Renting vs Owning

Link: https://firstavenueproperties.co.ke/property/kencom-sacco-homes-runda-kiambu-road/
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These 4-bed plus SQ houses in Runda cost 35 million each. They rent for 150k/month according to the advert. Let’s assume that the figures are accurate and fixed for simplicity. Who benefits more/who is smarter than the other between the guy who rents for 150k and the guy who buys at 35 million??

Both enjoy the same standard of living and have identical houses.

Is owning always wiser than renting? Food for thought.

You can buy it for 35 million and rent it for 150k a month ( 1.8 M a year).
Rent it for 10 years (18million) and sell it for 35 MIllion. a profit of 18 Million( minus expenses)

51% return in 10 years with 100% occupancy. That is an absolute best case scenario and still, the return is not attractive.

Rent = cashflow to the owner =power
The owner can easily buy another home and tenants will pay for without him ever going back to his pocket.

The egg chicken situation… People have individual preferences and circumstances hence like trump supporters half love are for it half against

Swali ni hii Randy. You have a hypothetical 35 million and one condition is that you must live in the house. Would you choose to rent it or buy it? Personally I would rent it at 150k and use the 32+ million to build multifamily property (apartment block). I have a feeling that you would do likewise because it is a smarter use of your money.

I don’t think that rent is 150k. That’s too low.

Alternatively, you can start a business with 35 M and pray to God it succeed with gatheca economy and KRA + kanjo +karao+ @snapdragon

I read that from the advert. Sio mimi nimesema.

I would rather rent it.buying is not prudent at all

Preferences don’t count here because it is a debate about the same house. Either way you get to live in it either as a tenant or owner. You enjoy the same standard of living regardless of ownership.

My opinion also. There is better use of that 35 mil than tying it down in a house. My opinion is that owning is not always a smart decision. Sometimes it is smarter to rent.

Another person would buy the house. Use it as collateral to get a loan to build apartments.

I will go for the apartment block which has more cashflow… but the ppl who buy this houses are ppl whose networth is more than double the price of that house.

And people wonder why banks keep posting mega-profits. Banks would have him for lunch with interest payments.

He will still repay his loan using proceeds from rent. Or do you think all these apartments were built without bank loans?

You haven’t met middle class wannabes in this city my friend. They buy those houses through mortgages. Statistically, a house is the largest “investment” most families have and most of their networth is trapped in it. This is true everywhere including here.

Simple plan bei ya jioni nyumba one bedroom, one washroom, dinner/study holiday home huko virginia county Itakua cheda ngapi mason?

Unless you given the house for free, then you don’t have to subject yourself to a kind of merry go round thing.

Kwanini untaka 1 bedroom