Rattibha

Almost every Kenyan investor is stuck with a plot somewhere that they are unable to liquidate.
The plots quickly turn into idle or dead assets with little financial gains
Here's why you should think twice before buying that kaploti:
1. Those plots don't generate any cashflows

The piece of idle land will not generate any income for you.
Stocks generate dividend income, bonds pay semi annual coupons, real estate generates rental income.
But your kaploti will only take money from your pocket to pay land rates, maintain it, fence it...etc.
To make it worse, some people even take loans to buy idle assets. Double tragedy!

2. Land is very illiquid.
If you urgently needed to turn that kaploti into cash, it's almost impossible.
Many people are stuck with their plots that they are unable to liquidate.
The only option available for them is to take a loan and use the land as collateral.
Where the bank mostly under values your land to reduce their chances of making losses.

3. Selling land as an individual in most places is very hard.
The company that sold you that piece of land had to pay for adverts on social media, TV, Radio, bill boards, etc.
How do you plan to sell that kaploti of yours in the middle of nowhere?

False beliefs that people have about land:
1. "They are not making any more of it"
First of all, this is wrong, as in some places like Netherlands, land reclamation is happening.
Besides that, remember your money or income is also a limited resource like the land you are buying.
Hence you should get the most value of it.

2. "Billionaires like the Kenyatta family, etc own huge chunks of land."
It may be true but here are more questions to put that into context:
- Do they also own cash generating businesses or assets? YES
- Do they have other assets in their portfolios? YES
What about you?!

3. "Land always appreciates"
Go to those remote areas and be surprised to find market value of pieces of land hardly changing in as long as 10 years.
As they say, location is very key.

Now, here is how owning those tuplots is affecting your portfolio:
Our investor X below has 32.5% of his portfolio in idle assets.
It even becomes worse if the investor took loans to acquire the pieces of idle land.
The 5.5M stuck in idle land could perform as follows if invested in other asset classes

- A monthly income of 73K if invested in an Infrastructure bond with a coupon of 16%
- A monthly income of 69K if invested in a dividend stocks with a dividend yield of 16%
- A monthly interest of 52K in a MMF with a return of 13%

Most people invest blindly in these plots because they don't know that there are better alternatives to invest in.
True to the adage that goes, "To the man with a hammer, everything is a nail."
Here's how you can transform your portfolio above into a better portfolio that has potential for growth and generates good cash flows.

P.S.
If you would like to learn about these alternative investment options.
You can enroll for your September Masterclass.
Details are in the posters below.
You can also learn more or enroll via this link: gichukikahome.com