Do everything to make sure that property stays in the family na kama ni kuuza make sure you end up with it the legal way…
Kama ni kikuyu,heri kuuza kabla mapanga zianze kufly
Yes, if possible.
Your choice should be determined by how the two of you were nurtured and relate. If your folks involved you in running and managing family ventures then you must have developed a work relationship with your sibling. This means you can create an agreement on who contributes what amount of capital to finish up the building and how to split the proceedings so that the capital is repaid.
If your folks didn’t involved you guys in managing family property then co-ownership may turn into a constant source of conflict thus you should sell and split the proceedings.
It’s good to note that, selling unfinished property puts you at a disadvantage hence you will probably sell it at price way below what its worth.
ION Pulling resources together with your family members on a business venture makes it easier to raise capital without having to pay obscene interest rates to banks, leverages on your networks and experiences thus easier to manage it.
Do not sell it now. The market is at the shitties state ever. We have an acre plot in karen (near the DP’s office) and the prices we are being given are just fucked up funny mpaka my step mom and sister dexided to hold in till things stabilise kiasi at least. Please, do not sell it now. Anything else but selling. Keep it for now. Trust me
Rent and split rent. Igai rítiedagio.
Sell and split the share. Best advice especially that he is tour sibling. To avoid conflicts
We have said it very many times before on this forum.
Blood and business does not mix. I once stayed in some rental property where the owner was a mzee and the siblings inherited the property after the old man passed.
Everything was okay for a while until one morning we woke up to letters saying one brother has appointed another agent to collect rent from them and all rent should be deposited with the new agent. Rent paid to the main agent will be considered unpaid. The other brother also sent us letters, please note that the matter has now gone to court and it is dictated that if you pay rent to the other realtor we will consider it unpaid. Tulihama mbio sana.
Turns out one of the siblings had taken a big loan for his businesses and the bank was on his tail and this property seemed to be the only salvation.
Sell the damn land and invest the proceeds in purchasing a shamba somewhere else ujenge polepole. You cannot place a price tag on peace of mind which this will guarantee you for the rest of your life
depends with family, but since you asking this question you ofcourse do not trust each other, then go ahead and split, but that would be fucking stupid given the nature of the project, and the expected income once the project is complete. Anyway, I am not a fan of disposing family property so here is my advice, call him for a meeting, not as a brother but as business partner, ask him what he plans to do with the property, if he says sell, then buy him out, at a fair market price, but if he wants to keep it and you don’t. then have him buy you out( which you will regret later on)
But in any case, COMMUNICATE, and if you guys decide to push through with the project, then agree to the finer details of how the project will be carried out. so, if you decide on completing it, set up a joint account, FUND THE ACCOUNT in equal measure and in FULL, hakuna ati ntaleta baadae, then agree on a project manager to complete the project. Hire a property manager to make deposits in the joint account. Always meet once every month to decide on what repairs to be done and they should always be debited from the joint account, not from either personal pockets.
Hivyo mtaenda mbali sana, but also agree that your spouses should not be involved in anyway in the running of the property, and also agree that the property shall not be charged as collateral to a loan, that said if your parents are still around, have them manage the project, but ensure the title of the land has been transfered for reason greed is human nature.
Communication is key, and always remind them its not a family business, but a partnership otherwise good luck, but for more consulting on running family business, kuja inbox.
With inherited property, what is your vision versus your sibling vision for the property? Unless that part is conclusively answered and agreed upon, it is better you split to avoid issues in future. Talking from experience
We inherited a school with my sister. She had no plans for the business. So I continued to manage it and we share agreed dividend year end. Otherwise, throughout the year, I only give general details of what we are doing there. It would have been foolish to sell the business. For the other properties, we ensured they were registered in our individual names. Nothing is joint. So not mix business and blood unless the vision is one and agreed on. One will want to develop the business, another will want cash from the business and that will bring chaos.
Family properties are usually very tricky matters
do not sell, have patience. Changa pesa maliza hiyo 5 story building then split be benefit but will only work if the two of you agree
Where I come from, you can not sell what you inherited… Because you are supposed to hand it down, the same way you received it… But what do I know… hehehe
From that standpoint, using it to generate income isn’t a bad idea as long as you find a formula for reaching an agreed investment decision, as well as sharing said income without acrimony…
Leveraging it or using it as security for a loan, would be out of the question for me…
To be honest Any income generated from said house would be better off preserved for handing down as well, so that you have enough to go round for the obviously increased numbers, since you all seem to be well to do…
This will guarantee loss of siblings forever… a world with siblings who hate you is worse than living solo in siberia for life…
Agree a comfortable joint savings plan mujenge pole pole mumalize… If your inheritance is from deceased parents/benefactor it will serve as a worthy monument to their memory…
Musikuwe na presha nayo afterall you didnt do shit to earn it why should you loose it due to unnecessary presha…
You seem not to have a cordial relationship with your siblings?.. and have no trust at all in improving it in the future…
When you get older you realise your siblings are the only genuine friends left… It is things done together that shape it…
Thank you all for your sound advice. After extensive research and talking it out with my siblings, we’ve decided selling will not be an option.
With that, recommendations on how/where to secure financing to complete the project will be much obliged. Also, would using it as security for a business loan be advisable?
I have a good relationship with my siblings. From my observation, it is mixing business with family that ruins that relationship. History has always demonstrated so. I favor division of inherited property any day because it alleviates potential future conflicts. BTW you don’t have to be in business with your siblings to maintain a cordial relationship. You’d have to be very naive to accept owning property jointly with anyone these days. There are a million ways that deal could go wrong. Also, people change, and even your siblings have the potential to change for worse. The guy/girl you make a deal with today will not be the same person 15 years from now. Unless you enjoy court cases and family disputes, nobody in their right mind would fail to see that big potential risk. In fact, there is no upside of owning property jointly with your siblings from a purely business perspective. But the downside is huge.