Home SK - Stocks, Property, Investment Chamas - Investment Groups BIZ - Small Business Soko - Market Wazua Life About Wazua
SIGN IN REGISTER
Monday, Sep 23, 2019
Investor
We’re investing funds for profit. Join us and wazua!
LATEST DISCUSSIONS
Equity Bank 2019 [24]
Eye on I&,M ... [120]
Kenya Airways...why ignore.. [13803]
Housing Finance: HFCK a diamond in the rough [1944]
10 steps to escaping poverty in Kenya [8]
Insightful take on Nairobi Real Estate [151]
Bamburi Cement FY18 [16]
Kenya Economy Watch [2228]
411 on dividend and AGM [717]
KenyaRe FY19 - FY23 (Both Inclusive) [411]
Kenya’s CDSC to launch short selling, day trading [74]
Putting up 2 Bedroom flats on a 1/8 acre [42]
KCB 2018 and Beyond [378]
KenGen HY 2019 [172]
Safaricom 2019/2020 [82]
 
Forum Jump








Welcome Guest Search | Active Topics | Log In

45 Pages«<4142434445>
Is Taking a Mortgage the WORST Decision Ever??
Gathige
#841 Posted : Tuesday, July 12, 2016 12:03:07 PM
Rank: Veteran


Joined: 3/29/2011
Posts: 2,077
mlennyma wrote:
newfarer wrote:
www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html

i consider a NPL invested in a property secure provided the lender keeps on check the duration of default



A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore.
"Things that matter most must never be at the mercy of things that matter least." Goethe
Wakanyugi
#842 Posted : Tuesday, July 12, 2016 12:35:23 PM
Rank: Veteran


Joined: 7/3/2007
Posts: 1,548
Impunity wrote:
Wakanyugi wrote:
There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).

This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).

If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?

I hope young Wazuans don't get taken in and forget that every story is only half a story at best.



For DECADES Bernard Madoff's PONZI was real and all the people in it thought they were not suckers...but they painfully realized they were actually hapless suckers...the only difference here is/was the time!

#Happy hunting.


Lesson number 1 from Strategy 101: 'Thou shalt not make important decisions on the basis of exceptions but rather on established patterns.'

The Madoff incident is not a pattern but an exception, an outlier within a multi trillion dollar global industry. Even the point that some of you may have had a nasty experience with mortgages does not establish dogma that the rest of us must follow. Everyone's case is different.

Again I hope young Wazua investors are digesting all this with a hefty dose of salt.
"The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
lochaz-index
#843 Posted : Wednesday, July 13, 2016 6:41:20 AM
Rank: Veteran


Joined: 9/18/2014
Posts: 970
Gathige wrote:
mlennyma wrote:
newfarer wrote:
www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html

i consider a NPL invested in a property secure provided the lender keeps on check the duration of default



A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore.

Exactly. More so, the sale and/or court process involved in realizing some of these securities is a total bog down...banks have to take the hit in their balance sheets way before such proceeds come on board.
The main purpose of the stock market is to make fools of as many people as possible.
iris
#844 Posted : Wednesday, July 13, 2016 11:32:18 AM
Rank: Member


Joined: 9/11/2014
Posts: 220
Location: Nairobi
Wakanyugi wrote:
There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).

This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).

If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?

I hope young Wazuans don't get taken in and forget that every story is only half a story at best.



I have been following this thread for education on the differences between risk takers (most entrepreneurs are a subset) and non-risk takers. Finance at even extortionist interest rates like 24% put to good use will bring in unimaginable gains, whereas patiently working on savings forever will probably make one comfortable but never very wealthy. I know someone is going to say this on mortgage, but the principle is just the same. It all depends on how you use it.
Siringi
#845 Posted : Wednesday, July 13, 2016 5:00:04 PM
Rank: Elder


Joined: 6/8/2013
Posts: 2,515
Swenani
#846 Posted : Wednesday, July 13, 2016 5:24:13 PM
Rank: User


Joined: 8/15/2013
Posts: 13,038
Location: Vacuum
For those who missed-stocks vs buying a house.
Poverty is the root of all evil
Obi 1 Kanobi
#847 Posted : Thursday, July 14, 2016 3:49:48 PM
Rank: Elder


Joined: 7/23/2008
Posts: 3,010
lochaz-index wrote:
Gathige wrote:
mlennyma wrote:
newfarer wrote:
www.businessdailyafrica.com/Real-estate-slowdown-leaves-banks-with-bad-loans/-/539552/3289432/-/131krs7/-/index.html

i consider a NPL invested in a property secure provided the lender keeps on check the duration of default



A NPL is just that- whether the security is gold or dust. The net realisable value of the security is what matters in the most adverse situations. You rarely see a gain on a bad debt realized but there are write-offs galore.

Exactly. More so, the sale and/or court process involved in realizing some of these securities is a total bog down...banks have to take the hit in their balance sheets way before such proceeds come on board.


If you follow best accounting practices and the prudential guidelines diligently, you will never get a surprise hit on your balancesheet. It is the greedy CEO's/CFO's and moron directors who cut corners and are shocked when reality strikes.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
washiku
#848 Posted : Thursday, July 21, 2016 5:14:35 PM
Rank: Chief


Joined: 5/9/2007
Posts: 13,075
Othelo
#849 Posted : Thursday, July 21, 2016 5:19:30 PM
Rank: User


Joined: 1/20/2014
Posts: 3,528
washiku wrote:

Wapi 'others' smile Kwani mortgage is only in Nairobi. very daft thinking for an investment firm ..... come see how Nakuru is expanding.
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
DBLyon
#850 Posted : Thursday, July 21, 2016 5:37:12 PM
Rank: Member


Joined: 5/28/2014
Posts: 149
Location: Nairobi
iris wrote:
Wakanyugi wrote:
There is a time I used to make quite a bit of money by reading the opinion of so called experts on Wazua and doing just the opposite (then I got caught but that is another story).

This thread brings back those memories, especially with some people writing here as if, ex Cathedra, (infallible like the Pope).

If mortgages were so bad, can someone explain how this became such a huge global industry? And how it is that a canon of real estate investment is OPM? (other peoples money). Surely they can't all be suckers?

I hope young Wazuans don't get taken in and forget that every story is only half a story at best.



I have been following this thread for education on the differences between risk takers (most entrepreneurs are a subset) and non-risk takers. Finance at even extortionist interest rates like 24% put to good use will bring in unimaginable gains, whereas patiently working on savings forever will probably make one comfortable but never very wealthy. I know someone is going to say this on mortgage, but the principle is just the same. It all depends on how you use it.


Hear hear.
When you live for others' opinions, you are dead.

- Carlos Slim Helu
DBLyon
#851 Posted : Thursday, July 21, 2016 5:38:53 PM
Rank: Member


Joined: 5/28/2014
Posts: 149
Location: Nairobi
Swenani
#852 Posted : Thursday, July 21, 2016 6:19:31 PM
Rank: User


Joined: 8/15/2013
Posts: 13,038
Location: Vacuum
iris
#853 Posted : Thursday, July 21, 2016 7:02:44 PM
Rank: Member


Joined: 9/11/2014
Posts: 220
Location: Nairobi
radio
#854 Posted : Thursday, July 21, 2016 9:26:45 PM
Rank: Veteran


Joined: 11/9/2009
Posts: 1,999
MaichBlack
#855 Posted : Friday, July 22, 2016 11:56:47 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,265

That is not value but price/cost.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Swenani
#856 Posted : Friday, July 22, 2016 12:05:49 PM
Rank: User


Joined: 8/15/2013
Posts: 13,038
Location: Vacuum
iris
#857 Posted : Friday, July 22, 2016 12:23:40 PM
Rank: Member


Joined: 9/11/2014
Posts: 220
Location: Nairobi


Valueless: "having no value; worthless". To my understanding that is not true of property in our context here. You are talking about an absence of value (zero) but the others (@radio, @DBLyon) are saying it is a variable not a constant, depending on what the buyer agrees to. So if you "exactly" mean zero, I respectively disagree. I think if property was valueless, then that is when we would have no bears and bulls.
Pesa Nane
#858 Posted : Friday, July 22, 2016 2:27:39 PM
Rank: Elder


Joined: 5/25/2012
Posts: 4,105
Location: 08c
dunkang
#859 Posted : Sunday, July 31, 2016 12:40:38 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,808
Location: -1.2107, 36.8831
According to the following "Experts", the bubble is here;
- Knight Franks
- Hass Consult (WAH!!!)
- Cytonn
- Central Bank

"the real estate sector recorded the highest increase in non-performing loans, by Sh5.9 billion or 42.3 per cent, according to a report by the Central Bank of Kenya"

"Prime rents for Nairobi fell 7.9 per cent in quarter one of 2016, according to the report, which pointed out that for the past four years, rents in Kenya’s capital have been declining."

"Land prices in Mlolongo and Athi River have fallen by 10 per cent and four per cent, respectively, signalling a decline in demand for housing."
Receive with simplicity everything that happens to you.” ― Rashi

sanity
#860 Posted : Sunday, July 31, 2016 2:31:33 PM
Rank: Member


Joined: 1/24/2011
Posts: 407
Location: Nairobi,Kenya
dunkang wrote:
According to the following "Experts", the bubble is here;
- Knight Franks
- Hass Consult (WAH!!!)
- Cytonn
- Central Bank

"the real estate sector recorded the highest increase in non-performing loans, by Sh5.9 billion or 42.3 per cent, according to a report by the Central Bank of Kenya"

"Prime rents for Nairobi fell 7.9 per cent in quarter one of 2016, according to the report, which pointed out that for the past four years, rents in Kenya’s capital have been declining."

"Land prices in Mlolongo and Athi River have fallen by 10 per cent and four per cent, respectively, signalling a decline in demand for housing."


Let them keep dreaming...
Hope is not a strategy
Users browsing this topic
Guest (2)
45 Pages«<4142434445>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Home | . .. Investor | .. . Groups | .. . SME | . . . Market | .. . Club SK | . ..... About Wazua | . .. Search | . ..Sitemap | . ..Support | . ..Disclaimer | . ..Privacy Policy | . ..Terms of Use | . .. Contact Us
Copyright © 2019 Wazua.co.ke. All Rights Reserved.