Mr Kwamina Bartels, Minister of Works and Housing, on Friday urged members of the Ghana Real Estate Developers Association (GREDA) to build rental units instead of putting up houses for outright purchase.
At a meeting with members of the association in Accra, he said: "You have to bear in mind that it is not every one who would be able to afford to buy or build a house in his or her lifetime no matter how low the price."
Mr Bartels said for this reason, some American investors will soon be in the country to put up two and three bedroom flats to be rented out.
The two bedroom flats would cost about 7,000 to 8,000 dollars while the three bedroom houses would each cost 8,500 and 10,000 dollars. These houses would eventually become the property of sitting tenants.
"With investors in housing units, the market price would determine the terms hence the need for you to work hard to remain in business," he said.
Mr Bartels urged members of GREDA to link up with Ghana Institute of Architects, Planners and Engineers, to be able to put up affordable houses, with little or no defects, for rental purposes. He said the government is seeking a 100 million-dollar loan from the Slovakian Republic for developers in real estate business out of which 50 million dollars would be for members of GREDA This facility to be paid by the government in 15 years would be disbursed to members of the association at between five and six per cent interest.
"We expect you to use at least 45 per cent of this money for rental units with the remaining for outright sale," he said.
Mr Bartels said the disbursement would be done through a bank of government's choice to members with good banking standards.
He urged the members not to abuse this opportunity adding that in the past some members abused similar facilities that were made available to them through the Ministry of Works and Housing. "A member of ours was given a three-million pound sterling loan eight years ago, but has till date not paid a Cedi," he said.
"Let us not abuse this opportunity by buying new Mercedes Benz, marrying new women and building plush houses for ourselves."
