Hello lovely people of Ghana and across the shores of the country and also to my cherished readers it is your favorite writer with another insightful and educative topic about real estate investment in Ghana, I hope and know you will love it after reading through it once again. So without wasting much time let us delve straight into our topic of the day.
How To Invest In Real Estate In Ghana
First of all real estate investment is a type of business entity that deals with buying, selling, and management of properties for it to appreciate with time. In recent years there has been a lot of noise about the Real estate business in Ghana, about how lucrative this business has become, to the extent that even some of the Ghanaian music and entertainment industry players are even investing in that business an example is the famous Criss Waddle and Okyeame Kwame.
Other young Ghanaians have also invested in real estate investments like our very own Cheddar(Nana Kwame Bediako) and Kojo Jones and have become very successful in this business.
Why Invest In Ghana’s Real Estate Business
Ghana is often referenced as a very safe place to live in and to a large extent we can even be considered the safest country in the whole of West Africa so if you are a real estate investor why would you not consider Ghana as one of the places to invest in, so here are some few reasons why I will advise you the investor to invest in real estate business in Ghana.
- Crime: One of the safest countries in Africa and even in the whole world is the Republic Of Ghana. In Ghana, people are very safe walking especially during the day and to some extent during midnight. These tell us that the crime rate in Ghana is at an all-time low compared to other African countries even though we can acknowledge some one or two criminal activities of violence and robbery in Ghana but still, it has a very minimal impact on the country’s safety and the Ghana police service are always working very hard to minimize the impact of criminal activities in Ghana so investing in real estate in Ghana is never a bad idea at all.
- Stable Income: A lease is a contract by which one conveys land, or property to another for a specific time usually in return for a periodic payment. In this scenario, the investor is assured of a stable income because the tenants mostly sign very long-term leases which provide the investor with a flowing and consistent income.
- Property May Appreciate Over Time: Ghana is still a developing country and since more and more investors are trooping into the country to invest in other businesses they will need a commercial property which will increase the demand for it hence the value of the estate investment in Ghana leading to appreciation of the property. sometimes even the investors themselves can make renovations on the property to bring it to their modern standards which can also increase the value of the property.
- Inflation Hedge: This is an investment intended to protect the investor against hedge- ie a decrease in the purchasing power of money inflation. For example, whenever there is high inflation the rate for rent is also increased to keep up with the cost of living and also be able to maintain the property. you can also use commercial property as collateral to go for a loan to start investing in other businesses.
Some Key Steps Involved In Real Estate Investment In Ghana
- Find a property that is in demand
- Find a property that has good rental demand
- Find a property that has a good resale value
- Look for areas with the future potential for real estate development
- Look for areas with good infrastructure
Types of Real Estate Investment In Ghana
- Residential: This one deals with investors who want to rent out their properties
- Commercial: This type deals with investors who want to lease out their properties it mostly deals with offices
- Industrial: This type deals with investors who want to deal in factories or warehouses, by building it or buying it.
- Land: Mostly for investors who want to deal in farming activities
Areas In Ghana To Invest in Real Estate
Ghana is fast becoming the go-to place for tourism, business, or even a mainstay area in West Africa and in recent years the demand for real estate business has increased significantly hence we want to help our upcoming investors in real estate business consider some areas with the potential for earning more profits in real estate investment in ghana.
- ABURI: It is a town in Akuapim South Municipal District of the Eastern Region of Ghana famous for the Aburi Botanical Garden and Odwira Festival.it is a town of tradition where the people are very welcoming. if you are looking for a serene environment and peaceful lifestyle Aburi is a place to consider for your real estate investment. on a day you do not feel like staying indoors you can even go fishing on their beautiful beaches, or you can go on a bike riding on their mountain. One good thing about Aburi is that the cost of living is very affordable.
- OYARIFA: This is a town in La Nkwantanag, a district in the Greater Accra Region of Ghana. this place is very well known for its beautiful and well-arranged and maintained homes together with its green environment, hence giving it the unique blend of modern living nature. they also have very modern and standardized amenities such as good roads, hospitals, schools, supermarkets, and even recreational centers. for a new investor in the market real estate business, Oyarifa is a place you need to consider.
- POKUASE: Pokuase interchange? Sounds familiar right, because it is the largest interchange in the whole of West Africa, yep you read it right. Pokuase is a suburb in Accra the capital city of Ghana and Pokuase is fast becoming a real estate development hub. it has a peaceful and serene environment plus they also have a range of social amenities such as good schools, and shopping centers with the government also doing their best to invest in that place. there you are another place to consider for your real estate investment in Ghana Pokuase should not be far away from your thinking. it is a very good choice for real estate investment.
- PRAMPRAM: It is also another coastal town in the Greater Accra region of Ghana. it is located in the Ningo Prampram district. this town is home to the first and only bulletproof police station in Ghana and also it also harbors the famous Ghanaian soccer center of Excellence where some of the Ghanaian national teams go camping before heading for football tournaments. this area is also known for its natural beauty, peaceful lifestyle serene environment nice and attractive beaches, and more.it is also attracting both foreigners and locals because of its newly built modern social amenities. investing in Prampram will not be a bad idea at all as compared to other towns because you are surely going to benefit from your real estate investment. Prampram is like a magnet it attracts people by itself.
An Overview of Ghana’s Real Estate Laws
Ghana’s real estate laws are primarily governed by the 1992 Constitution, the Land Act, of 2020 (Act 1036), the Land Use and Spatial Planning Act, of 2016 (Act 925), and other subsidiary legislation. The Constitution allocates all power and ownership of all lands in Ghana in the name of the President. The acts on behalf of the people of Ghana. The Land Act provides the legal framework on how one should acquire land, ownership, and use land in Ghana. The Land Use and Spatial Planning Act, on the other hand, provides for the regulation and management of land use and development.
Finding A Good Investment Property
There are a lot of properties investors in the real estate business can consider such as land, residential, commercial, or even in the industry aspect. The type of property and the location will determine the kind of investment you can expect but let us tackle the commercial aspect of real estate investment.
COMMERCIAL PROPERTY: It is a property used exclusively for business-related purposes. it deals with investors who want to lease out their properties. some examples are office space, hotels, restaurants, and even a healthcare facility
What To Consider Before Investing In Commercial Real Estate
- Set Your Goals and Objectives: Before you hit the ground running take time to evaluate and prioritize your plans for the future. goals and objectives do not only help investors to stay focused it also helps the investor take action. So before you start your commercial investment in estate business make sure to set up your personal, professional, and financial goals and objectives.
- Identify Properties That Meet Your Criteria: in the world of commercial properties, a lot of investors mostly consider investments such as hotels and restaurants a lot because it rakes in a lot of money and in a much quicker way compared to other investments. this is because they have already identified what property to invest in, so before you invest in the real estate business you should already have an idea of what type of property to invest in, one key note to remember your location sometimes determines the property you need to invest in.
- Conduct In-depth Research: A successful business plan is always preceded by an in-depth analysis of industry research by identifying your market area, potential competitors, and also the demand for the product you are selling. some first-time investors in real estate investment in Ghana normally go for wholesale to allow them to understand the business module before they purchase a property. with proper research about real estate investment in the Ghanaian market, investors can make informed decisions and close better deals.
How To Finance Your Real Estate Investment In Ghana
- Consider Your Finance and Budget Options: First of all, you need to start with a property that fits within your budget, you can start by buying a property that fits within your budget and finances then if possible you can add some more, but one thing you should also consider and be aware of is that real estate investment does not pay off immediately so try not to invest all profits in it. you can start small and gradually end up building an empire.
- Secure Financing For Your Investment: A few financing options may be right for you depending on your investment strategy. Real estate investors can start somewhere traditional, like a financial institution or government loan mortgage. Or, they can opt for nontraditional financing options like private money lenders, business partnerships, and even crowdfunding. You don’t have to settle on one “method” right now, but you should be familiar with a few options. That way, when it’s time to get your business up and running, you know exactly where to go.
How To Manage Your Real Estate Investment In Ghana
As commercial property owner, you are also automatically the manager which means you are the one responsible for the maintenance and operational oversight of your real estate property. Here are a few tips to help commercial property managers stay sane and successful all year round
1. Monitor The Performance of Your Investment
As a property manager, you know how important it is to have reliable and professional vendors who can handle various tasks and projects on your commercial properties. But how do you monitor and evaluate the quality and performance?
- Set clear expectations
- Track and measure results
- Establish regular communication
- Conduct performance reviews
- Solicit feedback from stakeholders
- Review and renegotiate contracts
2. Make Necessary Repairs and Maintenance
- Always be upgrading This may sound a bit expensive considering the current economic situation in Ghana but it also impacts your bottom line. Today commercial renters mostly look for something new and innovative, newer spaces with more modern amenities just to feel more comfortable and relaxed at home, and to be able to compete with today’s current investors and also be in the game of real estate investment in Ghana you need to update and upgrade to compete in the market of real estate investment. you don’t need to compete completely renovate your property though, cheap and effective updates including light fixes, smoke detectors, and others are all part of the upgrades and this goes a long way to make your tenants happy.
- Have a proactive property maintenance plan: It is a maintenance strategy that aims to identify and fix the reasons for equipment failure before it happens. the goal is to increase asset liability and reduce the risk of downtime. Always be aware of the need for property maintenance, identify assets being maintained, and also review current maintenance practices.
- Manage tenants, if applicable The best way to keep your commercial property bustling with activity and full of tenants is to create a safe, positive environment in every single unit. Performing upgrades and abiding by your proactive property maintenance plans are all part of the equation – but there’s more to it than that. Commercial property managers need to do more than know when to request a handyman, they need to be able to meet the needs of their tenants. In this way, you can manage your tenants very well by making them happy.
Tips for Success In Real Estate Investment In Ghana
The goal of any investment should be to boost your wealth and safeguard your future finances. one of the best investments in Ghana is investing in real estate
Here are some tips to help you find good investment properties in Ghana:
- Do your research
- Choose the Perfect Location
- Undertake a market trend analysis
- Decide on a budget limit
- Determine your return on investment
Conclusion
With the right information and know-how in the business, real estate investment in Ghana is a very profitable venture that one can look into if they are trying to make money. You can use it as a main or side hustle either to rake in some cash.
It would not be a bad idea to try your hands on investing in the real estate business especially when Ghana has become a hub for a lot of foreigners in recent years.
Learn more about real estate investment on Investopedia.
