Home Prices
Many of the homes for sale in Ghana are quoted in foreign currencies such as American dollars rather than Ghanaian cedi. This practice is used to hedge against depreciation and protect real estate developers. It can actually hurt locals who are trying to purchase a house, however, because the cedi equivalent of the purchase price can increase substantially based on the daily exchange rate. This excludes a large portion of the population from qualifying for mortgages on homes built by real estate developers.Interest Rates
The mortgage interest rates in Ghana is extremely high—especially when compared to other parts of the world—making it even harder for lower or middle income Ghanaians to afford to purchase a home. Over the past few years, interest rates have ranged anywhere from 13 percent to 37 percent for a 15 - 20 year adjustable rate mortgage, which is the only type of mortgage currently offered in Ghana. The United States, on the other hand, is experiencing historic lows on both 30 year adjustable and fixed rate mortgages with rates below 4 percent. In Japan, rates have remained below 3 percent since 2010.Lending Requirements
Financial institutions in Ghana typically require borrowers to make a down payment between 20 and 30 percent. Despite the country’s recent economic growth, it can take up to 20 years for the average person to save this much money.Possible Solutions
Despite obstacles such as these, it is still possible for low and middle income Ghanaians to realize the dream of owning their own home. Here’s how:- Work with a real estate developer that has established relationships with foreign investors to finance a home purchase.
- Shop around to find the bank with the lowest down payment requirement.
Inquire about the possibility of a lease-purchase deal or a rent-to-own agreement when looking for potential properties.
- Select and finalize a House Plan here (we can customize as needed)
- Work with Ghana Homes to get a bill of quantity (pricing)
- Sign a contract to secure price
- Make the require down payment (with a pay as you build plan)
- We begin construction
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