Buying and owning real estate has proven to be a lucrative choice of investment. It provides the opportunity to diversify your investment portfolio and provides an additional revenue stream. The question of investing in the real estate industry in Ghana is one that both foreign investors and Ghanaian investors have had to grapple with. Ghana’s real estate sector has seen a huge development in the last decade. This is influenced by the growth in demand for both residential and industrial property in Ghana. The demand for residential property is the largest segment in the real estate industry, while the commercial property market is the second-largest segment in the industry. Knowing where and how to invest in Ghana’s real estate market is a major concern to most potential investors. Indeed, knowing the options available to invest in can be equally tasking.
Let us get you started by helping to make the task easy for you and give you a better understanding of Ghana’s real estate market.
Real estate investing refers to acquiring property as an investment to earn money rather than utilizing it as a primary residence or commercial property.
REITs allow you to invest in real estate without the physical real estate. This saves you from the time and cost commitment of buying your real estate property but provides you with exposure to Ghana’s real estate market. With this option, you are entitled to receive dividends as an investor. To invest in a REIT, you make payment to a trust or corporation that purchases a real estate property and the investor receives dividends as the property appreciates. The returns on this investment choice are usually higher than many other stock-based investments. This investment choice eliminates the fuss of owning a physical real estate property since it is eliminated. It also gives you the flexibility to invest in bits, particularly when you cannot raise the full amount to buy a property outright.
The rental housing property in Ghana is a great way to create an additional source of income. You make money from the rent charged. You also get to earn some significant profit when your property's market value appreciates and you decide to sell it off. Investing in real estate via rental properties such as Devtraco Plus luxurious property, NoVA, offers a great profit potential; however, it also requires a great deal of effort on the investor. You may need to find the right and ideal tenants, take care of ongoing maintenance and other issues that may arise. To avoid dealing with the complexity of all the challenges that come with renting a real estate property, you can also hire the services of a property manager to handle the issues that come with renting out your properties. Devtraco Plus can help its customers find suitable tenants to rent out the property via Talis, a subsidiary of the Devtraco Group.
Real estate investing platforms require capital investment; however, the amount to be financed is less than what is required to purchase a real estate property outright. Real estate investing platforms allow investors to join others in investing in a bigger residential or commercial property. It also provides real estate developers with the opportunity to connect to investors interested in financing projects. The investment mainly takes effect via online real estate platforms.
Most often, investors commit to real estate investments for at least five years. Most of these online platforms are governed by rules, and these rules differ from one platform to the other. In some instances, you may be able to access some of your money before the end of the investment period but this will be up to the platform’s discretion and this may also attract some penalties in some instances.
Opting to invest in your own real estate property in Ghana, is another way to start the journey of your investment in the real estate industry in Ghana. Devtraco Plus provides an investment option with its Pelican Hotel Apartments, which is made solely for investment purposes. The most common way in which most people invest in real estate is through their Primary residence. Often these steps precede investing in other types of real estate. In most cases, individuals look to mortgage financing to support their homes’ acquisition and make a monthly payment to settle the mortgage. Acquiring a home, this way is a long-term investment and it can provide you with some protection against the volatility of the real estate market, particularly in times when prices are going up. Investing in your own home can help you build wealth over the long term because average annual returns are not as high as you might expect. Real estate has had its difficulties but it generally appreciates in the long-term. This is one sure way of boosting your net worth.
Another innovative way of generating income from your real estate is to look at the option of listing available rooms or part of your property online for short-term or vacation rentals. The amount you earn would be based largely on the property’s location, the season or time of the year. Living in an area with high tourism traffic can turn a profit. This option does not require huge initial capital; just the extra space can be all you need, and you will start seeing a cash flow quickly compared to investment in stocks. You can look at this as a side hustle or a part-time gig. You will be responsible for furnishing and maintaining the property and bringing it up to code, as well as communicating with renters.
Buying a house with the intention of reselling it quickly is called "house flipping". As opposed to buying real estate as a long-term investment, flipping houses is a way to make some money after the initial investment. Investing in short-term real estate can allow you to leverage your assets when you flip them and make a bit of money. In most cases, investors buy properties that require some repairs and updates at a low cost. In this scenario, you will need to buy low and "sell high" later after making some improvements and getting the house back on the market. Since the real estate market can fluctuate widely, there are no guarantees with house flipping. Get details of how to get started with house flipping here.
It is understood that there are numerous advantages of investing in real estate. The benefit of which could result in the investor earning a consistent income which may lead to financial independence. The benefits include:
This is a no-brainer! Most individuals invest in real estate for the steady flow of income they earn on rent. Depending on the property’s location, you could be earning a meaningful income that can cover your expenses and make additional cash as an afterthought. Properties located in cities or towns with good social amenities generally reap higher income because the demand for properties in such localities are always higher
Whenever this is done rightly, you can get a steady income flow for quite a while and even put something aside for retirement. This can help supplement Social Security funds and any other funds you might already have in place. Where you have a full-time job, this can mean extra money to use toward get-away and pleasant to-haves.
The reward of investing in real estate offers investors long-term financial security as you have a steady flow of income. For instance, owning a rental property provides real estate investors in Ghana with a sense of security because the property increases in value over time. Though there is no assurance of property’s value increasing indefinitely, properties are most likely to increase because land and buildings are appreciating assets. That is the reason why it is constantly advised to altogether explore the location before finalizing the decision to acquire a property at a particular location.
In many instances, most investors dread inflation, this is however different for real estate investors in Ghana. Investing in properties is a very good way to hedge against inflation. As inflation increases, so does the income received from rents and your property value increases significantly. This implies that real estate investors are effectively insured against both the current and the long-term effect of inflation. Real estate investors in Ghana embrace inflation wholeheartedly because as the cost of living goes up, so does their income.
One of the importance of investing in real estate is the tax exemptions investors receive from owning a rental property. This is a significant motivation behind why many decide to invest in real estate. For instance, income received from rent is not subject to self-employment tax. Also, real estate investors enjoy lower tax rates for their long-term investments.
The choice of investing in real estate property in Ghana, cannot be overstated. Devtraco Plus offers several options with its range of real estate investments. All you need to do is to assess your current need and reach out to us to make an enquiry. Whether you invest in buying your own property, renting out part of your space for vacation, or joining a crowdfunded investment option, the benefit to be derived is immense and could significantly transform your net worth. Remember that, hardly anyone invests in real estate property with Devtraco Plus and regrets his or her investment. Take the bold step to begin an investment in Real Estate property with Devtraco Plus.