My husband and I are high school teachers. We have two children who are in secondary school. We live in Kikuyu, Kiambu County in our own home. We are in our early 50s and plan to retire at age 60. Our household expenses are about Sh40,000, exclusive of school fees, which amounts to about Sh120,000 every term. We also support three of our nieces who are in day secondary schools upcountry.
We earn a combined pay of around Sh120,000 and currently do not have debts. Together, we have saved Sh2.5 million at the bank and have the capacity to access a Sh5 million loan. We are contemplating taking this loan and using the money to build rental houses. We are, however, not sure if we should buy a 100×100-foot plot and build an apartment or if we should scout around Nairobi’s low to medium-income areas, lease the same size of land for 15 to 20 years, and build streams of one-bedroom bedsitters for rent. Which of these two will make us more money? We have also thought about investing the whole amount (savings plus loan) in bonds. Which of these will bring more money? Please advise us. Millicent
