How to Finance Your Uncompleted Building in Ghana

Have you wondered why in Ghana most developing suburbs are dotted with uncompleted buildings, while others are scattered around many residential areas? Many reasons account for the rise in the number of uncompleted buildings. However, a financial constraint is the greatest challenge to completing a building. Landowner’s inability to raise the necessary funds needed for the completion of their houses delays the construction process for years. Many home builders rely on their savings, loans from friends and families and monthly salaries or salary advance from their employers to complete their dream homes. These means of sourcing funds can prove to be unreliable and frustrating. Nonetheless, there are more reliable ways of accessing resources to complete your building.

 One of such means is the emergence of financial institutions which provide loans for home completion. Over the years, these financial institutions have provided assistance to relieve builders of the difficulty associated with accessing credit facilities to either purchase a house or complete a building. With a wide variety of products, these financial institutions have assisted many builders who struggled to finance their building projects to complete them. In Ghana, HFC Bank, Ghana Home Loans, Fidelity Bank, Cal Bank, Stanbic Bank, etc., are among the few banks that provide credit facilities to complete your building. If you wish to apply for a loan to complete your building construction, there are few requirements to meet.



First, you should be a customer of the financial institution in Ghana you want to borrow from. Also, you must be a salaried employee or self-employed. If you are a salaried worker, you need the following documents to make your application complete: proof of identity (passport, license, etc.); three months’ most recent pay slips or proof of other sources of income; three or six months’ most recent bank statements; proof of residence (utility bills/tenancy agreements, etc.) and credit report (only for non-resident applicants); bill of quantities, building permit, planning permission and picture of the uncompleted property. If you are self-employed, then the following are the application requirements: certificate of incorporation and certificate to commence business; three years’ audited financial statements; company code indicating whether it is a limited liability company or a sole proprietor; three years’ company bank statement and one year’s personal bank statement(only if applicable). The loan can be repaid over a maximum period of between 15 and 20 years.
 

However, if consulting a financial institution for a loan does not appeal to you, the other option to source funds to complete your building is to lease it out. You can find an investor(s) to complete your unfinished building under a contract suitable for you. The number of years the investor can use your building after its completion depends mainly on the amount of money the investor put into completing the building as well as the type, location and purpose of the building. After the expiry of the contract, the building will be returned to you.

Lastly, you can put up your uncompleted building for sale. Interested buyers will purchase your building, and you can invest the money realized in any venture of your choice.

Abandoning your unfinished building is not the solution to financial constraints. You can choose to request a loan from any financial institution, find an investor or sell your uncompleted building to willing buyers.