acre-plot-of-land/
In my opinion, this guy has some valid arguments. Today, with 1 million, the only land you can afford is deep in the interior. A friend bought some land 1/8th for 1 million in 2014. He decided to ask around and for six months, the only serious buyers were 2 who offered 800k and 900k after more than 2 years. The era of land speculation is grinding to a halt. Right now, 8 out of ten people would buy a plot if they got 1 million as windfall income. Land speculation follows all other laws of business, when there are many speculators, prices fall or remain stagnant for extended periods. What makes people speculate on land nowadays? They only hear success stories. In my opinion, people should view land as a factor of production…therefore, it only makes investment sense to buy land that can be put into immediate use. For instance, buying 1/8th in the forest makes no sense because you cannot build your house there and you cannot do any meaningful farming. So if you buy land that you can’t use instantly due to its remoteness, you will be tying up capital and hoping that after five years of doing nothing, you find a greater fool to buy the land at a “profit”. Therefore, not all 1/8ths are great investments…in fact, if you have one million, you are likely to get prime land in your home county HQ compared to what you would get in Nairobi. Land business, like any other business, has good and bad deals…not all land deals are good even if you don’t get conned.
Hii ungewekelea mchana birionea wakiwa ritho
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Huyo Martin akunje mkia hakuna pesa yake imetumiwa
Mtoto mjinga tulia, ii mjadala ni ya birioneas…kama game imeisha laza kende.
He is saying what most reasonable people have been all along. Land has a lower rate of return than other classes of assets especially stocks.
True ile plot poa kubuy ni ile iko karibu na development upcoming
I think if you want to go the land speculation way as a business plan you ought to try in the smaller towns as they present the highest opportunities for capital gains e.g. Nyeri, Kitale, Kisii, Eldoret etc.
Hii mambo ya kununua plot in ukambani unaambiwa ati it is 70kms from Nairobi will just lead to trapped capital.
Choose ACTUAL TOWNS that are near your rural area. That way you can even team up with your old folks to farm as you wait for value appreciation. That way you continually benefit from investment as well as reduce chances of land grabbing of your dormant kabuloti
A good friend of mine took a loan to buy a plot worth 2.3m in ruiru.
Cjui kaa he took loan of all amount but to me that a very bad investment.
You have 0 amount to develop so around 4 years u repay loan without any income
With 2.3M you can do alot of things mashinani na pesa ya nairobi na mashinani has no difference
Land in nyeri is more expensive than even in Nairobi suburbs.
I believe the concerned authorities should only allow 1/8ths in urban setups, not as is the case now where even agricultural land deep in the interiors is being quartered and offered as prime plots
Land in the upmarket Ringroad in nyeri can fetch upto 2.5M 50*100 that is if ata kaa utapata
In meru milimani area over 4m but in meru kupata plot ni kazi kubwa saana
Hiyo 1/8 ringroad in 5m na hakuna.
True huko kupata plot ni very big hustle
I usually see one acre plot advertised around 5km past Embu town on your way to Mwea, around 200 metres from mainroad, ati price guide, 50m. hio si umebuy Karen or 50 acres in a place like kitale. A similar just past Embu prison, around 10km from town, i guy came and put up a macadamia factory, then county tarmarcked that road. an 1/8 goes for 3.5-4m at the moment. crazy
The only people who will tell you what a good investment it is buying land irrespective of location are the ones making money from you purchasing the land. Ask yourself, if it is a good investment why are they selling?
To hold your wealth where you don’t have access to squander it, land is a good source. But the returns of the 90s and 2000s are gone. People are still hanging on those past dreams. It is like if have ever been to where they mine gold - small scale. Everyone tells you how a friend hit the jackpot gold nugget 5 years ago. And they are all hanging on to that hope.
Land is overpriced and the situation is exacerbated by speculators who put their money in it hoping to reap big, I know of someone who owns thousand of acres in Kajiado but is leaving like a pauper because if he were to sell at the price he is being offered he would make losses and there is one who was fortunate enough to sell his 20 acres of coffee farm in Kiambu and would otherwise have died a pauper.