Ghanaian's are not always familiar with the nuances of purchasing a house. For those who have recently looked into buying a home, you may be wondering what to expect and how to find the best deal possible. This buyer's guide provides information on: - The Ghanaian housing market -What factors should I consider when looking for a new house? -How do I secure financing?
-Tips for finding an affordable property in Ghana
The average cost of homes in Accra is $145,000 USD. And if you're feeling like it might be too much money for your budget, don't worry! There are plenty of properties that start at just $20,000 USD which would make them more accessible for first time buyers or
In Ghana, it's not necessary to pay a deposit in order to get a loan for your home purchase. In fact, banks usually allow you to apply for a mortgage with just your salary. The requirements are quite simple as well: you need to have a two years' salary saved up (following the government requirement), plus a 10% deposit, and be able to prove that you have a 12% income to back it up.
Sometimes a down payment is required, but with a 20% down payment requirement, this only takes you up to $12,500 USD. From there, the mortgage provides the rest of the money required for the purchase.
Of course, not all houses are created equally, and it's important to do your homework before heading out to look for one.
For prospective home buyers, the key thing to consider when looking for a new home in Accra is the population density, how many people you think are going to be living in the house, and what they're going to be using it for. Remember, every extra room you have in your home will need to have a toilet and a sink to cater for their respective users. This is important to factor in, especially for families with multiple children.
Another aspect you have to consider is the price you're paying for the house, how much you're paying per square meter and how the houses vary in terms of both size and location.
As a first time home buyer, financing is often a worry. In order to get pre-approved for a mortgage and possibly find a good deal, one of the best ways to secure financing is to get a pre-approval letter from a lender.
Credit can be difficult for first time buyers, and a pre-approval letter helps eliminate some of the risk that they may experience if they were to purchase a property without a loan. And in the event that they do secure financing, then the lenders require a 3 month agreement.
In general, it is a good idea to plan ahead and submit an offer before your offer gets accepted. With that said, as with many things, you may have a better chance of securing financing if you submit your offer as soon as the seller accepts your offer.
-Avoid paying in full immediately. -Be clear about how long you are willing to lease for. -Know what your budget is. -Before applying for a mortgage, do a quick home study to identify important defects in your property and your willingness to work with them.
-Before applying for a mortgage, do a tax return and property search for you and check with the bank that you want to use about potential funding options.
By Valarie Campbell
There's no shortage of houses for sale in Accra. But, not all are within your reach. A key concern when considering a purchase is whether or not you can find an affordable property in Ghana.
How do I find an affordable property in Ghana?
The first thing you need to do is research the market. This is where you'll come across the right property for you.
