In this week’s edition of Real Estate 101, I share with you five steps to acquiring your first house in Ghana.
Your first house is not meant to be grandeurs, but something simple and functional to relieve you from the renting stress as you plan your life. You don’t want to start a project and be left dry middle way or get caught up with a mortgage obligation you can’t fulfil.
However, if you have the means, there is always room to go big if you prefer an “East Legon” or a “Trasacco” kind of apartments. The most important thing is to make a choice that suits a lifestyle you can afford.
It’s not easy to build in Ghana, even the wealthiest people end up getting their money locked up in projects that never see the daylight simply because they failed to ask the right questions or spent lots of money in court for purchasing a property that wasn’t litigation free.
As a young person hustling, this is the last thing you would ever want to happen to you. Therefore, research online, make that call, talk to friends, family members people who have built and learn from their experiences and mistakes. You may not have everything perfect, but with guidance and the right information, you will see your first project through.
A mortgage company primarily gives loans to help individuals acquire landed property. The amount plus interest is spread over years to enable the individual to make payment while enjoying the facility. The initial payment is mostly high.
When considering a mortgage be sure to choose which currency to pay in. Mortgages in Ghana is usually priced in dollars. However, if you want to pay in Ghana cedis, be ready to pay higher than usual anytime the cedis depreciates.
In Ghana, banks and other financial institutions exist to help you secure a loan to build or buy the home of your dreams. Example of such financial institutions include Absa, First National Bank, Fidelity Bank, Calbank, Bond Financial Services, Dalex Finance etc.
These banks also partner with Real Estate Companies like CBC Properties to offer mortgages too. Do not hesitate to walk into any mortgage company to better understand their terms or policies when it comes to financing your first house.
Form a habit of spending on what you need and not what you want. Yes, that is the golden rule to finance anything in life. Putting money aside for a particular purpose can be hard for many, therefore better to invest in bills, bonds, stock or things that mature at a discounted rate.
The idea is to know exactly how much you will be getting over a specific period. Whether you decide to build or purchase, savings give you a head start to settle and secure the property.
Mortgage companies are your surest bet when it comes to building or acquiring your first house. Ghana Association of Real Estate Brokers (GAR) and Ghana Real Estate Developers Association (GREDA) can also help you with credible brokers and developers too.
Nonetheless, trust your instincts sometimes, if you don’t feel right or are super excited about a property, understand why you feel so. It might save you a lot of trouble.