Welcome to the land of sunshine, palm trees, and warm smiles! Ghana, a West African country, is not only a beautiful country but also a hub of history, culture, and booming businesses. With an ever-growing population and a robust economy, the real estate market in Ghana has seen significant growth in recent years, making it an attractive destination for property investment.
But why should you consider buying a house in Ghana? Well, aside from the fact that you’ll wake up to the sound of waves crashing on the shores every morning, Ghana’s real estate market offers numerous benefits to potential homebuyers. From affordable houses to a favorable tax system, there are plenty of reasons why buying a house in Ghana can be a smart investment. So let’s dive deep into buying a house in Ghana.
Researching the Ghana Market
If you’re considering buying a house in Ghana, the first step is to conduct thorough research on the real estate market. Exercising due diligence is the easiest way to get scammed when you are buying a new home or a new property. This will help you gain a better understanding of the different types of properties available and make an informed decision. Here are a few tips to get you started:
- Firstly, it’s crucial to understand the location you’re interested in. Each region in Ghana has its unique characteristics, and you need to decide which one suits your needs. Are you looking for a bustling city, like East Legon Hills or Accra, or a more laid-back atmosphere? Do you want to be close to the beach or closer to the countryside? Once you have a better idea of the prime location, you can then start to narrow down your search.
- Secondly, you need to consider the different types of properties available in Ghana. From apartments to duplexes and townhouses, the market offers a variety of options to choose from. It’s important to have a clear idea of what you’re looking for, including the size of the property and the number of bedrooms. Another thing that can narrow down your search for your dream house is having a boys quarters, which is the place your staff will call home. Having this information will help you narrow down your search and save you time and effort over your perfect property.
- Lastly, before making any commitments, you need to know your budget and financing options. This includes not just the cost of the property but also the various fees and taxes associated with buying a house in Ghana. It’s crucial to have a clear understanding of your financial situation and explore different financing options, including mortgages and loans.
In summary, researching the real estate market in Ghana is the first step in making an informed decision when buying a house. Take the time to understand the location, the different types of properties available, and your budget and financing options. This will help you make a wise investment and avoid any potential pitfalls down the road.
Working with a Real Estate Agent
If you’re in the market to buy or sell property in Ghana, working with a real estate agent can make the process much smoother and less stressful. Not only do they have the knowledge and experience to guide you through the complex real estate market, but they can also handle the nitty-gritty details, such as paperwork and negotiations, so you can focus on what’s important to you. But how do you find a reliable agent you can trust? That is the real question!
The number one way is to ask for referrals! Reach out to friends, family, and colleagues who have recently bought or sold property in Ghana and ask for recommendations. If they had a positive experience with their agent, they may be able to refer you to someone trustworthy. Remember, working with an agent comes at a cost. It can be a flat percentage or, more often than not, the equivalent of one month’s rent. You can negotiate the rate, but that means having that conversation before you ever set foot in a house.
The Buying Process
So, you’ve decided to buy a home in Ghana. Congratulations! But what comes next?
The home-buying process in Ghana can be complex, but with the right knowledge and guidance, it can also be an exciting and fulfilling experience. First, you’ll need to understand the legal requirements and paperwork involved in the transaction. This includes obtaining a land title certificate, registering the sale with the appropriate authorities, and paying all necessary fees and taxes. You may make it a point to see the results of a title search prior to purchase to make sure the deed is free and clear as well as who the rightful owner is.
You’ll also need to negotiate the price and terms of the sale with the seller or their agent. This can involve making an offer, counter-offers, and accepting or rejecting terms. If there is anything you want to be included in the transaction, like repairs or renovations, then be sure to get it done up front and any stipulations in writing. Don’t hand over the balance until you know exactly what you’re getting!
Financing
When it’s time to actually purchase your new home in Ghana, you may think you won’t need much money. That’s not true. You’re going to need lots of money. Although the local currency is the Ghana cedis, some sellers and real estate companies charge in US dollars. This is especially true in the high-end market, which is in high demand in many neighborhoods throughout Greater Accra. That may mean your cost varies based on the exchange rates and a little math for a converted price. Because the current conversion rates change a lot, be sure to know the property prices you’re paying before you close.
You’ll need a down payment to the seller as part of your purchase, and, depending on the fine print, you may also be on the hook for realtor fees and legal fees too.
Mortgage Lenders
There aren’t really mortgage lenders as in the US. They exist, but are not as prevalent as in the west. A mortgage loan here will likely have a high-interest rate, upwards of 25-30 percent! That may be why only about 5% of homes owned by the population of Ghana are financed. The best way to buy most types of land here in Ghana is in cash. And given the amount of money needed to buy, it’s not an investment to take on lightly.
There are banks that provide mortgage loans. They will set out the monthly payments based on if you have a good credit score. Just a few banks offer mortgages, including First National Bank, so your mortgage options are not plentiful. With the boom of economic growth over the last few years as well as the rapidly increasing prices in the housing market, be sure you know your purchase price, fees, down payments, and any time factor prior to signing.
Housing Lingo
There are some important things to know before you throw all your money into a real estate investment. If you are looking into buying your own home in Ghana, you’ll want to know:
- Gated Community: although real estate developers today may advertise that they’re gated, it may not mean they are protected all around with 24-hour security. It may just be a gate, opened all day, with no one in attendance. Be sure to check what level of security exists before you sign on the dotted line.
- Compound: Most property in Ghana is on a compound in that it is walled on all four sides for security. Those walls may have electric fencing or barbed wire deterrents, both for protection.
- Boys Quarters: When a property has a smaller property on the lot with a bedroom or two and a bathroom that is available for your house help, then it’s got a boy’s quarters.
- En-Suite Bedrooms: Just as in the states, an en suite is a bedroom with a bathroom attached.
- Lease: There are various options listed on your purchase agreement for property ownership. One of the most important factors is the terms of that lease. If you are not a Ghanaian, then you may see your ‘purchase’ is written as a 100-year lease. If you know you want to leave your home to future generations, then clarify what that means for you and what clauses can be put in place to protect your investment.
These terms are in addition to the term bedroom house, which refers to the number of bedrooms in a home, and bedroom apartments, which have a bedroom, bathroom, and hall. Knowing these real estate industry terms will play an important role in your dive into the property market.
RECAP: Buying a House in Ghana
In summary, buying a house in Ghana comes with a range of benefits, including stable property values, a growing economy, and a vibrant cultural scene. With the right research and planning, it’s possible to find a home that meets your needs and budget, whether you’re a first-time buyer or an experienced investor. However, it’s important to understand the legal requirements and paperwork involved in the transaction and work with a reliable real estate agent. By doing so, you can navigate the home-buying process in Ghana with confidence and ease.
Our final advice for potential home buyers is to take your time, do your research, and make sure you’re comfortable with the terms of the sale before making any commitments. With patience and diligence, you can find a great place to live in Ghana and enjoy all the benefits of property ownership long-term in this beautiful country.