wakanyama didnt get value for his investment for real

[kawambui]

assuming his plot is located past king’ero as @Okiya said ama juja farm.
it rough cost is 250k plus 750k( @Wakanyama tunangoja breakdown) that equals to roughly one m.
lets say he produced 14 rental units as is the normal.
on the minimum those units might cost 2k so a month he can get 28k(minus the operation cost may an agency or a caretaker. so it will take 50 months to recoup his money.
on assumption of full occupancy and minus appreciation.
so do you think he would have gotten a better deal had he invested his million elsewhere

[system]

@Wakanyama ni mtu wa mdomo na kujichocha just wait n see vile atajibu hii

[kijanamrefu]

@kawambui

assuming his plot is located past king’ero as @Okiya said ama juja farm.
it rough cost is 250k plus 750k( @Wakanyama tunangoja breakdown) that equals to roughly one m.
lets say he produced 14 rental units as is the normal.
on the minimum those units might cost 2k so a month he can get 28k(minus the operation cost may an agency or a caretaker. so it will take 50 months to recoup his money.
on assumption of full occupancy and minus appreciation.
so do you think he would have gotten a better deal had he invested his million elsewhere

Alisema hapa ni unit mbili ama moja ya rental.

[wheelz]

50 months is an okay time period to break even on an appreciating asset investment. Standard time for most is 120 months.

[Wakanyama]

Millionaires like me never worries about Loose change, that’s peanuts to me,na sijatumia 750k,I budgeted big ndio isilale,

[Yollo]

@kawambui

assuming his plot is located past king’ero as @Okiya said ama juja farm.
it rough cost is 250k plus 750k( @Wakanyama tunangoja breakdown) that equals to roughly one m.
lets say he produced 14 rental units as is the normal.
on the minimum those units might cost 2k so a month he can get 28k(minus the operation cost may an agency or a caretaker. so it will take 50 months to recoup his money.
on assumption of full occupancy and minus appreciation.
so do you think he would have gotten a better deal had he invested his million elsewhere

For 14 units assuming each is a ‘singo’ of size 3x3 metres, that gives you a total area of 126m2. To get the approximate cost of construction with basic finishes, multiply 126X15000(cost/m2)=1.89mill

[kawambui]

@wheelz

50 months is an okay time period to break even on an appreciating asset investment. Standard time for most is 120 months.

when you get realistic 10 yrs is alot of time.
imagine currency devaluation in that period

[kawambui]

@Wakanyama

Millionaires like me never worries about Loose change, that’s peanuts to me,na sijatumia 750k,I budgeted big ndio isilale,

hapa hautusaidii boss.
help those who might wish to construct

[wheelz]

Currency devaluation & inflation can’t in any way overtake the value appreciation.

[Alchemist]

@kawambui

imagine currency devaluation in that period

We have inflation to take care of that. Also, it is better than having his cash under the mattress.

[Yollo]

@kawambui

when you get realistic 10 yrs is alot of time.
imagine currency devaluation in that period

Currency is designed to lose value over time so that the govt can always print more of it

[kawambui]

@Yollo

For 14 units assuming each is a ‘singo’ of size 3x3 metres, that gives you a total area of 126m2. To get the approximate cost of construction with basic finishes, multiply 126X15000(cost/m2)=1.89mill

i realized that cost per metre is a facade.
it differs from place to place and also the quality of the final product you wish to construct

[Yollo]

@kawambui

i realized that cost per metre is a facade.
it differs from place to place and also the quality of the final product you wish to construct

That’s y we say it’s approximate, so it should not deviate by +or - 10%

[mundu_mulosi]

@kawambui

when you get realistic 10 yrs is alot of time.
imagine currency devaluation in that period

The currency devaluation should go hand in hand with rent escalation.

[kawambui]

@wheelz

Currency devaluation & inflation can’t in any way overtake the value appreciation.

i concur but i had asked could he have gotten a better return in a shorter period of time.

@Alchemist

We have inflation to take care of that. Also, it is better than having his cash under the mattress.

@Yollo

Currency is designed to lose value over time so that the govt can always print more of it

[kawambui]

@Yollo

That’s y we say it’s approximate, so it should not deviate by +or - 10%

the funny thing is that it does.
for example a cdf classroom in laikipia and another in nyeri differs by a 100k. justifiable.
when you roof and slab it also differs alot

[Wakanyama]

@Yollo

That’s y we say it’s approximate, so it should not deviate by +or - 10%

It depends if you are using professional fundis ama cwaracwara Wa kuokota kijijini,

[system]

@wheelz

Currency devaluation & inflation can’t in any way overtake the value appreciation.

Tell that to the guys who were in the real-estate business in Zimbabwe during the meltdown and they will show you it can under some exceptional circumstances

[wheelz]

@kawambui

i concur but i had asked could he have gotten a better return in a shorter period of time.

Definitely. For small amounts of money, less than Kes. 50m, running a retail business will give you a higher return. But doing so locks down your money without optimising your opportunity cost. There’s more to business than returns.

Ideally, if his 1m was in cash, he should have leveraged it on a loan to access 5m. Then invest that.

[wheelz]

@jimmy_m

Tell that to the guys who were in the real-estate business in Zimbabwe during the meltdown and they will show you it can under some exceptional circumstances

But we are not talking about Zimbabwe. Tell that to the guys who build ghost cities in China.