18 January 2010

Real Estate in Ghana

Against all the claims that we are highly indebted and poor Ghana’s property value keeps rising. Perfect example, I bought a piece of land in 2001, now, 9 years later it is worth 10x the purchase price.  Real talk.  Not to mention, gold is soaring through the roof, increasing more than 300% in the last decade. Ghana can’t supply the demand for our cocoa, the raw produce for chocolate.  And you know they need that timber, so they can print up some more paper money so they can buy our stuff.  But here’s a secret, very soon we won’t accept their paper money nor their debt, they can keep it.  And their genetically modified foods, we don’t want them, we will grow our own.  Matter fact, they can come for these computers too, and stay completely out of our hair.  The future of us would love to go forward to a peaceful coexistence with our Creator, without all the static and interference they have imposed.  We would love to put down these books and resume reading the stars, drop the cars and travel through time and space via our mind.

Then again, since it is clear they don’t have any plans of going anywhere just yet, we are forced to endure the consequences of them driving property prices through the roof.  Now that oil has surfaced in Ghana, previously affordable lands and rent have literally been multiplied out of the average Ghanaian’s reach.  Even before oil we were experiencing a constant growth in property rates higher than our Western counterpart. It has gotten to the point that buying in Accra is virtually out of the question, with empty plots going for an average of $75,000 in most decent areas.  Rents are also peaking every day, both residential and commercial, nothing sits, it’s a sellers market.

This news may be discouraging to those just coming in, considering that hard as it is to afford repatriation,  now it’s becoming unaffordable.  Have no illusions, if they could have it their way, we will not be able to afford a parcel of land in our own homeland, thus if you who know what I know then you would be about getting yours while you can.  Time is not on your side.

Fortunately there are still lands on the outskirts of Accra, the capital city, where one can acquire for $3,000 to $5,000.  Thus one can utilize the bulk of their savings on the buildings that will house your family and provide income.   Naturally, it will be many years before these lands are on par with those in Accra, but it will only be another 2-3 years before these lands double in price, which means getting half of what you could afford.  However, if you started now, by buying a piece of land and engaging a contractor to build upon it over the next year or 5 years, what ever works within your budget, then you can realistically and practically provide your family with the security of a safe haven in heaven. 

Another suggestion is that you buy land that can be both residential and commercial.  Instead of just building a home for yourself, build a home with guest rooms or build structure that houses 4 self contained apartments and stay in one.  Or you could build a small office complex, with say 4 stores on the ground level, 8 office suits on the first 2 floors and a loft on the top.  The money you will earn in rent will sustain you the way nothing else can, allowing you to comfortably get your feet wet, without being hung out to dry before you can get firmly planted in the land.

But as with everything, move cautiously when buying land.  For information on the process click our article on Buying Land in Ghana.