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Taking a loan to buy a personal residence never makes sense. Ideally, a loan is a good idea if the project pays for that loan.Kama hiyo 200k per month is out of your pocket, don’t even bother taking that loan and being a slave to the bank
Is that interest rate fixed? I can’t buy a house of such value just to sleep and wake up.
34m???
From 13M to 34M…gosh
this is the folly with the mortgage industry in the country
how many Kenyan’s can afford a monthly mortgage of 210k, nay let me rephrase, how many Kenyans have a gross salary of 210k let alone monthly disposable cash in the same range
Boss… Net of 210… the nigga should be earning at minimum 310k gross
If you can afford to set aside over 200k monthly for mortgage repayment, why not save that 200k for like 3 years, ata kama ni kwa fixed deposit account. Hapo ukisha-save 7 milli you can approach a bank and take a loan (zile asset finance type of loans). Assuming your desired house’ value will have risen to 18 milli in the three years, you put a 7 million shs downpayment and the bank gives you 11 million as a loan. Even if that loan attracts a 5-6 milli interest, si you can comfortably repay it in 7 years (at 200k a month)?
Meaning you’ve spent a total of 10 years and around 24 million shillings (plus interest) paying for that house…as opposed to 14 years and 34.7 million.
I don’t get why these mortgages are so expensive. To make matters worse, “the bank reserves the right to change the terms and conditions without notice” :eek::eek::eek:
Iko nugu nitatumia nyuki ngoja tu ,jamaa ni loan defaulter and I guaranteed him .
Depending on your personal savings ni kusema utajenga 3020 mse. Most of the times it doesn’t make sense but sometimes, just sometimes…morgage ni upuss but a normal loan frm sacco sioni ikiwa mbaya
Only 2,445 new mortgages were issued by 34 banks in 2015. By September 2016, there were only a total of 24,458 accounts in the WHOLE country.
Mortgages do not make any financial or economic sense unless you are only topping up maybe 10-20% balance to own a property on top of cash that you ACTUALY have.
Taking on such a big loan to purchase a house just like @M2Random has said is one of the most stupid ideas one can have. Residential houses are not assets and may actually be judged as liabilities since day to day maintenance of the property(fencing, mowing, furnishing, gates, gardening etc etc) takes money out of your pocket instead of putting money in it.
A loan should only be undertaken in an instance in which the endeavour that is being financed is generating capital to pay back the loan.
Funny enough. This 13.5m is the value of a 2 bedroom apartment in Westlands, Lavington etc
Wasn’t even talking about net, was talking about gross
Mortgages are grossly over priced making them unaffordable for most of the people who would like to be home owners
Just put up a pole asking villagers to select their monthly income/salary ranges and you will see where majority lie (if they are honest)
Never understood why the economics buffs like @Okiya can’t reconcile these fact and re-align mortgages
True.
Pole sana khwas.
210k monthly comes to about 2.5m per year. Hapo kama uko na mburoti in an ideal place unajenga foundation hadi slab with one room completely done where you can sleep if you want. By the third year, unaishi kwako bila stress ya loan, sijui mortgage na landlord
Zii. Nitajenga kwenye mfuko itanifikisha. I invest in land and shares and 4 years from now I expect to have a massive liquidity event which will pay for a flat in full. Mambo ni strategy. Taking a big loan is making your banker rich and yourself poor. You should figure out how to make that big cash instead.
How much rent can that house fetch in the market? That income over the same period factoring interest will give you a fairly good idea of reasonable market value of the investment. That’s why there are many investors stuck with over valued properties that can not service loans used to finance their purchase through rental income or that can not be easily disposed without incurring losses.
200k aside a month :D:D:D:Dwacha mchezo, factor in inflation, mahitaji ya bibi, car payments, na in fourteen years kids will probably be in college. either hiyo hao itaenda ama utalilia kwa choo due to zero savings… na man bila rainy day fund ama retirement fund is doomed
i see it in 2 sides;
If you get scheme rates, usually 3-5% for mortgages, you can get a house and even when you rent it out the rent can give you some income on top of monthly repayments.
If you go for market rates, around 14%, that might be too expensive unless your salary is heavy…Guys earn good out here. that example needs salary of 800-1M
Otherwise, if given 13 M like this case here, imagine what you can do in the counties and how fast it can bring back returns …take for example the mabati gorofas that need less capital, less maintenance and return is higher