Stock market (dividends) vs real estate

With a figure of $1,000,000 Wich is better to invest in.

Diversify. Invest in both. They’re both solid choices

Which property? Which stocks? Vague question.

jaba stocks

Treasury bonds

Over a 100 Kenyan million,kula pole pole hadi ukufe.

Infrastructure bond yenye iliisha jana ilikua na interest ya 12.24%…

Hii mse aliekelea10m, atakua anapoket 102k tax free kila month.

Unlike rental, you don’t have to fuatana na tenants kila end month, ooo repairs, mara unoccupied units, and don’t forget hassle ya kujenga etc etc.

Weed business, unakuwa baba yao.

Building rentals for $1M or investing in dividends stocks such as ABSA Kenya, coop, stanchart.

Damn. That’s a good return. This beats stocks and real estate and gives steady income without hassle.of tenants

If you had to pick one, which would it be

If you had that money you wouldn’t be asking us these stupid question


Bonds look like good investments until you realize that you lose your principal to inflation. If inflation is 5% per year, your real return is about 7% not 12%. Rents and dividends are generally protected from inflation.

Not in Kenya. Huku Kenya there are very few locations where you can steadily increase the rent to keep up with inflation. Outside of the leafy suburbs ukiongeza rent utakujiwa na Mungiki

If you have Kshs 10 million right now, 100k per month is very little money!!! cant even pay for your incidentals comfortably. You need to have that money make active income for you… achana na passive income. $1 Mill on other hand can get you $10K per month comfortably…hiyo unaeza weka passive income stream vizuri

Dividends are only issued when a company is profitable. So in loss making quarters, theres no dividend issued. And dividends are low when profits are low- that is, they are proportional to profits. On top of that, even if a company is profitable, there is no requiremennt to issue dividends. It may decide to churn its profits elsewhere eg capital expenses, and therefore not issue dividends.
Purely playing the stock market is risky. Your stock can tank. If you have to, place a good percentage into bonds. Bonds vs Real estate is a different discussion all together.

Kindly disclose all the information you’re withholding, like Risk factor, Losses and most of all, how the $10k will be consistent every month. Au uwache tu uongo.

We are trying to weigh between stocks and real estate.

I think it depends. Maybe uko na io 10m, yes, but you are employed penye kazi hushikana proper. You may not have the time to pursue active income. Or umesha retire, so basically you are on a cruise.

Then again, the sufficiency of 100k for someone with 10m is debatable. Hapo kuna many variables.