On Tue, Nov 30, 2010 at 9:15 AM, aki
<aki275@gmail.com> wrote:
@Peter, based on your expert opinion, we still do not have any answers to the steep price rises and the high demand buyouts on such inflated prices. Bottomline is the sector needs serious investigations and implementations of anti-abuse measures. KRA for example needs to implement a system that requires buyers to declare source of funds before the land registry can act on the sale, something like a clearance certificate which also covers banks/developers who may be hiding the "cash economy".
Aki;
Inflation when computed with 2003 as the base, before the prices surged in 2007, will reflect a 35% rate. The rate was revised to a "friendly" base 2010, meaning we are living in tough times since even at a "friendly" base year, inflation is higher than most developed nations that are going through hard times.
Im privy to the fact that diaspora might be behind this whole phenomenon, and its purely speculative since they can no longer invest in developed markets as they are showing marked volatility in prices. I have a couple of friends in the US who have invested in property in .KE over the last year or so. From my dealings in the industry, I have heard enquiries coming in from all corners of the world mostly from Europe, USA and the Far East. So I believe the purchases are based on ignorance. There's a realtor that's even selling "premium" beach front malindi plots in the European markets at upto Kes. 100 million an acre. And they are selling. Mike Sonko was in the news the other day selling a plot in North Coast at 85 Million, so yote yawezekana.
Kenya is being purchased, we have to be part of the buyers and not whiners.
Peter