Real estate

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Should I invest in two houses in Eastlands or one on Ngong Road?

Q. I am a communication manager at a listed company on the Nairobi Securities Exchange. I make a gross income of Sh300,000 every month as salary. Given this is the private sector, my job is not extremely stable, so I am considering buying a house for investment. I have two options. Option one is buying two houses in Eastlands both being sold by Housing Finance. A three-bedroom is about Sh6.8 million, a two bedroom Sh5.6 million. The two-bedroom fetches rental income of about Sh20,000 while the three-bedroom is Sh30,000. The second option is using the Sh12 million I have to buy a three-bedroom house on Ngong Road, whose rental income is about Sh80,000 a month. I am not sure if this income is guaranteed, but the house currently has a tenant who is paying this amount per month. What would you advise? I am financing these houses through a mortgage of Sh10 million and the rest from my personal savings.

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