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What would you do?

Prometheus

Prometheus

Village Elder
#1
#1
So you have been saving for 4 years to come up with enough monies for a deposit. You've looked all over the papers and websites and finally found a place to buy. A 2 bedroom apartment for Kes. 4,5m. Good deal, right? Sure. You go for it.

Then slowly, cracks start to appear...


The bank is still collecting on the loan you took to pay off your mortgage balance. Threatening to list you on the CRB List if you default...
 
K

kurutu

Senior Villager
#2
#2
Prometheus said:
So you have been saving for 4 years to come up with enough monies for a deposit. You've looked all over the papers and websites and finally found a place to buy. A 2 bedroom apartment for Kes. 4,5m. Good deal, right? Sure. You go for it.

Then slowly, cracks start to appear...


The bank is still collecting on the loan you took to pay off your mortgage balance. Threatening to list you on the CRB List if you default...
Click to expand...
some cracks are not structure threatening, some are settlement cracks ,
 
Abba

Abba

Village Sponsor
#3
#3
Prometheus said:
So you have been saving for 4 years to come up with enough monies for a deposit. You've looked all over the papers and websites and finally found a place to buy. A 2 bedroom apartment for Kes. 4,5m. Good deal, right? Sure. You go for it.

Then slowly, cracks start to appear...


The bank is still collecting on the loan you took to pay off your mortgage balance. Threatening to list you on the CRB List if you default...
Click to expand...
kenya is a rip off country and people take pride in ripping each other off than strengthening each other. i don't find peace in buying already built apartments, if i do then there has to be an insurance to that effect against any calamity be it floods , construction errors and any other thing .

having said that , i think she has to count it as her losses and let the bank screw her CBR report. let them take the apt and sell it and recover their money. There is no other way to solve this .
 
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jagger_snr

jagger_snr

Village Sponsor
#6
#6
kurutu said:
some cracks are not structure threatening, some are settlement cracks ,
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The only gap or crevice allowed in construction is the expansion/contraction gap and mostly it's never left open..instead it should be filled up with materials such as silicon, stylofoam, polystyrene or others of this form.

Likely settlement is hazardous and should be avoided by providing a stable foundation/base.

According to that vid.. The whole block is a waste as a result of settlement. Yea I said it... WASTE!
 
M2Random

M2Random

Village Sponsor
#7
#7
Polmos said:
Why do people buy houses in/on flats/apartments.There is no freedom of doing anything there regarding compound
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I also never understand the stupidity of buying an apartment when the same money can be used to put up a bungalow with a big compound. Developers are certainly having a field day with such fools. The profit margin on apartments is normally more than 100% meaning that buyers pay more than twice the total cost of construction. Additionally, these "middle class" buyers are charged high service charges by the management companies. I would rather rent an apartment than buy, any day.
 
Abba

Abba

Village Sponsor
#9
#9
It's Le Scumbag said:
I saw a former colleague on telly complaining about these apartments. One of the best guys I know. But he got screwed...
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thats kenya my friend . i'm always wary on any deal. there has to be a rot somewhere. Question;where were all the busy bodies involved in construction of the houses? where was the county / government civil engineers who approved every step of the construction? these are people who should have their licenses revoked. That's the only way to learn, but as long as you have these people still approving other projects then same thing will happen. Let me tell you a story ;

I bought a house in rongai early 2000 just before i quit banking field. later a crack appeared on the house. it was a small crack.I called my friend who did civil engineering to come and inspect the house. He told me foundation iko shida kubwa sana, i should flee before its too late. He said the developer took too many short-cuts while building the house. So right before i quit, i disposed it to an another banker who thought it was as good deal( God forgive me). i went to see that house last year after 16yrs and i was told the house collapsed kitambo. Then owner had to quit the bank because he couldn't pay a mortgage for a collapsed house.He grabbed a bullhorn and told the bank to screw themselves and left for Australia .

Here is the thing:they screw you once, screw them twice. Don't be comfortable with what has been built for you, build your own.
 
Prometheus

Prometheus

Village Elder
#11
#11
Abba said:
thats kenya my friend . i'm always wary on any deal. there has to be a rot somewhere. Question;where were all the busy bodies involved in construction of the houses? where was the county / government civil engineers who approved every step of the construction? these are people who should have their licenses revoked. That's the only way to learn, but as long as you have these people still approving other projects then same thing will happen. Let me tell you a story ;

I bought a house in rongai early 2000 just before i quit banking field. later a crack appeared on the house. it was a small crack.I called my friend who did civil engineering to come and inspect the house. He told me foundation iko shida kubwa sana, i should flee before its too late. He said the developer took too many short-cuts while building the house. So right before i quit, i disposed it to an another banker who thought it was as good deal( God forgive me). i went to see that house last year after 16yrs and i was told the house collapsed kitambo. Then owner had to quit the bank because he couldn't pay a mortgage for a collapsed house.He grabbed a bullhorn and told the bank to screw themselves and left for Australia .

Here is the thing:they screw you once, screw them twice. Don't be comfortable with what has been built for you, build your own.
Click to expand...
:D:D:D:D:D Why did you do that to a poor soul? Are there no other measures for recourse? Insurance then wait (nudge) for it to collapse?
 
Abba

Abba

Village Sponsor
#12
#12
Prometheus said:
Most people buying houses in Kenya are not first time home owners. They are investors, buying to rent out the apartment.
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i did the math one time i don't know on what forum , on how its a bad deal to buy a house so as to rent and yet you did not participate in the structural set up of the building on initial stages . its all speculation my friend. just buying for speculative purposes. it might work for you in a short run but in a long run you will feel the pinch .
 
P

Polmos

Village Elder
#14
#14
Abba said:
thats kenya my friend . i'm always wary on any deal. there has to be a rot somewhere. Question;where were all the busy bodies involved in construction of the houses? where was the county / government civil engineers who approved every step of the construction? these are people who should have their licenses revoked. That's the only way to learn, but as long as you have these people still approving other projects then same thing will happen. Let me tell you a story ;

I bought a house in rongai early 2000 just before i quit banking field. later a crack appeared on the house. it was a small crack.I called my friend who did civil engineering to come and inspect the house. He told me foundation iko shida kubwa sana, i should flee before its too late. He said the developer took too many short-cuts while building the house. So right before i quit, i disposed it to an another banker who thought it was as good deal( God forgive me). i went to see that house last year after 16yrs and i was told the house collapsed kitambo. Then owner had to quit the bank because he couldn't pay a mortgage for a collapsed house.He grabbed a bullhorn and told the bank to screw themselves and left for Australia .

Here is the thing:they screw you once, screw them twice. Don't be comfortable with what has been built for you, build your own.
Click to expand...
Mortgages and loans.Those are two things i will not involve myself in.
 
Prometheus

Prometheus

Village Elder
#15
#15
Abba said:
i did the math one time i don't know on what forum , on how its a bad deal to buy a house so as to rent and yet you did not participate in the structural set up of the building on initial stages . its all speculation my friend. just buying for speculative purposes. it might work for you in a short run but in a long run you will feel the pinch .
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I'm currently looking at an apartment to buy. Current value Kes. 13,5m. Rent at 75k. Deposit of Kes. 3m. I'm getting a good deal on the interest rate so I'm thinking of spreading it over 10 years. So looking at paying 70k a month on the amortization up and above the rent. At the end of the 10 years, the house will have cost me Kes. 11,4m. (8.4m from the monthly 70k repayment, 3m for the deposit). So, I've already made money from my tenant(s). Bear in mind this is assuming I don't increase the rents in 10years. (of course rent has to increase to keep up with inflation)

Revenue stream 2 comes from the property revaluation at that point, say Kes. 20m. I may choose to charge the title again for 80% of the value, approx 16m, and use this as downpayment for 3 different apartments. Then I'll have 4 apartments that require 300k payment to the bank....
 
Abba

Abba

Village Sponsor
#17
#17
Prometheus said:
I'm currently looking at an apartment to buy. Current value Kes. 13,5m. Rent at 75k. Deposit of Kes. 3m. I'm getting a good deal on the interest rate so I'm thinking of spreading it over 10 years. So looking at paying 70k a month on the amortization up and above the rent. At the end of the 10 years, the house will have cost me Kes. 11,4m. (8.4m from the monthly 70k repayment, 3m for the deposit). So, I've already made money from my tenant(s). Bear in mind this is assuming I don't increase the rents in 10years. (of course rent has to increase to keep up with inflation)

Revenue stream 2 comes from the property revaluation at that point, say Kes. 20m. I may choose to charge the title again for 80% of the value, approx 16m, and use this as downpayment for 3 different apartments. Then I'll have 4 apartments that require 300k payment to the bank....
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good math though. what if you bought an apartment in such a place like where you posted the video? are you sure that nothing impromptu can come up? do you have adequate insurance for the same?anyway if it works for you then be it and im proud of your game. for me i keep my cards very very close to my chest. My game is rather different,I play along with the builders. I get my cut and i go, no strings attached and no falling in love . anyway i get you
 
Prometheus

Prometheus

Village Elder
#20
#20
Abba said:
good math though. what if you bought an apartment in such a place like where you posted the video? are you sure that nothing impromptu can come up? do you have adequate insurance for the same?
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Hence the finance. Banks have to insure against loans. Property & land owners are protected by the land act on that foreclosures should not result in the owner losing the deposits already paid to the financier. In the event of collapse, insurance should pay and claim from the developer. Developer in turn should have had a proper contract tying down the contractor to such defects. Contractor in turn should provide warranties on the concrete source.

But in the case above, I highly suspect the developer cut corners to put these apartments up for cheap. So, Shelter Afrique is fucked.
 
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