I fear loan Ile deni Niko nayo ni ya SGR na si Mimi ni GoK took on my behalf.
That is a possibility if things continue going south
Lightskin kwani unaishi kenya gani? Huku mtaa rent ni 7-10k for bedsitters na 10-13k for 1 bedroom na ziko vacant. Unaona mpaka sahii poster imewekwa hapo “tiled, water available throughout” ndio tenants waingie. People who built rentals with tiny rooms during the housing boom are going to suffer. Alafu landlords are still in denial, they MUST reduce rent. Hakuna vile uchumi itakuwa mbaya na bado mtu anainsist na ridiculous rent, na options zimejaa.
The real estate sector has recorded its slowest quarterly growth in four years, giving weight to recent property market reports that have signalled a slump in demand despite increased supply of new housing units.
Fresh Kenya National Bureau of Statistics (KNBS) data, covering the third quarter ended September 2018, shows real estate recorded a growth of 5.8 per cent, the slowest since the 5.4 per cent registered in the fourth quarter of 2014.
[SIZE=7]Real estate growth[/SIZE]
Real estate growth
The sector posted a Q3 growth of 5.8 per cent, the lowest since the last quarter of 2014.
The growth rate is way lower than the four-year peak of 9.6 per cent recorded in the first quarter of 2016.
Market analysts link the sharp dip to uncertainties in approval laws, difficulty in accessing bank loans and a general slowdown in spending power among buyers.
Cytonn Investments senior manager for regional markets Johnson Denge said in an interview Wednesday that the market is experiencing subdued demand in the traditional drivers of real estate.
“Demand is both constrained by oversupply in some segments and also due to would-be-buyers experiencing very limited access to credit,” said Mr Denge.
“We have seen oversupply in areas such as office space, upper-limit residentials in select markets and also in retail space.
"Demand has slowed down and developers will have to look for new pockets of value, especially in the lower end of the market.”
Weak house sales plunge real estate to 4-year low - Business Daily
Kwenye naishi kuna vacants but sio hiyo market segment. Sijawahi ona place nyumba za below 15k zikiwa vacant unless ni moja moja. Hizo area za Kasarani kunakuwanga na vacant kweli??
The truth is that the average Kenyan is getting poorer by the day thanks to jubilee’s ridiculous economic policies. Mshahara ishaanza kuchelewa kama zile enzi za moi, today is 12th,bado sijalipa rent na hakuna mjinga ameniuliza swali, ata caretaker amekunja mkia kama guok ya @Makonika bandia. Chieth. I foresee that by 2022 most Kenyans will be dirt poor except, ofcourse, YOUR’S TRULY HIMUSELEFU.
Kaende kuendaaaa
Zangu ni one bedroom units, maji ya kanjo na ya kisima on separate taps in each room 10K. I will wait for some months ikibidi nitashusha bei. You are describing this. Hapa ni kwa aki na Wakanyama[ATTACH=full]237492[/ATTACH]
Wacha nidigress kidogo:
Kuna vile mimi huona kuinvest kwa rentals is a rich man’s game nikifanya hesabu vizuri, na sio juu ya capital. Juu ya economies of scale. If you have less than 30 million, the project will be too small to hire an agent, two watchmen, caretaker and to finance your errands to that property. But that is just my opinion.
Unaimagine kujenga rentals za 15 million zikupee 150k per month…that amount looks okay but ukifanya deductions utaona sio worth it. You will have to manage the property personally for it to make business sense and the property must be near you. Basically, when a real estate project is too small to cater for management expenses, it ceases being a passive investment and becomes your part-time job.
Landlord wa shop yangu moja siku hizi ni mpole sanaaaa. Kuna wakati ulikuwa unamuuliza mbona hakuna maji anakuambia “NAIROBI YOTE INA SHIDA YA MAJI!”. Alafu saa zote kuweka masharti mpya, na kusema mwenye anaona hawezi fuata ahame. Sahii power balance imeshift. 3 out of 5 shops ziko vacant, izo nyumba za juu ziko na around 60% occupancy. Sikuhizi ukicomplain tu kidogo anakuja kama risasi kusolve hio shida. March nilimwambia anipunguzie rent ama nimwachie duka yake niende kwa"ile pale" (bigger shop, lower rent). Ilibidi apunguze from 15k to 12k.
Rentals are retirement pet projects to people who have hustled/stole their entire lives and are looking for a ‘legacy’ to bequeath to their children etc. Wewe kijana ukijifanya mjanja uchukue loan ya 10M against your miserable salary ati ni ya kujenga rentals for ROI purposes utalilia kwa choo.
Real Estate is not for quick gain. The benefits stack up over the years. Its one of the few investments that does not require your physical presence therefore giving you time to focus on other matters and occasionally bailing you out when your high risk ventures are struggling. My personal experience
A pal gets 250k a month from his rentals in Eldoret and akitoa salary ya caretaker, watchman, agent fees, repair/maintenance and KRA, anaonanga ni bullshit anafanya considering that he sunk 20M. Akipata mtu anampatia 15 M atachukua haraka sana.
Mimi hata bila loan na 10 million siwezi jenga rentals. The project would be too small for the trouble. 10 million itakupea rent ya 100k/month. Sasa toa deductions utashangaa. Agent akule 10% i.e 10k. Utumie ngata ya kama 5k per month kwenda kuona “investment” yako. Ulipe caretaker 15k. Lipa security mmoja 10k each. Bado hujalipa garbage, land rates, wear and tear, lighting of common areas etc hizo zikule 5k ingine. By the time unamaliza kutoa unabaki na 50k from the original 100k you collected. Ukiwa na vacancy moja hata usitake jua vile hiyo hesabu inaharibika. As I say, rentals bila mita kama 30 in cash haikai investment poa. But it is just my opinion.
That is a fact, but don’t you think the project’s size matters? Juu kuna fixed costs lazima utaincur and if the project is too small, then those fixed costs take up a big percentage of your income.
Not entirely true. I rarely go to the sites, sometimes I stay away for a whole year. I have a caretaker who also doubles up as the agent, pay 15k and accomodation. He collects all payment receipts and delivers them to me every month. He ensures the place is clean and takes care of repairs.
This is my view also. Rentals zina fixed costs. So a project has to be big enough to justify those fixed costs. Huyu beshte yako akiweka gari mafuta kwenda huko na labda ni +3000cc atakuwa anaenda loss tu or the real return is too small to warrant that investment.
How far do you live from your property? I could learn a thing or two from an actual investor. Secondly, how do you deal with defaulters? How can you verify that the number of vacancies on the property is the same as that which your caretaker reports if you are away for one year??
That caretaker is one of the few good ones. Most will still find ways of stealing from you.
If the guy hasn’t visited the property for a year but relies on the caretaker’s receipts, what prevents the caretaker from declaring some vacancies and pocketing the rent?
The size does not matter. Location is the determinant here.You can put 30m in one location and reap a net of 50k a month. In a different location 15m gives you 3-4 times more. As Nachunisha skuma said rentals are largely for tucking away secure capital that will continue giving a small trickle beyond your lifetime. It’s also a passive income, big difference.