You have always wanted to invest in real estate but you’re not sure where to start. You could try the stock market, or even apartment buildings, but you want a greater return on your investment. How about buying a neglected house in Accra?
Buying these houses can be quite profitable because they are often sold at reduced prices. Though it will require some work to get them up and running again, they are worth the investment. A house that sells for GHC 2 million in good condition, could be sold for GHC 4 million after restoration. Here is how to buy these neglected houses, restoring them to their former glory and selling them for a profit.
A neglected house is one that is not well maintained and can be in a state of disrepair. These houses are often in need of repair, and it can take a lot to get them back up to standard. The dirtier the property, the cheaper the price tag for the house will be. Although this may seem like a good thing at first glance, it does require some effort and investment to make these properties worth anything. Purchasing one of these houses can be a lucrative investment if you put work into restoring it to its former glory.
There are many places you can find these abandoned houses in Accra. One of the best is to search online for them. You might also want to consider asking around town for people who know of abandoned houses in Accra. Once you’ve found them, you will need to research the property thoroughly before making a purchase.
The first thing you need to do is figure out how much the property is worth in its current condition and how much it would be worth after restoration. You could ask a contractor or architect for their opinion on what it would cost to restore the house, or look up estimates online. Once you have this information, decide if it’s worth your time and investment. For example, if a neglected house costs GHC 2 million but could be sold for GHC 4 million after restoration, then buying it would be a good idea!
Restoring abandoned houses can be a costly and time-consuming process. This is why it’s important to estimate the cost of restoration before you buy a neglected house in Accra.
Estimating the cost of restoration will help you have a better idea of how much money you will need to invest in order to buy, renovate and sell this property.
The cost of restoring an abandoned building varies depending on the size, location and condition of the property. Generally, the larger or more expensive a property is, the more expensive it will be for you to restore it back to its original state.
If the property has been abandoned for 10 years or less, then expect to spend around GHC 2 million on restoration costs. On the other hand, if the property has been abandoned for 15 years or more then it could require as much as GHC 4 million for restoration costs alone.
In addition to estimating your investment in restoring an abandoned house, you also want to know what kind of return on investment (ROI) you can expect once it’s renovated. It’s not uncommon for these homes to sell at a profit of up to 500%. So if you estimate that your total investment in restoring one home would be around GH 3 million ($2,835), then your ROI could be worth as much as GH 14 million ($11,729).
The first step is to get a lawyer or some sort of legal protection so you can buy the house without being scammed. The second step is to make sure the necessary documents are in order. You will need documents like proof of taxes, a copy of the title certificate and any other outstanding debts on the property. After you have all of these things, you can make an offer on the house and go through with the purchase.
Once you purchase the property, it’s time to renovate it! You will want to remove most furniture and appliances before starting your renovation because they won’t be usable afterwards. There are many ways to renovate: anything from knocking down walls, installing new windows and doors, or even replacing roofing. And then there are your finishing touches—painting or putting up wallpaper or carpeting. Keep in mind that this process takes time—sometimes months—before you have a finished product that can be listed for sale again.
Before listing your newly renovated house for sale, take pictures that showcase how beautiful it looks now and then list them online! This will allow prospective buyers to see what they are investing in before coming over for a visit. Once people start buying properties from your adverts, you can keep reinvesting in more neglected houses and making more profit off of them!
Before investing in a neglected property, there are some legal and financial issues you should take into consideration.
1. Find out if the property is registered and has the necessary documents to transfer ownership. You cannot transfer property that doesn’t have any documents proving ownership because it will be difficult to sell or rent. You will need documentation such as titles of ownership, land use certificates, building plans, and other documents issued by authorities like the Bureau of National Investigations (BNI).
2. Make sure there are no objections from family members or beneficiaries about transferring ownership. A person can only transfer their rights over a property if he is not being contested by any next of kin. If an individual has made a will stating his intentions for a property and there are no objections from those mentioned in the will, then this person can transfer the property without any issue.
3. Check with the Lands Commission to see when the last time was that you paid your land tax and find out how much it was so you can make payments for future years without incurring penalties for late payment.
4. You will also need to pay stamp duty on your purchase price at the Stamp Tax Office of Ghana Revenue Authority (GRA) before submitting your application form at GRA’s Property Registration Division in Accra Central District Office-PNDC Building on Broad Street Extension in Accra Central District or PNDC Building at No 3 Court Avenue East Legon Accra Ghana's capital city as
The expected profit from buying and selling a neglected house is about 600%.
To illustrate, suppose you buy a neglected house for GHC 2 million at the market price of GHC 1.5 million. If you invest in renovating the house, it could then be sold for GHC 4 million. That would mean your profit is about GHC 2 million.
One way to make even more money is by renting the property out before you sell it. This will help to cover some of your expenses during the renovation process. When you sell the property, your profit will be higher than if you had only renovated and then sold it.
A neglected house is a property that was once occupied but for some reason or the other, the occupants have either left or been forcefully removed from the house. If you are looking for a place to invest in, then a neglected property could be a good option. But before you purchase one, there are some things you need to consider.
For starters, find out why the house is neglected and what kind of work you need to do to restore it.
Other things to consider are how much it will cost to repair it, how much the property is worth after it is restored, how much you will pay for it and how much profit you will make if you sell it again.