On Sun, Mar 13, 2011 at 3:11 PM, Eunice Wa <tewafula@gmail.com> wrote:
Real Estate is great investment, but not for quick returns, average RoI for a house is 120-200 months depending on area and initial costs At times as Gichingiri mentions, rent may be cheaper but for those who can wait purchase is rewarding as you will own it eventually and it will definately appreciate
There is nothing definite. The well known script reads something like this -- 1 some people (i.e. "the depositor") have money, so they keep it in the banks 2 banks cannot easily lend to retail operations, a hotel, a bar, a mall etc. 3 but banks can lend to a property developer. 4 property developers borrow from the (same) bank and buy (and hold) lots of land. 5 property developers build property on the land 6 the depositor "borrows" from the bank and buys a house Note points 1, 4 & 6 -- and 4 & 6 in particular ...the builder is "borrowing" (in financial terms "leveraging" ) to buy land and develop property ...and you are "borrowing" to buy from the builder ... So clearly there is a vested interest in keeping the prices high because if it comes down all three -- the bank, the property developer and the people keeping money in the bank will lose. Of course -- when the price does fall (as it has happened everywhere else during these price cycles ) .... the emperor wont have any clothes left.