they finally went to college, they
rarely came back to your Bundus.
This was your home. Not theirs.
The young at heart want to live
in the heart of the City where
the action is, not in some isolated
village. You too had missed your
church, college or school. but pure science. Whenever there
is a bubble, a burst is sure to
follow. Brace yourself for it. What
could hold it longer is the fact
that most properties were bought
or developed with hot money and
not loans. Such buyers can bear
the heat much longer.
You got tired of village life in
the city. The cost savings was a
mirage. You still paid for security,
water, sewerage, garbage and the
pain of sitting in traffic daily. If
only you could get an apartment
in the city at the same price, you
would think again. Huraaaaah.!
And that’s exactly what has just
happened. Otherwise we could have already
witnessed what happened in
Detroit US, where mortgage
holders handed their house keys
to banks and walked away.
Your Own Prison!
Those who went to the Bundus
did not spare a coin to build
their dream house. They built a
Runda V illa in the village only
to discover that your house
in the village has value for as
long as you are the one staying
there.
Try renting it out or selling it!
You will meet those buyers who
want the plot and not the house
and those who want the house
and not the plot.
Matching your individual taste
to the market is a gigantic task.
Moreover, the rental demand is at
its lowest. You actually become a
prisoner in your own home.
You must live there at all costs
or it either stays desolate or you
rent it out for peanuts. You may
as well hire some village wag to
stay there for you just to keep it
in fair shape. Property is location.
Stupid.
The Burst
It may not be there yet but it is
coming. This is not a prophecy
What would you do if the house
you bought five years ago at 18
million is now selling at 8 million
and looks much better than yours
while your outstanding mortgage
is still 17 million?
Evans Majeni is a businessman
selling Apple Products in Nairobi
and a director at Tahidi Homes
Limited. He enjoys stepping on big
toes and paying the price. You can
reach him via mail on this or related
issues at: [email protected].