Thursday, March 28, 2013

The Booming Oil Market in Ghana

ABIDJAN (Reuters) - Ghana - set to upwardly revise its 2012 growth figures on a surge in oil output - will continue to bear down on inflation, acting Central Bank Governor Henry Kofi Wampah said.
The country was Africa's fastest-growing economy in 2011 with estimated growth of 14.4 percent as it joined the ranks of the continent's oil producing countries and pumped the first crude from its offshore Jubilee field.
The economy slowed in 2012, but Wampah said a rally in oil output from the fourth quarter of last year would lead to an upward revision of the current estimated growth rate of 7.1 percent for 2012.
"Last year average production was about 70,000 barrels a day. This year we are already seeing an average of around 112,000 barrels. That is a significant improvement," Wampah told Reuters late on Tuesday on the sidelines of a conference in Ivory Coast.
The 2013 budget forecast is for production of 83,341 bpd.
Ghana, which also produces cocoa and gold, has also been a target for yield-hungry foreign investors impressed by its economic outlook and political stability, but inflation is proving a stubborn problem.
Annual inflation data jumped to 10.0 percent in February from 8.8 the month before, mainly on the back of cuts to fuel subsidies, taking the print into double digits for the first time in nearly three years.
The year-end inflation target is 9 percent.
"We will continue to maintain a tight monetary policy ... And our next MPC meeting will be in May and we would review the developments," he said.
"We think that the second round effects (of cuts to subsidies) may still be there. So we could see that increase, but towards the middle of the year you will see it dipping. That is, if we continue to hold the monetary front," he said.
The Bank of Ghana has held its prime interest rate unchanged at 15 percent since last June, and again maintained it in a meeting of Ghana's monetary policy committee on February 13.
Economists, who had previously thought progress towards taming consumer price inflation might offer the central bank some scope to cut rates, said the size of the subsequent increase in prices had darkened Ghana's economic outlook.
Wampah said the year-end objective of 9 percent was reachable despite inflation edging towards the high end of the Bank of Ghana's 7-to-11 percent target band.
"As of now we don't see the target being threatened."
Ghana will introduce a new inflation basket this month weighted more towards non-food prices, and Wampah said the Bank would need to evaluate its effects on the inflation profile before it could contemplate an interest rate change.
"We'll have a better idea in May," he said.
By Joe Bavier. Source: Yahoo News.

Thursday, March 21, 2013

9 Tips To Help You In Your Home Construction Or Purchase In Ghana

9 Tips To Help You In Your Home Construction Or Purchase In Ghana

The real estate market in Ghana is booming. Whether you are a local looking to upsize your abode or a foreign investor building for the first time in Ghana, here are 9 tips to make the process easier.

1. Consider the location. The urban areas of Accra, Takoradi and Kumasi are very desirable places to own a home, which also makes them the most expensive. You can save a substantial amount of money if you are willing to live in the outskirts of large cities.

2. Allow yourself plenty of time. Clearing a land title for transfer or to obtaining a building permit can take 3 months or longer. Start the process early so you are not rushed.

3. Hire professionals. New construction in Ghana requires in-depth knowledge of the building laws and local industry. Professionals such as Ghana Homes Group can help you every step of the way—from clearing the land title to choosing a floor plan and more.

4. Read the contract. Before you sign any real estate documents, read over them carefully so that you know what is and is not included in the contract.

5. Require proof of compliance. There are a number of reputable contractors in Ghana; unfortunately, there are also some dishonest developers who may try to cut costs by cutting corners. Always require proof of compliance at each stage of construction, up to and including the Certificate of Occupancy. This will ensure that your home will not be subject to demolition by the government.

6. Be flexible. In any real estate transaction, you will inevitably encounter a few hurdles. Remain flexible and be prepared to negotiate with the seller of an existing home. Similarly, new construction is an imperfect science that may require compromise due to unforeseen circumstances such as the weather or availability of materials.

7. Put changes in writing. Any changes that are made during construction should be put in writing and include the agreed upon cost.

8. Don’t sacrifice too much. While it is important to make changes as needed, you should not sacrifice features in your home that are truly must-haves. Know where to draw the line.

9. Perform a walk-through inspection. Every home buyer should walk-through the property prior to closing. Take your contract and make sure everything is as agreed upon. If not, you have the right to postpone the closing until the necessary items are remedied.

Do you need a House Plan? Click here to browse huge selections of House Plans.

Monday, March 18, 2013

9 Questions To Ask Yourself When Buying Or Building A Home In Ghana

9 Questions To Ask Yourself When Buying Or Building A Home In Ghana

The purchase of a home is the biggest investment that most people make in their lifetime. Whether you are purchasing a home for your own use or as an investment property, you don’t want your investment to lose value over time. While the real estate in Ghana is currently booming and the outlook for the next few years is healthy, there is always a possibility that the bubble will burst and prices will drop. You can protect your investment, however, by asking yourself these 9 questions when buying or building a home in Ghana.

1. What neighborhood is best? Even though homes in urban areas such as Accra or Tema tend to be more expensive currently, the prices will likely remain stable as the city’s infrastructure is already in place. New construction prices in rural areas are typically inflated by the developer to recover the costs of putting in roads, running power to properties, etc. Once the infrastructure is in place, the prices of these homes will likely drop.

2. How much space do I need? Take both your current needs and your future needs into account. You don’t want to outgrow your home and have to start your search all over again in a declining market.
3. Does the floor plan work for different lifestyles? The more versatile the home, the more potential buyers.

4. What features are must-haves? Don’t invest too heavily in unnecessary, luxury features.

5. How much can I afford? The worst mistake buyers or investors can make is over-extending themselves financially. Experts recommend that you limit your search to homes priced 5 to 10 percent less than what you qualify for.

6. What will the resale value be? Don’t build or buy the largest, most expensive home on the street. This will decrease the resale value and make it harder to sell. Homes in a median price range are more desirable, especially in an economic downturn.

7. What is the quality of construction? The better the quality, the better the value will hold.

8. Does the home have a competitive advantage? When comparing properties, choose the one that holds an advantage of some sort. It may have energy efficient features, be handicap accessible, close to public transportation, etc.

9. Does it have curb appeal? Ghana Homes that are in good condition and make a good first impression have better resale value.

Wednesday, March 13, 2013

Ghana Real Estate Price Bubble: Will It Burst?

Ghana Real Estate Price Bubble: Will It Burst?

With the American housing market just beginning to rebound from inflated property values and a subsequent crash, the question on many people’s mind is, “will the rapidly increasing Ghana real estate prices experience a similar burst in the near future?” To answer this question, we must look at some of the economic factors that influence real estate prices.

Microeconomic Factors

The personal income level of Ghanaians has risen enough recently that the country’s socioeconomic status has been upgraded from low-income to lower middle-income. Many residents who couldn’t afford a home of their own in the past now can. The demand for existing homes is high; but the supply is low. The 2000 Population and Housing Census estimates 2.3 million new homes will be built by 2025 to keep up with the demand.

Macroeconomic Factors

The construction of new homes helped to boost the GDP of Ghana by 14.4 percent in 2011. By comparison, the Bureau of Economic Analysis reports that the United States GDP slowed in 2011, increasing by only 1.8 percent.

Other factors that influence housing prices include:
  • Demographic trends
  • Urbanization
  • Increases in credit
  • International interest rates
  • International demand
The rapid urbanization of metropolises such as Accra, Tema and Kumasi are driving housing prices up in those areas, yet increases in credit are enabling Ghanaians to keep up with the purchase prices. One of the key differences between the increase of credit in Ghana and that of America experienced just before the real estate bubble burst is the lending standards are stricter. In most cases, you must have a down payment of at least 20 percent to qualify for a mortgage in Ghana; Americans were buying homes with little to no money down prior to the bust.

Improved access to low-interest mortgages has also made real estate in Ghana a desirable to foreign investors. Even if large global economies such as America were to experience another recession, Ghana’s economy is not dependent solely on foreign investments, tourism or other income from those countries.


The real estate market in Ghana is expected to remain healthy for years to come. The country has shown exemplary signs of economic growth and political stability over the past 25 years. The demand for housing stems from the country’s own flourishing economy and rising income levels, not international demand. That, in combination with increases in credit, makes the market strong and favorable.

Invest in Ghana now! Contact Ghana Homes Group for a free consultation.

Monday, March 11, 2013

Electricity Blackout Problems in Ghana...

...Read below how it can affect your lifestyle and how to plan when building a home in Ghana.

Electricity Blackout Problems in Ghana and Lifestyle

The rapid growth in Ghana has caused a problem with the demand of electricity. Rolling blackouts have been occurring on a regular basis from load shedding, the West Africa Gas Pipeline Company cannot supply enough gas to meet the demand, and system failures have also plagued the country. While going without power for a few hours once in a while is tolerable, it becomes very aggravating when it happens day after day, month after month.

The Problem

In 2012, the population of Ghana increased by 1.79 percent. Over the past 6 years the growth rate has hovered around 1.9 percent. This combined with increasing personal income levels has led to a construction boom in Ghana. This is putting a strain on the existing infrastructure and causing blackouts.
Power outages can disrupt everyday life in a number of ways ranging from minor annoyances to major problems. If your home lacks sources of natural light, you might not be able to see without a candle or flashlight even in the middle of the day. You might not be able to cook dinner or complete your work assignments as needed. Or worse yet, If you rely on electricity to power medical equipment the consequences can be life threatening.

The Solution

The government is working with the Electric Company of Ghana as well as other entities in an effort improve the infrastructure and add approximately 3,000 additional Mega Watts to the country’s power grid by 2015. Kweku Awotwi, CEO of Volta River Authority said that the electricity supply has increased between 10 and 11 percent over the past two years and oil production is expected to increase even more.
The solution doesn’t lie entirely with the government, however. Residents of Ghana need to do their part as well by conserving energy whenever possible. If you are building a home in Ghana, you should incorporate energy saving features into your home. These may include:
  • Skylights
  • Solar panels
  • Energy efficient appliances
  • Solar water heaters
  • Emergency backup generators
If you are unsure of the best way to include features such as these into your new or existing home, Ghana Homes Group can help. They employ the best engineers and architects and can help you find solutions to conserve energy and help minimize the impact of blackouts on your lifestyle.

Monday, March 4, 2013

How to Add Solar Energy When Designing Your House Plan

solar energy and solar panel for Ghana

Ghana has experienced quite a bit of economic growth in recent years. This, in part, has transformed the country from a low-income to a lower middle-income socioeconomic status and enabled more people to build new homes. The 2000 Population and Housing Census reported a total of 3.7 dwellings in Ghana with an annual growth rate of 2 percent. This means that 2.3 million new homes are expected to be built by the year 2025. Unfortunately, growth like this is often accompanied by growing pains of some sort.

Power Blackouts

For Ghana, there is not a large enough power supply to keep up with the growing demand. As a result, the entire country has been experiencing blackouts as the Electric Company of Ghana has been load-shedding to manage the supply shortfall. This is expected to continue for the next several months according an article in Africa Review. The government is working with the Electric Company of Ghana as well as other entities in an effort improve the infrastructure and add approximately 3,000 additional Mega Watts to the country’s power grid by 2015. This may or may not be enough to keep up with the growth and demand. For this reason, developers are encouraging those who are in the planning stages of home building to add solar energy features to their house plan.

Solar Energy Options

Ghana’s location near the equator makes it an ideal place to harness the sun’s energy and convert it to much needed power. Following are a few options you may want to consider.
  1. Solar Panels - When most people think of solar energy, they automatically think of large solar panels attached to the roof of a home or business. This is a viable option, albeit one of the more expensive ones.
  2. Skylights or Solar Tubes - Skylights or solar tubes are a more affordable option. Solar tubes are essentially the same thing as skylights but they are smaller in size and work better when roof space is minimal. Either option will reduce the need for electricity by flooding frequently used rooms such as bathrooms and kitchens with natural light.
  3. Solar Water Heater - Water heaters require a lot of energy. A solar water heater can reduce a household’s energy consumption anywhere from 50 to 70 percent.
For additional ideas or more detailed information on adding solar energy features to your house plans, contact Ghana Homes architectural services.

A Look At How Construction Loan Works In Ghana

Nii House Plan

It wasn’t all that long ago that construction loans were introduce to the financial market in Ghana. This has enabled many people who otherwise have not been able to build—or even own—a home of their own to do just that. It has also presented more opportunities for foreign investors.

What Is A Construction Loan?

A construction loan in Ghana works in much the same way that it does in other countries and is considered temporary-to-permanent financing. Borrowers are approved for a certain amount of money prior to construction. They are then required to make interest-only payments on the amount of money that is spent during the construction phase for up to one year, or until the certificate of occupancy is issued by the building inspectorate. Once the home is complete, the balance due is rolled over into a 15 or 20 year mortgage. Borrowers are only required to apply for one loan, however, and only pay one set of closing costs.

Who Can Apply?

Applicants must be at least 18 years of age and be able to prove that they are credit worthy. Even if a person has already started the construction process, they can still apply for a construction/completion loan.

How To Apply?

There are five major financial institutions in Ghana that offer construction loans: CalBank, Fidelity Bank, Ghana Home Loans, HFC Bank and Stanbic Bank. While each one has its own slight variations in the application process, borrowers are typically required to provide the following information:
  • Two forms of personal identification.
  • Address verification.
  • Proof of income.
  • Three months of bank statements.
  • Valid life insurance policy.
  • Proof of land ownership.
Land ownership is often the most difficult thing to prove when applying for a construction loan in Ghana. If you need help doing so, you may want to consider contacting Ghana Homes Group. They employ full-time land lawyers who can research land and find titles that prove the land is not part of a communal trust.

What Are The Terms?

The borrower is typically required to make a down payment of at least 20 percent. Some financial institutions also allow borrowers to capitalize any upfront fees and charges to ease burden of the down payment. The terms of the loan are usually 15 years, although some banks offer 20 year mortgages. Only adjustable rate mortgages (ARM) are offered in Ghana.

Dont Miss Out On Updates, New House Plans & New Articles
Stay up to date! Simply fill out the forms below and we will notify you as soon as new House Plans become available, plus receive Ghana Homes house building insightful articles in your inbox.

About Ghana Homes

Ghana Homes provides luxury high-quality properties in Ghana . We offer state-of-the-art living conditions reflective of the rapid advancements in technology and a growing need for quality housing for both low and high income families. Our group is dedicated to a hassle free living environment in which our client can enjoy all of the benefits of a safe, attractive, and inviting property.

Other areas of service:

  • Architectural Services:
    • Ghana Residential Homes
    • Ghana Commercial Properties
  • Ghana Land Acquisition
  • Property Resale
  • Real Estates Law
  • All forms of real estates transaction in Ghana

Copyright © 2012 - - All rights reserved.