I think you should consider that in when you have rental property despite earning an average of 6% their also capital appreciation of the land the property is sitting on at average of 20% and also its has an hedge against inflation since the cost of building a property now will be totally different from what it will cost you if you build in 5 years from now for instance. An MFF of return of 15% is subjected to 15% withholding tax this reduces the actual return to 12 %
Capital appreciation looks good when calculating net worth on paper, but isn't of much help when cash flow is the priority. It can only be accessed when one sells that asset (and hopefully it will not be due to an emergency, otherwise they will be forced to dispose of it at less than market value), or borrows against it. There's a lot of value in 12% at hand today vs maybe 20% one day if I have enough time to sell at the right price.
@@jekokello2039That's the theory but one class of high risk investments in Kenya ie stock market also have a very low return. Even negative returns for long periods of time.
The issue with that usually is for many people that village castle is all they own. They will sacrifice greatly and pour all their money into building it or paying off a loan to build it (while renting in the city), but don't have anything aside from their job or business putting money into their pocket. They also don't have 6 months to a year of living expenses saved in an emergency fund, so heaven forbid if they have an emergency, they will have to get a loan or borrow from people around them. Or sell that village house. If one has the financial muscle to have a mansion in the village (with all the expenses that go along with it) and still live a full life and be liquid enough to deal with emergencies, then there's no problem building a house that is lived in for barely 2 months in the year. But for most regular people with limited finances, it is not the most prudent financial move and is a pretty steep price to pay for pride and sentiment.
Could you do a video about the debt distress exchange which wanjigi is constantly fear mongering about? It happened in Ghana yes, can it happen in Kenya or is it just fear mongering
Tell us how money market fund makes money by themselves to boost our confidence and trust in them because huge returns have questions on whether a business makes money
@@denniskisule8131 money market funds make most of their money through investing in treasury bills and bonds, and a smaller amount through corporate paper. So to determine if the advertised gains are legit, check the prevailing returns on those - the information is freely available in the public domain. Money market fund yields will usually be equal to or a few % below that of the assets they invest in.
Good question. Commercial paper investment earns between 18 and 25%. Bonds earn between 16 and 18%. and Fixed deposits earn between 16 and 19%. That's how these MMFs make money. They invest in these instruments.
We thank God, the government is here to stay. But even if it does, we will still have an economy. The incoming government will likely honor the country's financial obligations.
The government that takes over may maintain the current economic structure and debt obligation if they don't suspend the Constitution. It is highly unlikely that the incoming government will default the country's debt.
Land appreciates with time but the challenge is liquidating it. So, while land is good, I recommend investing in it after building other income-generating assets like bonds, MMfs, and REITS.
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I think you should consider that in when you have rental property despite earning an average of 6% their also capital appreciation of the land the property is sitting on at average of 20% and also its has an hedge against inflation since the cost of building a property now will be totally different from what it will cost you if you build in 5 years from now for instance. An MFF of return of 15% is subjected to 15% withholding tax this reduces the actual return to 12 %
Capital appreciation looks good when calculating net worth on paper, but isn't of much help when cash flow is the priority. It can only be accessed when one sells that asset (and hopefully it will not be due to an emergency, otherwise they will be forced to dispose of it at less than market value), or borrows against it. There's a lot of value in 12% at hand today vs maybe 20% one day if I have enough time to sell at the right price.
You're right
Sir, This is a brilliant discussion .Subscribed, keep educating us!.
True. Simple mathematics shows me that investing in IFB treasury gives you much more return than a rental unit costing the same
You should avoid Kenya in first place. Thanks
A good one
So all the 50M+ should leave?😂...
😂😂😂
@@gw7768 50 million want to leave but nobody wants them. Thanks
@@gw7768 no, the 1M or so people who are doing well and have managed to prosper here, including about 3000 dollar millionaires, can stay 😅
Very insightful!!
Truly good financial advise.
Good one bro
Food is expensive & cost of living keeps on going up. If I buy acres of agricultural land for farming, is it a dead investment?
If you have 5 pairs of shoes, chances are high you only like and frequently use 1or 2 pairs the rest is for show off
yeah, true. It is disrespecting money, if you ask me.
umaskini ni mbaya sana, we need more than 20 pairs,more than much clothings,land,houses and this is life,life cares less on profits.
Thank you Jekoniah, very useful info.
Liquidity / Return in investments is directly proportinate to Risk. Ahealthy balance risk diet😎
I agree with you.
@@jekokello2039That's the theory but one class of high risk investments in Kenya ie stock market also have a very low return. Even negative returns for long periods of time.
Why can't I build a mansionette in the village if I want it? Not everything is meant to be an investment
Yes. As much as financial arithmetic is important, sentiment value also has its place in life.
The issue with that usually is for many people that village castle is all they own. They will sacrifice greatly and pour all their money into building it or paying off a loan to build it (while renting in the city), but don't have anything aside from their job or business putting money into their pocket. They also don't have 6 months to a year of living expenses saved in an emergency fund, so heaven forbid if they have an emergency, they will have to get a loan or borrow from people around them. Or sell that village house.
If one has the financial muscle to have a mansion in the village (with all the expenses that go along with it) and still live a full life and be liquid enough to deal with emergencies, then there's no problem building a house that is lived in for barely 2 months in the year. But for most regular people with limited finances, it is not the most prudent financial move and is a pretty steep price to pay for pride and sentiment.
@@PeterOWere what is its real value?
@@user-kpkxgtj Build a mansion in Shagz if you're super wealthy; otherwise, it is a wrong financial investment. Just my thoughts.
Invest first, then let the cash flows from investments pay for your sentimental, but low or even negative return acquisitions.
Could you do a video about the debt distress exchange which wanjigi is constantly fear mongering about? It happened in Ghana yes, can it happen in Kenya or is it just fear mongering
I'll cover this in my future video.
Very enlightening...
Good 👍
Great insight 👌
Good presentation, how does one join these money markets? What is the starting point? Talk about the safety aspects also
text me on 0724612566
Just walk into any britam, old Mutual and ask to Open an MMF Account... deposit money and thats it.
Tell us how money market fund makes money by themselves to boost our confidence and trust in them because huge returns have questions on whether a business makes money
@@denniskisule8131 money market funds make most of their money through investing in treasury bills and bonds, and a smaller amount through corporate paper. So to determine if the advertised gains are legit, check the prevailing returns on those - the information is freely available in the public domain. Money market fund yields will usually be equal to or a few % below that of the assets they invest in.
Good question. Commercial paper investment earns between 18 and 25%. Bonds earn between 16 and 18%. and Fixed deposits earn between 16 and 19%. That's how these MMFs make money. They invest in these instruments.
@@jekokello2039is this annually?
Thank you sir
Good talk
Good job okello
Thank you
I have already built the mansion in shags what can I do now?
Learn from that mistake and make better decisions going forward.
How do you go about in investing in mmfs, do you deposit some money somewhere and wait to reap?
Good one
It 7.5% tax
what happens if the Government collapses yet you have invested 100m? asking for a friend
We thank God, the government is here to stay. But even if it does, we will still have an economy. The incoming government will likely honor the country's financial obligations.
Isn't that more like taking the leap of faith and risk it all on the hands of corrupt political personnel?
What happens to governments bonds when governments change, like in a military coup detat?
The government that takes over may maintain the current economic structure and debt obligation if they don't suspend the Constitution. It is highly unlikely that the incoming government will default the country's debt.
@@jekokello2039Really Okello Fitch has already downgraded 3 major banks who lent the govt billions, signaling distrust in the current govt.
I have subscribed
Thank you very much for your support.
Which money market fund is giving 15%?
Jubilee Money market fund at 16.21%
✍️
Land
Land appreciates with time but the challenge is liquidating it. So, while land is good, I recommend investing in it after building other income-generating assets like bonds, MMfs, and REITS.