6 Steps to Verify Land Ownership in Ghana before Purchase

Land litigation remains one of the major problems in Ghana. Lately, issues regarding land have been on the increase, and have made most of the headlines. There have been a lot of demolishing exercises carried out; land guards selling and reselling lands to people; flooding, and tidal waves invading lands in areas such as Glefe, a community near Dansoman, and all suburbs in Accra in the Greater Accra Region.

More often than not, buyers do less investigation to ascertain ownership of the land before purchasing. After thorough investigation, it comes into view that most lands sold out end up being a state acquired lands or for some original owners, but have been sold and re-sold to the poor victims by cunning chiefs and notorious land guards.

In a country like Ghana, land is a valuable asset – the reason being that they do not diminish or loose its value whichever the situation of the economy.

In planning to buy a land in Ghana, important steps must be taken to ascertain the ownership before even envisaging doing so.

Here are 6 practical steps to follow to avoid loosing your hard earned money:

1. The Ghana Land situation - Please visit the site. It is essential that when you want to purchase a land, you first visit the plot and look out for the land and where it is situated. Find out whether it is near a refuse dump site or it is one itself. You must also check the surroundings to see if it's a desirable area you would want live, and also get to know if it is a water logged area. Usually, most lands in such areas are left likely to belong to government, purposefully left out for future projects.
2. Ghana Land Social Amenities - A land would be better to acquire or buy if it has the major necessary social amenities, such as – the land being connected to a good road network, electricity from the national grid, pipe-borne or portable water, and sometimes a market. All these are necessities of human life that we cannot live without. Therefore, it is prudent that you have all these facilities around or in the area of the land you want to purchase. Often, the lands in these areas, where there are no facilities, are not demarcated and therefore may not be for sale.
3. Ghana Land Chiefs and traditional leaders - In Ghana, most land disputes have been said to be caused by some chiefs and traditional leaders, as well as individuals who have self-imposed the name ‘land guards’ on themselves. Some of these chiefs and traditional rulers are in the habit of selling and re-selling lands to people, with mostly the aim of making ‘bad’ money. Many people have been victimised by their behaviours. They have cunning ways of doing this: for instance, if someone buys the land at $13,000, or GHC 31,200 at the time of writing and pays part of the money, or even pays all, but has not put the land to any use, these traditional authorities can resell the same land to a different buyer who can afford to pay much more money to the tune of $20,000 (GHC48,000), something like a ‘money show power’ system. One therefore, must check and be very sure that the land he wants to buy has not already been sold out. Don’t get scammed.
4. Ghana Lands Commission - The buyer would also have to check with the lands commission to ascertain whether the land in question has already been registered in another buyer’s name or has already been sold out. Sometimes, the delay in the registration process on the behalf of the land commission causes the multiple sales of a land, and it also gives some greedy chiefs and land guards the opportunity to sell that same parcel of land to other unsuspecting people. In the event the land title has already been registered, refrain from buying it.
5. Follow-Ups - After you, the prospective buyer have done your due diligence and checks to ensure that the land does not already belong to someone else, you must consult the town and country planning agency in the area, to be informed about the land. For example, people who want to buy lands in Tema – and its nearby towns must consult the Tema Development Corporation (TDC). It helps the buyer to know if the land has been earmarked for a market place or it has been designated for a road construction.
   
   The buyer would also know if the land is a government acquired property. This would save the buyer from future demolition after he had had to spend thousands of dollars to put up a house only for it to be demolished by an original owner or the government. Such demolitions do not come with any compensation, and this could be the greatest lost.
6. Ghana Court Endorsement of Land - Some lands could have injunction placed on them by a court, in the situation whereby its ownership is being claimed by two or more people. Such lands are not supposed to be bought by a new buyer if its proprietorship is being challenged in court. Therefore, it is advisable that you avoid such lands even if one of the alleged owners, a land guard or even a chief wants to sell it at a cheaper price to you. Beware that until the final decision by the court, that land remains untouched.

Purchasing a land and putting it to a full use, for it to be taken back from you could be very traumatic. Consequently, every individual must ensure that, the above steps are taken in their search to buy a land in Ghana and knowing its ownership. This is very important and will save you from unnecessary headache and financial lost.

We can help! Let us purchase land for you and process all documentations. We have 100% success rate with no litigation issues. Our knowledgeable and qualified lawyers and personnel based in Ghana will handle your land needs for an affordable fee. Please contact us and let us know how we can help.
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Interest Rates on Mortgage Loan in Ghana and Its Impact on The Average Ghanaian

If acquiring mortgage loan is a challenging and an exasperating option for many average Ghanaians, the interest rates that come with it is proven to be a catastrophic burden to all. In Ghana, many people have decried the rates at which interests are being charged by financial institutions and mortgage brokers, describing them as outrageous!

There are many local financial institutions, which deal in mortgage loans. These financial institutions include; Ghana Home Loans; Home Finance Company (HFC); Barclays Bank; Eco Bank, and United Bank of Africa (UBA).With a total global capital of around 70 million dollars, and contrary to other international banks, Ghanaian mortgage brokers do not have the sufficient financial capacity to cater for customers’ loan needs. In general, they will offer loan ranging from GH ¢24,315,700.00 ($10,000) to GH ¢243,157,000.00 ($100,000), only; and that comes with untenable high lending rates.

The interest rates as charged by these financial institutions are between 25%-40% on a mortgage loan, making Ghana the country with the highest interest rates in Africa, and the second highest in the whole wide world. This simple scenario reflects very well the ‘absurd nature’ of Ghana’s mortgage interest rate charges. For instance, should one borrow an amount of GH ¢100,000.00 ($40,588.6) for a 10-year period, by the close of the first year only, the borrower is indebted to the bank to the tune of GH ¢140,000.00 ($56,823.95). Meaning, by the end of the 10-year period, the borrower would have paid the bank more than 400% of the original amount on loan; meanwhile, the property they bought or built would not have its value increased that much. In fact, financial institutions are the ones who are making unacceptable exorbitant profits at the expense of the average Ghanaian.

Against all the fiercest criticisms, banks and other mortgage brokers continue with their recurrent activities, justifying the interest rates that they have been infringing on their customers. Banks argue that they have to deal with the cost they incur in terms of the hazardous nature of the loans they give out to customers. Meanwhile, researches have shown that these mortgage brokers refuse to do due diligence and rather blame their customers –predominantly in the informal sector – to be too secretive about their businesses, inefficient, unrealistic in their plans, and volatile.
Whichever the excuses, it is evident that these high interest rates pose a threat to the economy of the country. It stifles the free flow of both the government, corporate, and individual’s dealings – rendering the whole economy helpless and making Ghana an expensive country to live in.

1. Mortgage in Ghana is Too expensive - There is no shred of doubt that these gargantuan interest rates are too expensive in the eyes of Ghanaians and most people cannot afford it, except a handful of those who “have made it” in life. The average Ghanaian earn a little over GH ¢3,500 ($1,420) annually, and so it is very obvious that he cannot think of acquiring a mortgage loan. Already, there would be a tall list of necessities he needs to be provide for the family including paying of school fees, payment of utility bills and the rest. Therefore, how much can he afford to deduct from this money to pay for a loan with such huge interest?
2. Inaccessible Mortgage in Ghana - The fact that one’s source of income and the income itself is a determining factor in acquiring a mortgage loan automatically disqualifies the average Ghanaian who earns just a little over GH ¢300.00 ($121) as salary from obtaining a mortgage loan. This means, he can never live in his dream house because he would not be able to build or buy a house of his own house since he cannot borrow for that purpose.
3. Ghana Mortgage Interest Rates Hardships - High interest rates brings hardship, making living very difficult in Ghana. The pressure of owing a financial institution such a huge sum alone is frustrating. And what happens if the borrower loses his job later? This will amount to foreclosure – where the property would be retrieved from the borrower when he is not able to pay his loan at the given time. This means, he has actually suffered to loose – in terms of having sacrificed so much money to acquire a property, which was never recovered.

Ghana’s high mortgage interest rates remain a contentious issue, stirring hitting debate between Government and the Bank of Ghana.

While others have blamed the government for not doing enough to control mortgage interest rates, substantially; some members of parliament have cautioned Government and the Bank of Ghana about disastrous consequences, should these two entities fail to engage in a workable resolution to this long-term controversial exorbitant mortgage interest rate. Just as the Minister in Charge of Financial and Allied Institutions rightfully put it during a debate on the country’s Treasury bill:

“The issue of high lending rates to customers must be a major concern to many people, and until it addresses economy, it will not make any headway but keep going round in circles.”

How Many Bags of Cement Can Build a Standard Single Room?

In Ghana, a standard single room must be approximately 14 by 14 feet and comprise a toilet, a bathroom, a kitchen, and in some rare cases, a porch.

To embark on building such a structure, one must first take into consideration the building materials and their costs. For instance, the number of bags of cement required for the work, plywood, the volume of sand, and the labour force or workmanship.

Cement is the main building material needed to mould the blocks, and therefore the need to calculate how many bags would be needed for the entire work – the types of blocks to be used at the different levels of the building process –6-inches size blocks specifically for the foundation, and the normal 5-inches for the building itself including, the wall blocks, the concrete work at the lintel level, plastering and flooring.

According to a professional building constructor, Mr. Edward Akabutu of ASLOM Construction Company, a total number of 150 bags of cement would be needed for the construction of a standard single room, prefiguring the total amount for the purchase of the cement alone to GH¢3,000.00 ($1,500.00). This is no small money for an average working Ghanaian, who earns just over GH¢3,000.00 ($1,500.00) annually.

The price of a bag of cement has not been stable over the few years in Ghana, and based on current prognostications, it may take a while before we see depreciation of prices.
Nonetheless, most people in Ghana are still eager to become proprietors. Nowadays, house is as precious as ‘gold.’ There are three principal reasons, which explain people readiness and willingness to rather build or own a standard single room than renting a 2-bedroom house.

1. To beat rental charges - Taking the opportunity of price instability as an excuse, landlords/landladies are in the habit of not only increasing their rental charges every so often, but also charging exorbitant rents for low-quality houses. Some of them go as far as taking a 5-year advance payment from their unsuspecting tenants. Today, a standard single room in Accra is between GH¢150.00 ($ 68.20) and GH¢200.00 ($91.10) per a month. Owning a single room apartment is therefore, one smart way that could save one from financial hardships.
2. Peace of mind - Some landlords/landladies have taken the frequent price increment as an excuse to harass – and even suppress –their tenants in many unnecessary ways. House owners’ enmity does nothing but to trigger frustration and depression that would never be experienced when one lives in their own house.
3. Extra Passive Income & Making Ends Meet - Being a proprietor of a single room apartment in Ghana may be the ultimate option for the average Ghanaian and would be considered a greater feat. If building a house is a huge investment, it is also seen as a great financial relief for owners of such proprieties and a sign of independence and maturity. Regardless of the economic hardship in the country, these house owners are sure to get something in their pocket at the end of the month.

Despite the sort of comfort it brings, the single room is surely not recommendable to everyone, and certainly not to a large family. If, for lack of space, a single room-house is an encroachment of individual privacy, there could be health implications such as the easy passage of communicable diseases from one person to another.

The building of single rooms may be a choice of lifestyle for some average Ghanaians or a short term shelter for others, such structures cannot be the definite solution to the country’s perennial acute housing deficit. Ghana’s population is increasing rapidly and more and more people from the rural areas are moving to the cities. Encouraging such buildings could further worsen Ghana’s already existing serious housing problem, leading to shanty towns. It is obvious that shanty towns tend to further develop into slums, causing dreadful implication on the people’s welfare and the country’s economy in general.

No serious entrepreneur or foreign governments would want to make any investment in a country with poor settlement plans. Hopefully, lawmakers take note of and act upon this.

The Cost of a Bag of Cement in Ghana within the Last 3 Years

Cement is the most commonly used building material in Ghana. Many commodities, goods and services including petroleum products, have seen price hikes over the years with cement not being an exception. The price of cement within the last three years has been increased by almost 120%, causing controversies.

In 2011, a bag of cement was sold at GH¢15.00 ($6.35) and saw a dramatic increase to GH¢17.00 ($7.20) in the following year. The price then shot up to GH¢18.00 or $7.63 in 2013. Today, a bag of cement is sold at GH¢19.00 ($8.10) or even at higher price, depending on the shop from where it is being bought. Unfortunately, with the recent increase in petroleum products, the price of cement is equally likely to climb to GH¢25.00 ($10.63) by the end of January.

If fuel price instability is the main cause of the price increase in cement in Ghana, certainly there are other factors that can be cited, explaining the volatility in the cost of cement.

1. High In Demand - Being the most commonly used building material; cement is much patronized in the construction industry in Ghana. Unfortunately, GHACEM, which is Ghana’s leader in cement production does not have proper infrastructure to meet customers’ needs. In 2007-08, the company was forced to shut down production for several days due to some technical problems. This triggered the increase in price. It is expected that as the demand of a product goes high, its price increases because the company is unable to provide for customers’ needs.
2. Monopoly System - The cement industry in Ghana has been plagued by monopoly. Research shows that GHACEM, the government major share-holding company, had a market share of 97%, before the construction of the new cement factory in Buipe, a small town located in Northern Ghana. Since 2007, GHACEM dominance is diminishing slowing. Recently, other cement producing firms have emerged. They include Diamond Cement, Dangote and Sol cement. Nonetheless, GHACEM is yet to experience a major competition; customers are very much attached to the local brand and are yet to patronize the imported ones.
3. Price Wars - In a bid to prove its superiority over its competitors, GHACEM escalated the price of its cement not only to distinguish itself from other cement producing companies, but also to put a value on its product. To prevent any inferiority tag placed on them, the other cement producing companies also increased their prices, leading to frequent increases. Over the years, the war of dimension of product quality between GHACEM and local cement producing companies has resulted in price competition.

The commercial competition characterized by the increase of prices rather is affecting the consumer. Cement price instability has made building of house very difficult and challenging for the ordinary Ghanaian. More often than not, people have to leave their buildings uncompleted for so many years due to their inability to come to terms with the drastic increase in the price of cement or simply have to opt for makeshift buildings and wooden structures, while some constructors are forced to build poor quality houses to beat down construction cost.

Undoubtedly, it is high time cement producing companies in Ghana adopted strategic measures to stabilize the price of a bag of cement – making it accessible and affordable for ultimate low cost housing. But judging by the current situation, the country will not experience any price depreciation anytime soon, at least not until 2016. Ghana remains one of the most expensive countries to live in.

If house building has become a less appealing activity for the average Ghanaian, the majority of estate developers, constructors, and proprietors will defy cement price increment by adopting new ways of building houses and doubling their annual earnings at the expense of the ordinary Ghanaian and expatriates who often complain about the low-quality but high-cost rental of houses.

For the time being, in anticipating of a ‘miracle,’ Ghanaian consumers would have to adjust themselves and suffocate a little bit more under high-cost of living, wondering how long they would have to muddle through unjustified frequent price increase.

Have you seen other Cement prices in Ghana lately? What are Cement prices in your country? Leave your comment or experience with Cement below or on our Facebook Page here.

How to Decorate Your New Home in Ghana on a Low Budget

So let's say you have just made an investment in building your green-home in Ghana, because you're conscious of the environmental impact of housing and because you know that in the long run you will be saving money (plus your house will be worth so much more). Once the work is completed, there's nothing more exciting than to finally enter your new home. Of course at the beginning it feels like cold and unwelcoming, so you really want to turn it from “house” to “home”. The first thing you have to think of is how to decorate it. Indeed, to create a nice and welcoming environment is fundamental for a positive living. However, you don’t want to spend a fortune on it, so here are a few tips on how you can decorate your new house without spending too much without renouncing to quality and style.

First of all, walls! Whenever you get a new house, you always have to re-paint the walls, either to renew them or to give them the color you wish for your house. When it comes to choosing colors, some of the most popular ones are soft grey, muted pink and taupe, although you can find many other amazing colors that will blow your mind. One of the latest trends is painting the walls of two different colors, making the walls that face each other the same tone (two walls a lighter shade and the ones in front a darker shade). A good way to save money and, also, have fun, is to paint the walls yourself. You can ask someone to help you out, so it will also be a nice and different way to spend time together, especially if you plan to live in it with your significant other, friends or family. After the walls are ready, the house is ready to be filled in.

Hence, furniture! Unless you are taking them with you from your old house, if you're missing some furniture a good idea is to buy it second hand on a free-classifieds website. It's best to contact more than one seller since the items they offer could be already taken or not in perfect condition, so you can choose between all the ones you like when it comes to furniture and decoration. This is specially true when it comes to electronic devices such as kitchen appliances, washing machine, etc.; make sure they're in perfect condition and that you see them working!

When it comes to decoration, there are a few tricks you can use to make them cheaper and better. For example, if your house is very small, or you would like it bigger, use mirrors to make it look larger. It will also make it brighter, which is always cool, adds a positive vibe to the environment and can even help you save money on electricity bills since the light will bounce on them.

Another great way to save money is to have everything to serve a dual purpose. It’s particularly true when it comes to sofas and tables, especially when you are a very sociable person who always have a lot of friends over. Another huge saving thanks to DIY is that of sewing your own pillows. Not only it will save you a lot of money, but you can make them exactly of the size you want, stuffed as you want and you will surely have a lot more choice in therms of colors and textures.

How to Choose the Right Exterior Paint Colors for Your Ghana Home

Painting the exterior of your home not only protects it but also gives it a beautiful appeal. Advancement in technology has created several long-lasting and eco-friendly paints in various colours and variations. Most of these recent paints have been tailor-made to have properties suitable for the exterior of your building. For instance some paint colours can withstand adverse weather conditions whiles others ward off mosquitoes and other harmful insects like Ezzy® and Artilin® respectively.

When choosing the exterior paint colours for your home, these are a few hints you can consider to make your selection right!

1. The stability and total performance of the paint colours. Ensure the paint colour you choose has endurance properties and can stay visible for a very long time. Examples are the paints with enamel, giving a shiny and smooth finish. You don’t want to choose a paint colour that will become lost with time, causing you to repaint every now and then.
2. For the exterior parts of the house likely to encounter a lot of dampness especially during the rainy season, a paint that is resilient to moulds, mildew and fungi is the most appropriate which may usually come in dark colours. A better alternative is to use waterproof paints in these areas available from most paint companies in Ghana like Essy®, Azar®, Suvinil® and so on. If you have timber in certain sections of the exterior, be certain the colour chosen blends in well with the timber look and feel.
3. The sun’s rays are very strong in Ghana, mostly during the afternoons of the dry hot seasons. For the exterior of your building, you want to choose a paint colour that would not easily fade having much contact with strong sun rays. Very light colours like variants of the creams and beiges have a greater possibility of fading away easily with time if not well protected. Check the paint colour you select has protection from ultra-violet radiation.
4. Much as the sun is of concern, so are the rains. Look out for paint colours that would not easily wash off during the rainy seasons. Some paints colours wash off their colours onto other parts of the building making it unsightly. Choose washable paint colours, which normally come in acrylic type from paint manufacturers as Coral®, Essy® and many others. Do get some expert advice in deciding the various colours to apply for the different sections of the exterior of your building.
5. Some paints and colour mixes such as for textured and glossy finishes and Epoxy paints are so complex that, wrong mix and application can mess up your entire building. If you do not have the opportunity to solicit for expert assistance, settle for paint colours and variations that are easy to mix and apply to obtain full access to its benefits. You can always ask the manufacturer or retailers for the best directions.
6. Lately, going green is the hallmark of every activity; hence try to select paint colours that are environmentally friendly. The colours should not be so biting and sharp but can be such that it well integrates with the environment around it; such as the greys, greens and blues. Consider the natural environment around your home where your building is sitting and choose colours that integrate beautifully with the surroundings.

Exterior paint colours are very strong attractions to your home. The appropriate they look and stay, the more people get pleased with visiting your home, so think through carefully when selecting the exterior paint colours for your home in Ghana. Some paint manufacturers in Ghana offer paint colour selection consultancy services to help you make the right paint selection for your home.

How to Build a Picture-Perfect Wall Around Your Ghana House

Image source: AFTEC

In Ghana, one way of protecting your house and the people who leave in it is to build a wall around it. Walls also define the boundaries of the property or plot of land while serving as a design element. They are aimed at protecting the inhabitants and preventing unwanted or dangerous people from entering the house. Nevertheless, most of the time in Ghana, it ends up being too high or too dense, blocking views from outside and preventing you from appreciating what is around you.

Block walls are the most popular type of walls in Ghana mainly because concrete blocks are easy to make and find, and affordable as well. Concrete blocks, also called cement blocks or foundation blocks are usually made from cast concrete which is a mixture of sand and cement and sometimes fine gravel. Brick walls are not very common because bricks are quite limited in availability and not so popular with most Ghanaians, maybe due to the reason that it cannot be painted and decorated as much as block walls. Another reason may be that concrete blocks are easy and cheaper to dry after production in the sun which is very abundant most part of the year in Ghana, unlike bricks which are usually burnt in kilns.

Building a block wall does not take much time and can be completed in a couple of days. Block walls often range between eight to nine inches high, that is between about five to seven blocks stacked up and alternated with mortar infill to strengthen it. A reinforcement system of metal rebar is placed within the walls at well calculated distances to prevent it from collapsing and this creates the column (usually called pillars) you see between the walls. With much determination, focus and expertise guidance it is possible to build a picture-perfect wall that is clean, orderly and very pleasing around your house in Ghana.

Before starting to build the wall however, it is important you consult your house designer or Architect or more specifically, a Landscape Architect. Chances are that he or she may have already designed the wall with the main building design which makes things easier and faster for you. If there is no wall design, ask for some advice and contributions on how to build the wall to tie in with the house design perfectly. Some of the house design elements, materials and colours can be adapted in the wall design to bring about coordination and rhythm.

All walls need a good support to stand firm. This may be a foundation, footer or concrete slab. Whichever it is, it must be strong, clean and level so the mortar and blocks can sit stable and steady. The distance to dig the trench for the foundation will mostly depend on the soil profile and this is already calculated in the structural foundation drawings. You should be able to read or check the construction drawings to find the correct dimensions proposed by the designer or architect. Dimensions of the walls can be deduced from the floor plans and elevations of the external wall design layout. You can ask for assistance from your designer or Ghana Homes if you are struggling to understand the dimensions.

Security is very important for your home but try not to allow it be the main focus of the wall. You should not build it too high or all sealed up to cover the entire building within it, with obvious security features such as huge barbed wires and metal spikes. The security features should blend and tie in aesthetically with the wall so people appreciate the design and beautiful aspects of the wall more. You can make use of honeycomb blocks normally called design blocks in Ghana for your front wall to appreciate the surroundings. Limit protrusions and windings and try to keep it simple as this may go beyond the specified land boundaries which can bring about conflicts with adjacent land owners.

The key to a picture-perfect wall is prior design and good planning. If you desire a picture-perfect wall for your house in Ghana, you have to ask for assistance and guidance from the building experts. Do not think it is so easy and can be done without any prior planing and knowledge. You may end up with an unbalanced, weak and unattractive wall which may cover up all the beauty of your building.