Pictures of Ghana by an expat C-level executive

Can you believe it’s February already? Where did the time go! I don't know about you, but it feels like year 2020 has no time to waste as it forges full steam ahead. Each day presents new opportunities to achieve your goals, and I certainly hope that increasing your personal wealth through investment is one of them. Although this requires making sacrifices in the present, you stand to make significant gains in the fast-approaching future.

There are a variety of attractive investment options in Ghana ranging from ownership investments like stocks, real estate and collectibles; lending investments like bonds; and cash equivalents like money market funds. I want us to consider a few benefits of investing in real estate in Ghana by examining the “buy-to-let” approach. In this case, you buy an apartment and rent it out to earn income. This is first of all made possible by buying from a reputable real estate developer so you are assured of enjoying the expected return on your investment.

Every investment must be led by accurate information and realistic expectations. Always remember that if it looks too good to be true, then it probably is. Your hard-earned money should not be invested in any venture that promises ridiculous returns. This is why real estate remains one of the safest forms of investment in Ghana today. Not only is it a tangible asset, but real estate continues to appreciate in value due to several supporting factors. Allow me to share a few of these with you as we continue to explore the benefits of investing in Ghana’s real estate.

Everyone Needs a Home

Ghana's 2019 Budget Statement and Economic Policy contained the government's ambitious plan to make GHS1 billion available as mortgage and housing finance to leverage private capital in order to bridge the country's housing deficit of over two million units. This is a clear sign that the demand for homes is extremely high. The growing middle-class and rapid rural-urban migration in the city of Accra alone presents a substantial demand for homes for both individuals and families. As Ghana continues to maintain steady economic and GDP growth in an environment of political stability, it also increasingly attracts foreign direct investment as the seventh most attractive African country (according to a 2018 survey by Ernst & Young Company). This has resulted in a regular stream of new multinational companies and NGOs and their expatriate employees who undoubtedly increase the demand for housing.

What does this mean for you as an investor? It is proof that Ghana’s real estate sector is full of opportunities for both developers and property owners. Although real estate development is a capital-intensive business, the “buy-to-let” approach of real estate ownership allows you to benefit from the goodwill a developer’s brand has built with only a fraction of what it cost them to establish it. In addition, your real estate investment also earns income while its value increases. Your responsibility is to mitigate risk by investing in locations with high demand or potential for growth.

“The best time to invest in real estate was a few years ago. The second-best time is now!”

Invest in Your Financial Future

Investing in Ghanaian real estate gives you guaranteed returns under secure conditions. For example, the average yield or rate of return on a “buy-to-let” apartment is 5% to 9% per annum in addition to an average capital appreciation of 3% to 5% on the property’s value. The property you buy is not subject to any external administration: it is entirely yours to use as you please and can also form part of your family’s inheritance. Furthermore, if your property’s rent is paid in US Dollars you stand the chance of earning higher value for the same rent as the exchange rate rises. Multiply this by a number of apartments, and you could potentially build a healthy investment portfolio from rent income alone!

Beyond the obvious monetary benefits of investing in Ghana's real estate sector, it is also in the country's interest that its citizens be active players in real estate ownership. If you do not have the means yet to purchase real estate, you can explore the option of mortgage financing from a reputable institution to begin your real estate investment adventure. Remember that real estate is only an asset when it earns you income, so look beyond building or purchasing your own home to investing in one that will diversify your streams of income for many years to come.

Will you decide today to work towards your own valuable real estate investment even as the year 2020 progresses? I certainly hope you do and would be happy to engage more with you on this via email. Let's keep the conversation going with your questions, concerns and suggestions via jorge.osorio@DevtracoGroup.com.