Ghana’s real estate market is an attractive investment destination for property investors in 2023 due to a combination of factors, including the country’s rapid economic growth, passive income, get paid triple, political stability, extra income, favorable investment laws, strategic location, attractive property prices, strong rental yields, growing middle class, tourism potential and infrastructural development. These factors offer an opportunity for investors to diversify their portfolio and maximize their returns. However, it is essential to conduct thorough due diligence and seek professional advice before making any investment decisions, as there are risks involved, including political and economic instability, regulatory changes, and market fluctuations.
Ghana’s real estate market has been gaining attention from international investors in recent years. The country’s economy has been growing at a steady pace, and the government has been implementing policies to attract foreign investment. I will explore twleve reasons why you should consider investing in Ghana real estate in 2023.
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I’m going to give you 12 reasons why I believe that now is a good time for you to be buying properties. Get your coffee and let’s dive into it.
FEAR OF DOMESTIC DEBT EXCHANGE PROGRAM (DDEP)
The Ghana Domestic Debt Exchange Program was introduced as part of its efforts to manage its domestic debt and protect the econmy. The program aims to encourage holders of high coupon-bearing government bonds to exchange their bonds for new bonds with lower coupons and longer tenors. However, there is fear among the population about the domestic debt exchange program. In this article I want to discuss with you why 2023 is one of the best opportunities to get into property.
Almost everybody’s scared of the DDEP right now . However, in every econmic crises brings opportunities. You probably heard for the famous quote of Warren Buffett, one of the richest men in the world who said “Be fearful when others are greedy and greedy when others are fearful” All the rich people right now are investing in property they’re buying land and the media are feeding you with all reason why you should not be investing. If you thinking I’m deluded and now’s a bad time you’re probably listening to the media. You’re probably listening to the newspapers claims. You should get into Ghana real estate now is because everybody else is not everybody else is being scared. Whenever people are worried about the interest rates, or worried about the economy and what’s happening then now’s the time to get in.
EXTRA INCOME
Another reason you need to get into property now is because real estate is a really good way to make extra money to supplement your day job income even if you’re not investing in property you could be packaging and selling deals flipping properties controlling properties sometimes. If you look at the cost of living and minimum wages and average salary in Ghana there is nothing left to save at the end of the month.
Additionally, you should be getting now is because getting into property is not just investing in property it’s not just buying a house and renting it out .Getting into real estate is finding deals flipping them, packaging and selling properties. Use rent to rent method, control properties by signing lease contracts with owners, taking rooms and sticking them on Airbnb for cash-flow. When i say getting into property, I mean it means being a real estate investor.
If you invest in property regardless of what’s going to happen over the next six 12 months property is one of the safest Investments you can invest in. Real estate is a tangible asset. If you own land they’re not building any more lands. The richest people on the planet are investing in real estate right now.
Why is it called real estate?
It’s called real estate because it’s real. If you invest into stocks, cryptocurrencies and even some business ventures. Don’t get me wrong, I’m not saying they’re bad Investments. I invest in businesses too. I’ve invested in cryptocurrencies but those investments can disappear an overnight. If you buy a business or invest in a business, that business can crash and burn. However, if you buy real estate even if the value drops, you still have shelter over your head. Worse case scenario, let’s say there’s world war III and you lose the house you still have the land. The world population is increasing rapidly but there isn’t any increase in lands. Own a piece of land right now. A wise man once said “Don’t wait to buy land buy land and wait” . That’s because it always holds its value. Just look back over the last 15 years or 25 years or 50 years or 100 years or thousand years ago and see that land has been the best investment that holds its value.
Read also:What is the best investment to make in Ghana?
GOVERNMENT HOUSING POLICIES
The government is actually making it easier to make money in property. The rich people invest in properties by taking advantage of favourable government policies to get richer. The Minister of Works and Housing, Hon. Francis Asenso-Boakye, has assured the private sector of the Government’s commitment to creating an enabling environment for the construction of mass housing in the country for the next four years. He said “The vision of Government for the housing sector is to use an appropriate mix of public and private sector investments to deliver quality, safe, affordable housing solutions that meet the needs and financial capacity of the ordinary Ghanaian”.
That is huge so while all the poor people are listening to the media and getting scared and not getting into property, the rich people on the other hand are capitalizing on the government programs and then taking advantage of some of these new programs to increase their real estate portfolio.
What is Ghana affordable housing?
There’s a massive 1.8million shortage of houses right now in the Ghana and the government is making it easier for developers to develop homes. The housing deficit however witnessed a 33% reduction from 2.8 million (2010) to 1.8 million (2021), partly attributable to the real estate boom and a 72.8% increase in residential structures within the period. Government is commitment to partner with the private sector to provide off-take for affordable homes by private developers. So go where the tide is going.
Read also:A Snapshot of Ghana’s Real Estate Market 2022/2023
GET PAID TRIPLE IN REAL ESATE
The media is telling you not to invest in real estate the rich people are investing. The all-too-known experts are telling you not to invest in property because it’s risky. But look at what the rich are doing. Follow the money. Andrew Carnegie once said, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
Real estate property investing pays you three times. First, you get paid when you buy the house assuming you buy it at the right price – I mean below its market value. Say for the sake of argument, you buy a house that’s worth $100 000 but you buy it for $70,000 – far below its market value. You just made $30 000 on acquisition day. That is what we called “Theoretical Equity”. Right now there are motivated seller looking to sell. Your job is to find good deals.
Secondly, get you get paid when you rent the property out for cash-flow. Assuming you know the rental market, you can rent it out at the right price. Supposing you rent it out really lower than the market rent and your debt service is high, your property might not cash-flow positively. By that I mean your rent collection should be able to cover your mortgage payments. The property should service debt, if it can’t that is a bad investment. So therefore, you’ve got to buy at the right price and you’ve got to rent it out at the right price. You can also run it as Airbnb property as this proved to be more profitable than monthly rentals. We are pro-rental.Cash-flow is king.
Thirdly, you’re going to get paid is when the house goes up in value. Now you might be thinking but sometimes the property value will drop. In Ghana property value goes up. If you maintain your property, you always going to sell it more than you bought it. In addition, the rental market in Ghana is strong, providing investors with a steady stream of rental income. Rental yields and home appreciation in Ghana are between 5% and 12%, depending on the location and property type. This strong rental market is due to the increasing demand for rental properties, which is driven by a growing population and a shortage of affordable housing.
PASSIVE INCOME
People have different understanding about passive income. There is that myth that it doesn’t exist. It does exist. The best passive income vehicle is real estate. Like any business you have got to put in the work first and then let the business run on autopilot. You can earn passive income from vending machines to youtube videos, etc but the most passive of all passive incomes in my opinion is real estate -both residential and commercial properties. Say you own a retail store or a mall or an office building, you can rent it to commercial tenants or companies on a 5year or 10-year lease preferably triple Net Lease (NNN). You don’t have to do anything but the property will be paying you as long as the tenants renew their lease. When you own properties and you rent it out the money just keeps coming in even if you’re asleep it’s the best passive income vehicle i believe in the world. Your property works for you.
Read also:7 Most profitable real estate niches in Ghana
RAPID ECONMIC GROWTH
Ghana’s economy has been growing at an average rate of 6% over the past few years, making it one of the fastest-growing economies in Africa. The country’s GDP reached $70.6 billion in 2020, up from $47.2 billion in 2016. This growth is due to the country’s vast natural resources, including oil, gold, and cocoa.
The country’s economic growth has resulted in an increase in disposable income, leading to an increase in demand for housing. This demand has contributed to the growth of Ghana’s real estate market, making it an attractive destination for property investors.
POLITICAL STABILITY
Ghana is one of the most politically stable countries in Africa, with a democratic government and a peaceful society. We have held several peaceful elections since its transition to democracy in 1992. This stability creates an ideal investment climate for real estate investors, providing a safe and secure environment for investments.
ATTRACTIVE PROPERTY PRICES
Real estate prices in Ghana are still relatively low compared to other African countries, making it an attractive destination for property investors looking for affordable deals. The average rent for a one-bedroom apartment in the city center is around GHS 2,000 ($340) per month, while rent for a three-bedroom apartment is around GHS 5,000 ($850) per month depending on the location and amenities that comes with it. This affordability makes it possible for investors to enter the market with a lower capital outlay, providing them with the opportunity to maximize their returns.
GROWING MIDDLE-CLASS
The country’s middle class is growing, and this is driving demand for quality housing. According to the African Development Bank, Ghana’s middle class is expected to reach 13 million by 2030. This growth is due to the country’s economic growth and the government’s efforts to promote economic and social development. The growing middle class is also contributing to the growth of the retail and hospitality sectors, providing opportunities for investors to diversify their portfolios.
STRATEGIC LOCATION
Ghana as it is widely regarded as the gate to Africa. It is are is strategically located in West Africa, making it a gateway to other countries in the region. The country has a well-developed transport infrastructure, including an international airport, seaports, and road networks. This makes it an excellent location for investors looking to expand their real estate investment opportunities in West Africa.
TOURISM POTENTIAL
Ghana has a lot of tourist attractions, including historic sites, beautiful beaches, and national parks. This makes it an excellent destination for property investors looking to explore into the tourism industry. The government has been making efforts to promote tourism in the country, including the launch of the “Year of Return” campaign in 2019. The campaign aimed to encourage African Americans and the diaspora to visit Ghana, highlighting the country’s history and cultural heritage.
Tourism has the potential to drive demand for rental properties, particularly in areas close to tourist attractions. This presents an opportunity for property investors to generate a steady stream of rental income while also benefiting from capital appreciation.
INFRASTRUCTURE DEVELOPMENT
The Ghanaian government is investing heavily in infrastructure development, which is improving access to various areas and driving demand for real estate. The government’s flagship program, the One District, One Factory (1D1F) initiative, aims to promote economic development by establishing at least one factory in each district of the country. This initiative is expected to create jobs and drive demand for housing in the areas where the factories are located.
The government is also investing in road infrastructure, including the construction of the Pokuasi interchange, the Tema Motorway Roundabout and the Accra-Tema Motorway Expansion project among others. These projects are expected to improve access to various areas of the country and drive demand for real estate.
In conclusion, Ghana’s real estate market presents an excellent opportunity for property investors looking to diversify their portfolio and maximize their returns. The country’s rapid economic growth, political stability, attractive property prices, strong rental yields, favorable investment laws, growing middle class, strategic location, tourism potential, infrastructural development, and make it an attractive destination for real estate investors. With the right approach, Ghana’s real estate market has the potential to provide attractive returns for investors in 2023 and beyond.
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