The real estate business is viewed as one of the most lucrative and rapidly expanding industries around the globe. If you intend to get into a profitable business, consider investing in real estate. You can enter the world of real estate business as an investor as well as a real estate agent.
Since real estate is a money-making business, it appears to be a good career choice for many people. The good part is that you can establish a reputation for yourself in a short amount of time. However, this undeniable success comes with the cost of stiff competition from both existing and new real estate companies.
Real Estate Business in Ghana
The World Bank classifies Ghana as a lower-middle-income country, and it is one of 109 middle-income countries with sustainable growth and development that benefits the rest of the world. Given that Ghana's growth has far-reaching national and regional implications, I'd like us to analyse how real estate investment might contribute to a better economy while also increasing personal wealth.
To succeed in Ghanaian real estate, you'll need to have a thick skin and be willing to confront the obstacles that come with the job. The real estate sector is, in reality, one of Ghana's oldest industries. Over the years, the sector has turned into a gold mine, and many astute entrepreneurs have profited handsomely from it.
In Ghana, investing in real estate can bring plenty of opportunities that can yield long-term rewards. It is, however, one of the few solutions that enable all types of investors to join. Although hardly everyone can engage in mining, run an oil and gas company, or own an international franchise, many local and foreign individuals can become real estate investors.
Residential apartments, office buildings, and commercial outlets are ever in demand in Ghana. They prefer to either rent or purchase buildings they want and to reach the final decision, they may need the valuable insights from a real estate agent or an expert.
In this article, we talk about the important things to know when starting a real estate business in Ghana.
Over the last few years, the real estate business has experienced exponential growth. It brings a great deal to the table for Ghanaians, travellers, and foreigners who want to invest in the country. Firstly, you should find out who possesses the land and make sure you're buying from the right person. Be aware that land in Ghana has been sold to a variety of individuals, including people who are not the true owners. You should get the land title examined and a land appraisal done at the government office. These activities are subject to a cost, which is paid by the buyer.
Second, you should check the agreements personally and be actively engaged with the entire buying procedure of the property. For safe side, connect with a lawyer to examine the documents before proceeding with any payments.
The majority of land in Ghana is leased. This suggests that you can't own the land permanently as a company or as an individual. The terms of the leases range from 25 to 150 years. Foreigners' terms are much less than Ghanaians', but they are all adjustable. It's crucial to talk about this with your land buyer before you make a deal.
You'll have to haggle your way through the process of buying real estate in Ghana. Foreigners are free to purchase land and property in Ghana. In Ghana, there are four different types of land ownership. This is dependent on how they were obtained. Government Land, Customary/Stool Land, Family/Private Land, and Vested Land are the four types of land.
When you buy undeveloped land in Ghana, you must adhere to a certain time limit imposed by the government for constructing it. In the first two years, you may need to construct basic infrastructures, such as a foundation or a building. This also minimizes doubts regarding the ownership of the land or the illicit harvesting of assets or trees on the site. Before purchasing the land, you should inquire about these requirements with the government agency.
In terms of investment goals and initial capital, Ghana's real estate business offers a wealth of income-generating prospects in the short, medium, and long term. Building and owning a home is the entry point for many Ghanaians into real estate investment. The land is purchased in a desirable or available area, permits and other documentation are obtained, building plans are set up, and the necessary labour is hired to begin construction. Individual builders can take anywhere from a few years to a long period to complete this procedure, depending on the resources they have available, whether it's time, money, or both. Purchasing existing real estate has a larger initial cost, but it provides near-instant income potential due to the property's availability for lease or resale.
While the property appreciates in value, a real estate investment can provide year-round income through rent payments. This is due to a high demand for lodging from all directions: single men and women, families, visitors and expatriates, and even personnel on numerous work assignments throughout the country all require acceptable accommodations. People will always need a place to live, thus there must always be a good supply of a range of houses and flats for sale to meet their needs.
However, before signing the dotted line to buy a plot of land or a structure, every real estate investor must keep in mind that location is a crucial determining factor of a piece of property's marketability.
Local and foreign investors in Ghana's real estate market have a level of control that other ventures do not. External factors such as the price of crude oil or gold, for example, impact how much an investment will yield. Conditions beyond an investor's control also influence the performance of money or capital market investments. A real estate investment, on the other hand, is a tangible asset that may be preserved and leased, developed and collateralized, or sold to profit from market conditions. Real estate is a potential technique for accumulating wealth and ensuring financial security because of its versatility.
It's crucial to note that real estate investments take patience because many of them only produce a significant return over time: real estate isn't a get-rich-quick plan. There are also expenditures linked with the property, such as property taxes, budgeted maintenance bills, and unplanned repairs. It's also a good idea to complete your homework before paying for any independent land purchases. According to the World Bank's Doing Business 2020 report, registering a piece of property takes 33 days and costs 6.1 percent of its value. This includes the following items:
o Conducting a search at the Land Title Registry of the Lands Commission to ascertain the property’s rightful ownership and/or reveal any land disputes
o Getting a lawyer to draft a sales and purchase agreement for the buyer and seller
o Assessing the property’s current open market value and paying Stamp Duty to the Land Valuation Division of the Lands Commission
o Submitting an application for a land title certificate at the Land Title Registry
o Issuing the land title certificate after which the property owner can go on to make use of it (although most property owners in Ghana do so before the certificate is issued)
Always keep in mind that there is no replacement for doing things the proper way since it saves you from future losses and regret. When you decide to buy land or a building, it is essential to make sure that all legal and regulatory requirements are met so that your investment pays off for years to come.
Are you thinking about diversifying your income or investing in Ghana? If you haven't already done so, take a risk and invest in real estate. You have the option of financing it with your own money, partnering with others to pool your resources on agreed-upon terms, or borrowing money if you qualify for a bank mortgage. Over time, as you get a greater understanding of the real estate market, you can diversify your investments and create a self-sustaining financial legacy for your family and loved ones.