These are American statistics. I wonder if they apply locally.
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Yes it might apply locally but major reasons being foregone opportunity cost of the cash used to build he home that could have been invested in some cashflow bringing venture
Simple solution: invest in commercial properties and use the profit from there to rent a house to stay in. Hii story ya kubuy nyumba ya kukaa it’s just an emotional purchase
At time, the monthly cost of mortgage, and that of rent are almost equal or even higher. The most genuine concern for most parents will be poor quality of school districts ( when our son enrolls in school, we will have to move to an ISD [Independent School District] that will suit our needs.
The other one is house depreciating , hizi nyumba za mbao banaa, after paying mortgage for 30yrs, all you will be left with is a piece of junk. Trick is after 10 to 15yrs, sell your house and move
Top GUN this is an AWESOME thread youve started here…but i think i need to annalyse myself keenly to ensure am not consoling myself for not buying a plot and building a home like everyone is doing…
Middle to lower income housing for rent
Where is this property prices are depreciating?
Important point to note:
“All of this isn’t to say that millennials are, as a generation, inherently unfit to own homes,” the researchers conclude, but “rather, being a young homeowner is stressful.”
Mimi tu chenye najua ni kwamba I’m hustling hard to have my own place so that I can’t pay rent, no matter what excuse you’ll always give. The cost of building a commercial building that will guarantee a stable income or anything that can at least sustain you is quite higher than setting up that three bedroom mansion. And supposed you’ll argue that there’s always an alternative, then you should understand that you either suceed or fail in that business, with the current situation, we both know very well what happens next. Peronally, that’s a gamble game am not willing to take, I’ll consider such when am in my own crib with it’s own TV room and recliner seats watching shit on my 86" 8K LG TV.
This argument of investing in something else before purchasing a house only works in regions such as US where the cost of acquiring a decent house is the same as putting up a proper business. But apa Kenya, 2M is enough to set up a decent mansion with electricity and proper supply of water. Biashara zitakam baadae but first have a proper place over your roof, you’re not assured of proper income from the business, but bills will always be there, and you’llneed a roof over your head. Ata na dawa akuna siku yenye getting your own house is a bad idea.
Judging by the way you rigorously defend this topic, I think you have deep regrets that you once forgo the opportunity to build yourself a crib and you’re just trying to console yourself. Pesa za writing ulipeleka wapi @Azor Ahai ??
alinunua Toyota Mark X anatusumbua sana huko telegram na jina @Maliyaamungu
Kubuy na kujenga? I go for kujenga,you create your own space hata ukitaka jikoni kubwa kushinda choo thats your choice . But first,kua na pesa ya kujenga hata nyumba nusu atleast,bank wachana nao
Achana na hawa armchair analysts, they dont know the peace of mind that comes with your own house. Ati I invest in rentals blabla, alafu jioni nirudi in a rental house kusumbuana na watu wanachunisha keja na ampex saa nane usiku wakivuta bangi. Kwani pesa ni za nini? Si to live a good life. Id prefer to live in a good quiet environment and be broke, rather than have some few shillings in my account but living with tenants in a flat I own.
By the way this logic of renting close to my workplace makes sense to m’e other than kujenga huko outskirts then i see my kids almost never because of traffic…therefore having a source of income first/ rentals then rent close to work/ kids school makes sense to m’e.Then once the kids are older/ go to boarding/college i can build further away.I have seen guys build but usiku kungangana na insecurity/ or spend mad hours in traffic to and from work.Another better way is maybe buy into a gated community but areas i would want are too pricey for me.But maneno ya my own compound then usiku naskia unsafe siwesmake…my two cents.
I think there is no size that fits all in this issue of building/buying vs renting…There are many factors that are unique to each case…but for me I am a chasflow first guy…There is no way am prioritizing building/buying my own crib at the expense of jeopardizing my cashflow goals by tying humongous amount of cash on house to live in…Also I agree with you,renting to a convinient and safe place is better than building in far flung insecure areas
Kwani lazima urent kwa flats? Ama hujui hata kwa gated estates houses get rented out? You get exactly the same thing ungejijengea, maybe even better.
There is some truth in this. Odds are, like most people here, you are not wealthy enough to do both. So, at the end of the day, you have to start with one. You have limited resources (money), and have to make a choice whether to build a house or boost your cashflow…coz a house is a consumption item. A house is a wonderful thing to have, but should it rank that highly in most people’s priorities? I don’t think so.
My emphasis on cashflow first does not emanate from my hatred for houses. It arises from the reality that most people don’t have enough funds to do both. I don’t hate owning a house. It just ranks lower than rentals in my list of priorities. Most people don’t hate rentals either. They just prioritize a consumption item (house), over a cashflow assets (rentals). I hold the opposite view. That’s all.
Ile dust niliona after the IMF SAPs za late 90s na early 2000s my old man and his colleagues kukua retrenched in their 40s , building rentals or having a serious fallback biz is a better idea than building/buying a residential house .
Only those who had rental properties survived .Wale walikua na mansions na three cars kwa garage had to sell their houses and downgrade lifestyles kinyama .
Lakini Kama nyumba ni firesale nunua .Yani the deal is too good to pass up .That’s what I did .
My advice though inakuanga hivi
If employed -Start with rentals
If in business -Start with your residential house
A 3/4 bedroom + SQ in a decent gated estate within a 30KM radius from Archives will set you back 15-20M. That same house will cost you 50k-60k to rent. 15M-20M is a shit ton of money enough to complete a decent rentals project.
Hawa watu unaona wakisema build cheap houses, it makes sense initially. Unaona jamaa amenunua plot in a crime infested area without amenities in the middle of nowhere, just because anataka kuondokea landlord. After two years he has 100 reasons to move, and his life savings are tied up in a house he can hardly rent to others.
If I was to buy a house, it would be in a decent gated estate - minimum. Since such houses are expensive (as you said), I would rather invest that money and live in that gated estate as a tenant.
Most people think that a house is an asset. It isn’t if you live in it. And if you rent it out, it has an extremely low ROI. That being said, if a deal is a steal, it makes economic sense to buy it. Generally, steep bargains are rare in the property market.
There is only one constant in life - the need for money. With money (cashflow), you can rent. Accommodation is just one expense in a long list of expenses that any person must have for survival and comfortable living. What a person with limited resources (most people) need is not a house, but a source of money. Then they can use that money to meet other needs.
Rentals/any other source of cashflow, are the goose that lays golden eggs. Houses/accommodation is a golden egg. Would you buy the goose or the egg? Buying/building a decent house is equivalent to buying the egg instead of the goose.
Valid points @Top-Gun , but sense a bit of scarcity mentality, one can build that home and still build other cashflow bringing investments. Kwani the money that money that you invest in that house is the only money you will ever have? Kwanza have you done the math of doing rentals for let us say K Shs 5M, how much you will be earning from them, taking into account usual vacancies etc. https://biznakenya.com/cost-of-building-flats-in-kenya/
Jenga nyumba, endelea kutafuta pesa. You can as well put that house on sale and make a quick margin out of it, and go build another, and put it on sale, and repeat. Rentals pia can be an “emotional investment” that will take you forever to recoup the cash, speaking from my old man’s experience. Please check this http://www.kuzabiashara.co.ke/blog/real-quagmire/ .