According to data released by property development and management firm HassConsult , saving 15% of a Kshs 25,000 salary every month for five years is enough to raise a deposit on a property worth Kshs. 1,314, 729. This property would be a bedsitter on Mombasa Road or a small plot in the outskirts of Nairobi. Most mortgages usually require a deposit of 10-20% of the property value for lenders to finance the remaining 80-90% in form of a home loan based on prevailing interest rates.
This data was released by the property development firm in their report for the 2nd quarter of 2012.
The following table shows the average price of different types of properties, and the amount one needs to save for a month for five years to raise this 20% deposit.
So what would your current salary get you after five years if you were to save 15% every month?
