You can apply the same model in any town not just Nairobi. Investing in country side is something you do after you have sorted small problems. It is retrogressive to build a big home in shags. You will be moving your kids backwards instead of forwards. The point of life is to ensure your kids are left better than ur parents left u. If your parents for example were born in shagz and came to Nairobi, you have an obligation to your children to own property first in Nairobi before u think of building in shagz. Then your kids should do better than you by owning in a better place than u did. Maybe if u owned in Ruiru, they should own in Runda. And so on, do not take the next generation backwards because of fear of PEV and such things.You should progress and move a step above where your parents started. But if your parents were in shagz, then you remain the same shagz…you have let them down. Be progressive.
I totally understand your point but why have we bought into the lie that Nairobi city life and the associated rat-race is better than shagz? Is it even sustainable for our bulging, young population and the environment? Speaking for myself, I will be happy if my 2 kids can inherit the huge piece of land we have invested in peaceful Nyandarua county where there’s a stream that cuts across and the land is very fertile. That’s our little heaven on earth. It is my prayer that they never have to pay rent or be anybody’s employee. We will teach them entrepreneurship and technical life skills.
Wueh!, entrepreneurship, I learnt, the hard way, is not teachable…
you either have it or you don’t… its a lifestyle… you go through feasts and famines, with a happy go lucky attitude,… look every gift horses in their mouths… learn to listen to non verbal communications and what has been left unstated… You got to have the temperament of facing debts, deadlines, creditors, pay salaries to lazy non performing workers, and snake oil merchants and come out composed and make it seem easy…
you have to learn to sell something you don’t even believe in yourself, and learn to forgive and forget and travel light with no ego whatsoever…
and most of those lessons are not things you leave a salaried job to go teach, the kids learn by your actions…
entrepreneurship is not for the faint hearted… watu wakule mshahara kwa amani… its the easier path…
Yes hapa umeongea kama watu kumi as a salaries person all my adult life i can relate
In my line of work, my boss takes money from me if I have a bad week. It requires a very thick skin like a rhino and exceptional risk management skills to succeed. Most salaried people can’t handle the knock-downs. My employer is Mr. Market.
As Azor amesema… There is no formula to life bana…
Picture this… Two brothers…
Elder bro had an SME… has a revenue of 1 million per month.
-Total expenses are at 80%.
Small brother is in NGO, takes home ksh. 200,000 per month.
-but the Elder bro has to keep re-investing into the business for growth… And mostly ends up without a salary… (as he’s avoiding expensive loans)
-small brother has plots, a nice house, healthy savings, since he’s got disposable income.
If things were to go south, who will be better off…
Life has no formula.
You’re very naive.
Just because somebody lives in Runda doesn’t mean he/she is enjoying a better life than somebody living in a farm in ushago.
I spent most of my childhood in a rural farm and one of my best memories were made in that rural farm. There was lots of space to play, climb trees, go fishing, keep domestic animals with no restrictions etc.
Nairobi is NOT everything.
I admire how wazungus live. Most families in rural areas have farms and ranches that have been passed down for generations.
Like if you go to Scotland, you will find most families in rural areas have a diary farm or a whisky distillery.
Like the great great great grandchildren of Johhny Walker are still involved in the Johny Walker whisky business.
Like I have said, the businesses are usually passed down for generations.
Inafika time flani mzae anakuiita kando anakuambia “This family home/business was passed down to me by my father, and the father before him going down for generations. This land has been in our family since the 1615. Take care of it and pass it down to your children.”
Such people who pass down generational wealth, don’t change the last name of their descendants. Mpaka saa hii great great great grandchildren wa Johny Walker bado wanaitwa “Walker” jina ya mwisho.
This is a very educative thread, but @uzito has brought in some of his biases (:)) in life into the equation. The biggest danger i would think is not to invest at all. As long as you are doing it, you are in the right direction. By this i mean you can start with some rental units then later build your home. It makes sense for someone who is hugely concerned about his financial security. Its also possible to start with your own home then build some rentals for cashflow. The end result is the same though the routes may be differing slightly. Each route has its pros and cons.
On the other hand someone else in employment would think that the best way to safeguard their financial future is to start some type of a business. This will help then reduce dependency on the payslip in their journey through life. The business proceeds will be used to build the home and other RE investments. The general direction for all is towards financial freedom.
This is thread deserves to be pinned for posterity. Thanks to one @uzito
I agree it may have my biases. But I was also talking about eventual financial freedom after retirement. Currently, in Kenya, unlike other countries, one needs a house to live in and rental income at the time they retire in order to be comfortable. Plus the other 2 conditions I mentioned. As long as in the end you have all 4 conditions the end justifies whichever means one takes. Relying on business income is ok when young but business is up and down so for retirement one cannot fully rely on business.
I agree. Nairob is not everything IF you grew up in ushago. For many of us, we have been born and raised in Nairobi…we do not share the ushago experience you have. Therefore, Nairobi becomes our baseline on how we compare and judge other areas. But if you are comfortable in ushago then you can also do the same in ushago…the principle remains the same whether in ushago or any town…for you to be comfortable in retirement, you need to own a house to live in and a house to rent and that does not matter whether in ushago or a town. All other sources of income carry high risk in retirement.
If things go south, you are better off with an apartment you are renting than plots. If things are south, you need to be liquid. You do not want to be in a corner where you are selling off your land at throw away prices because you urgently need cash. It is ok to have plots, but at the minimum, have a house to live in and a house giving you rent. And that will apply for both brothers, it does not matter what they do that is the minimum retirement required for financial stability in Kenya after retirement.
It might make you happy for them to inherit in Nyandarua, but you will be happier if they got an opportunity to do better than you did by owning something somewhere else and having Nyandarua as a fallback plan. Your job as a parent is to setup the fallback plan. It is their job to take it to the next level…meaning kukiumana watarudi Nyandarua but they should strive to expand and diversify beyond Nyandarua. There is a reason people leave their shagz to come for things like ICU and HDU treatment in Nairobi. Cities are a rat race but you want your kids to know their way around, if you can make it in Nairobi, you can make it anywhere in Kenya.
Most Wazungus live in cities and towns . The Scotland that you are citing has an urbanization rate of 83 %. That’s means that 83 % of the population don’t have those farms that you are talking about.
My mantra has always been this.
If employed, focus first on kujenga flats or something that gives you passive income.
If in business start with your residential house.
T
True…I love my shagz Mbeere with the dryness,mugukaring etc but since i was not raised there but in Nairobi i cant imagine living there …fulltime. However i do like to take the kids once in a while to see their roots
With UOTE=“uzito, post: 2912107, member: 8611”]It might make you happy for them to inherit in Nyandarua, but you will be happier if they got an opportunity to do better than you did by owning something somewhere else and having Nyandarua as a fallback plan. Your job as a parent is to setup the fallback plan. It is their job to take it to the next level…meaning kukiumana watarudi Nyandarua but they should strive to expand and diversify beyond Nyandarua. There is a reason people leave their shagz to come for things like ICU and HDU treatment in Nairobi. Cities are a rat race but you want your kids to know their way around, if you can make it in Nairobi, you can make it anywhere in Kenya.
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With remote working taking over why should i stick to Nairobi? And when it comes to retirement, savings matter a lot. Jenga nyumba ocha and work frim home. Eat fresh food from farm, ride motorcycle on empty roads and save up 80% of your earnings. Sweet life
With remote working taking over why should i stick to Nairobi? And when it comes to retirement, savings matter a lot. Jenga nyumba ocha and work frim home. Eat fresh food from farm, ride motorcycle on empty roads and save up 80% of your earnings. Sweet life
Savings can be depleted easily. The only way is steady rental income. Life is expensive in retirement, your medical bills go up significantly, insurance is almost beyond reach for most retirees because it is priced for an old person who is high risk. Plus you are not working so your ability to earn working income is low.
Yes i agree. Maybe i buy a bungalow in thise gated estates in the outskirts then rent it out
Exciting info to read. If I should choose between buying or building my house for sure, I will select buying. Why? The process of building a house, in general, is very complex. You have to find an excellent company of builders to make your work quality and fast. If you want a beautiful design in the house you also have to find an outstanding designer who is also very expensive, you have to choose the furniture, etc. In the end, you end up with the same money as if you were buying a house. For example, I found a company on the internet with houses and lots for sale in the Philippines. The houses are not expensive, but the place where they are located and the quality is terrific. The conditions and design have met all my standards. And because there are such companies, I will always choose to buy the house rather than build it.
Pressure tupu tu ndio unapatia talkers.Do you know each of us have different sources of income?
Did you care to consider that