Kiharu Member of Parliament Ndindi Nyoro stoked a debate with divergent opinions in one of his recent ‘investment’ addresses. This is after the member of parliament claimed that it does not make financial sense to invest your money building houses and apartments.
“When you build a house anywhere, your utility as an investor of that house is only the money you get because you have no utility of living there. So your math must be very direct,” said Ndindi Nyoro.
“Do not be sensational about it. Let us be practical; you have eight flats, do you live there? The answer is no; so why did you build? To make money! Is that the most optimal manner of putting your money?”
According to the Kiharu MP, optimizing your money should be the only consideration without involving emotions.
“If you live there, you can justify and say a utility of a house where you live cannot be justified by the amount of money you are getting. But in this case, you don’t live there. You have not been there for six months. In fact, your caretake lives there more than you do.”
Nyoro went on to say that all his friends who build are always busy on the phone following up on the constructions and construction materials, a hustle he thinks is not worthy.
“If you want that flat so bad, why can’t you invest in a place where you will earn double digits. Then after getting you double digit earnings, wait for your the contractors to finish building the flats. And after getting your 18 percent returns from your investments, after say five years of passive profit, go and purchase the property without breaking sweat?!” Ndindi Nyoro posed.
The Kiharu MP, however, did not clarify what investments will give 18 percent returns and the amount of capital that will be needed to generate adequate passive income for such purchases.
