M2Random, good ‘research’ 
Jiulize kama the point of your entire life is to chase numbers(bigger house, better car, more money). If it is, you’re on the right path.
But you may end up like many of these rich old farts who only have money to their name(kids hate them, they don’t know how to relate with people because they’re always ‘looking out for number 1). Find out what’s important to you(na punguza looking for life stories on the internet) and work on that.
My two cents.
Money is good, very good na ndio Niko out kutafuta zingine…but it is not everything. A home is a personal space…
“I dont pay rent…” is a major middle class problem in Kenya. And the sharp investors who fore-saw it are now laughing all the way to the bank after selling plots in the middle of nowhere to the gullible middle class. Nothing justifies someone working in town building a house in Kitengela ama Kamulu. Its way way expensive in termss of time and logistics
I know that. At some point money stops being everything. Maybe past fifty. But for a man below 55, starting with a personal residence is tying down capital. A retiree might derive immense value from owning rather than renting because they live there 100% of the time and may require modifications etc. But anyone else who hasn’t reached retirement age would be buying a luxury in the name of a “home”.
But Billy could have other hustles, that give him mire than Jane’s 100k a month,
But i get the point you are trying to put across…
So can Jane. I am assuming that they have the same income, expenses and 15 million starting capital. The only difference is how they utilize the cash.
wewe m2random unafikirianga kila mtu ni kama wewe cares about money alone. personal homes are not for profit. they are for living. You can spend your whole life using everything for hire and complaining how expensive it is to build a home and achieve nothing else. right now you are not being a rational person. You are fundamentalist who thinks everyone should live for money and who thinks that one day you will accumulate enough and it will solve all other problems you have in life. problems like watching other men in bars. you need to get a life and realize money is just one problem. You have got to take on other problems head on. otherwise you will always be an average guy who thinks that everyone is having it rough because they are not in a mark X.
Unfortunately sometimes things don’t remain constant,you might lose your source of livelihood,become sick or incapacitated.
Still on the reality, this 50k isn’t a small amount of cash. Most people after building their pigsty, what comes to their mind is going full throttle to rentals. Of course, we are assuming that in your youth years you had bought some plots for speculations where by you can dispose
I think @M2Random makes a good case; yes, you might lose out on the prestige and ‘peace-of-mind’ of owning your own home, but if that is your only asset, are you that secure? If the family’s breadwinner die/becomes incapacitated, then doesn’t that hammer the family kabisa? Yes, they’ll be able to say ati they have a nice secure house, but will that help take care of the bills?
hii upuzi yako ya man below 25 man above 50 man below 30 man above 40 etc unatoa wapi? unafikiria maisha iko na terms ama? ama unadhani unajua how it feels to be everyone?
Read the hypothetical case again. Jane is using rental income from her property to pay for her personal residence rent, and keeping the difference. Hypothetically, Jane will ALWAYS afford to pay rent because she pays rent using rent. You are assuming that she used her money to party.
Heheh. Unakasirikia nani sasa. I knew that this post would rub some people like you the wrong way. I expected it. It is hard to change the mindset of a society that is hard-wired to think of a house as the ultimate investment.
This nigga has lost it. :D:D:D Don’t go full retard. Soma the first sentence of this thread.
100k, wow. Lakini you’re lucky where you stay homes appreciate in value.
I’ve struggled with this decision, when the time comes. Ideally, a home is where your kids will make childhood memories, but that comes at a high opportunity cost. Since financial freedom is my main goal, I feel like the money I save by renting can be invested for greater returns. If I want to pack up and leave for someplace else, it will be easier as well.
Boss as a man you need a space to where you retreat and make your moves in life even in your lowest moments. Those moments will come my brother where will it meet you?
People will cheat you, ati build 5 floors ya rentals first. Nobody will build a 5 floors building na hana kwake na kama wako very few. Having your own home makes you risk everything, wewe unatafta mboga na school fees tu. Add that if ulikua unalipa 50k every month.
But also in building homes you need to make calculations, there are bad deals, bad moves, but never a bad investment maybe a expensive investment.
My friend i have build 2 homes, 2 different areas, on the process of building a rentals not big but just 1 floor, all without a loan anywhere, na the satisfaction of building your home, is immense sai i know ata niwe kiwete, i have secured my future in a very good starting point. All this i wouldn’t achieve kama ningekua karadarada huku nje sijui unahama nyumba juu pesa imeongezeka.
Am not even 30 years. So let people be. My advice in one time in your life as a man you will build your own home, that’s a fact, when is that? Ukiwa 50’s. Do you know how your life will be that time? Do you know around 50 years you have less margin of error in life, why age, strength, maybe illness.
But sai u can make all errors na rectify them juu ukona time, you have strength you can move around looking for money, sai uko healthy. Wacha ushikwe na BP, sukari, cholesterol, arthritis ndio u will know you need rest in those years.
But why not have somethings in your life guaranteed, should you lose your job and you biz goes south, utalipa rent na nini? Shelter is a basic need, having your own somewhat gives you some kind of safety net, sasa kama Jane ameretire, na alijenga kwa riparian, assuming hana investment zingine nyumba atalipa na?
You have a point. Most decent owner occupied houses that I know of in Nairobi have a lower rate of return than the common rental units. While starting off, I would rather build a commercial unit while renting somewhere(usikae na tenants wako jameni). I would only build my pigstay once cash flow from rentals is stable.
However, this may not apply to everyone. Some people get very good mortgages from their employers that come with strings attached (buy don’t build!). Some people might also place a premium on having an own compound far away from town. Some other don’t care how much money they leave wakifa. All they care is good living now. Your mileage may vary!
You, just like others are assuming that Jane used the money to party. Jane is using rent to pay rent, so sijui mbona hamuelewi mnaniforce kurudia the same point 100 times. Read my hypothetical case again, very slowly uelewe. Jane has an investment that takes care of her rent and leaves her with excess money. So argument ya kusema 50k ni pesa mingi does not make sense juu either way she will always afford. In fact, when both people lose their job, Jane will still afford to live in her rented house that is similar to Billy’s, and she will have an extra 100k to support her. What will Billy do??? Billy will go broke and sell his house for 50 cents on the dollar because he has no source of income.
Nimerudia hii point mara kama 57. Why are you assuming that Jane used her money to party?? In the case nimeexplain she built rentals instead of a house. She has income of 150k from those rentals. Atatumia 50k na abaki na 100k za matumizi. If they both lose their jobs, Billy will go broke and sell his house.
It is extremely hard to show Kenyans how kuanza na pigsty is a dumb idea, because it challenges the common way of thinking.