tag:blogger.com,1999:blog-9317825.post3537769239704750893..comments2023-10-30T15:29:59.720+03:00Comments on Bankelele: Urban Inflation Index: March 2009bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-9317825.post-88888616668033836902009-03-06T18:36:00.000+03:002009-03-06T18:36:00.000+03:00Sahito: Thanks, it’s my own tracker for budget and...Sahito: Thanks, it’s my own tracker for budget and household costs too<BR/><BR/>3N: landlord said he had been undercharging us for years (it’s the first increase in almost four years)<BR/><BR/>Steve: thanks will check on the link. I also doubt the CBK numbers as they probably are measured using only forex bureau ‘official’ returns <BR/><BR/>MainaT: I don’t know why the inflation tracker is been adjusted, but CBK has been noted for shifting goalposts of late <BR/>- You are obviously better versed in mortgage than me. I have been looking for house to buy for some years now and the numbers don’t add up<BR/>1. properties are too expensive<BR/>2. mortgages are too expensive<BR/>3. I’ll have to pull a Devani and build/buy house with hot cashbankelelehttps://www.blogger.com/profile/01180926084939364063noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-41451742012955474512009-03-06T16:36:00.000+03:002009-03-06T16:36:00.000+03:00Banks-pole but my comment above is a bit incoheren...Banks-pole but my comment above is a bit incoherent. On CPI, after seeing above, it seems strange that they want to rewieght the index to remove foods.<BR/>KR-when reviewing a mortgage, you look at 3 things among others.<BR/>Income to mortgage multiple: if i'm earning ksh1m pa and I've a ksh8m mortgage, I'll come unstuck somewhere especially if interest rates go up. So the recommended ratio is 4.<BR/>Loan to value: a bank that lends 100% of the value of a house will come unstuck soon or later. But if house prices go insane, you end up with a situation where this is the only way banks can lend.<BR/>Rent vs mortgage. should be similar at worst and rent higher at bestMainaThttps://www.blogger.com/profile/12266497232119983697noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-82081018008160542612009-03-05T16:57:00.000+03:002009-03-05T16:57:00.000+03:00@ BanksWas rent under market rate before? 40% incr...@ Banks<BR/>Was rent under market rate before? 40% increase sounds too harsh.<BR/><BR/>@ Maina T.<BR/>What is a proper/sane loan-to-value ratio? I have a mortgage though I had never calculated it before (just did that after reading this post :))<BR/><BR/>KRAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-9317825.post-68093386878287087062009-03-05T10:23:00.000+03:002009-03-05T10:23:00.000+03:00Tx Banks. When you lay out like that, one fails to...Tx Banks. When you lay out like that, one fails to understand why they want to CPI so as to reduce the impact of food prices. Its huge and affects all other consumption.<BR/><BR/>V interesting pt about the differential between rent and mortgage repayments. The difference means the income/ltv ratios are not sane. But I imagine this is only for certain parts of the city. Correct?MainaThttps://www.blogger.com/profile/12266497232119983697noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-81943373482145763922009-03-05T02:15:00.000+03:002009-03-05T02:15:00.000+03:00Thanks for the update, as always, an excellent hig...Thanks for the update, as always, an excellent high-informative and well researched post.<BR/><BR/> Link for CBK remittances report is slightly off, should be<BR/><BR/> http://www.centralbank.go.ke/statistics/diasporaremittances.htm<BR/><BR/> Where do they get those numbers ( they are obviously way low). Are the estimates or transfers by formal channels (inter-bank) only?<BR/><BR/><BR/>Another question on rents, if rents are half of what mortgages are (all my conversations with colleagues and friends suggest that this is typical), where are the people who own property finding capital to buy it. After all, commercial property under mortgage that that cannot be carried completely by rental income implies a net negative cash flow.<BR/><BR/>I always thought that this one fact alone was a true indicator of a huge bubble in the pricing of housing in Nairobi. <BR/><BR/>Do you have any thoughts on this?Stevehttps://www.blogger.com/profile/11502868527688437746noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-73000561632520861132009-03-04T18:11:00.000+03:002009-03-04T18:11:00.000+03:00Thanks for the inflation numbers banks. What about...Thanks for the inflation numbers banks. What about rent increases over from 08 to now in your area?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9317825.post-15564879120934059692009-03-03T21:49:00.000+03:002009-03-03T21:49:00.000+03:00Thanks for the great work. Maybe we should conside...Thanks for the great work. Maybe we should consider having a Bankelele CPI to measure inflation lolSahitohttps://www.blogger.com/profile/13892299015336374954noreply@blogger.com