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Showing posts from October 8, 2023

How Dairy farming is more profitable than rental houses

Let’s assume you have a quarter piece of land that you want to development and you’re torn between setting up rental houses and venturing into dairy farming – which one would you pick?  From the face of it, many will choose rentals over farming – largely because there is an increasing demand for rental houses – especially in urban areas.  However, this article will show you why opting for rentals over dairy farming would be a huge mistake – investor wise.  An individual that goes for setting up rentals will require to have capital to build those houses – let’s use Ksh10 million.  This means you will need to go and get a bank loan to finance that project. Ksh10 million can do like 10 one bedroom units, including a perimeter wall and other amenities at the plot.  Once complete, as a tenant you say every house is Ksh7,000 per month which brings a total income of Ksh840,000 annualy (assuming all the units will be fully occupied all through the year).  That amou...