Real estate In Ghana
Real Estate Investing in Ghana, the real estate sector has over the last 2 decades seen a tremendous increase in demand for properties. This can partly be attributed to the rapid increase in population growth, establishment of businesses, and industrialization of the economy. In 2019, a successful initiative by the Ghanaian government to promote tourism in the country called the Year of Return has welcomed several foreigners in the country. This has been a contributing factor to the growth of the real estate industry since its inception. Properties in Ghana can be categorized into commercial, residential, special lands, farmlands, and industrial properties.
Examples of residential assets are individual homes, apartments, townhouses, etc. Offices, malls, restaurants, hostels, warehouses fall under commercial properties. Special lands include beaches whereas farmlands are lands designated for agricultural activities. Lastly, industrial properties include buildings for manufacturing and processing purposes.
Per this information, one may deduce the endless opportunities in the real estate bracket. If you are looking to invest in an asset that yields a high return, consider a real estate investment option. It provides steady income and other numerous benefits but before we ferret about some of the advantages in real estate investing, let’s look at what real estate investment is.
What is Real Estate Investing
Real estate investing is the acquisition of property as an asset that yields income over a certain tenure. This means that if your acquired property doesn’t earn you income but rather takes out money from you, it is not considered an asset but rather a liability.
Why Invest in Apartments
- Long Term Financial Security
One major benefit of investing in an apartment is that it provides you with financial security in the long term. Property investment typically takes time to appreciate; this is a good thing for investors because it gives you lasting stability when you are into retirement.
- Multiple Income Streams
Expert financial experts recommend having multiple streams of income if you want to be financially independent. Investing in real estate, be it residential, commercial, or industrial properties can be an alternate source of income through rent or sales.
- Steady Income
If you own an apartment, you can earn money from rental properties. Renting out your apartments gives you a steady income monthly or yearly.
- Earn Passive Income
Earning money must not always involve motion-induced activities. Real estate investment is a lucrative investment that makes you money while you do nothing. Money generated through rent or sale of properties does not involve any fieldwork. Owning to possessing real estate, one can earn substantial amounts in their slumber.
Minus the monetary benefits of investing in an apartment, you enjoy a comfortable life when you include real estate in your investment portfolio. If you choose to reside in the property you invest in, developers ensure that they provide residents with luxury real estate where they can easily access transportation, schools, shops, etc. Thus, At Eden Heights, for instance, it is only a five minutes drive from the largest mall in West Africa, West Hills Mall, and 38 minutes drive from the airport. It has a large sports complex for sporting activities, and 4 swimming pools for its dwellers.
Why you should target apartments in top residential areas
Real estate investment especially in apartments is indeed a profitable business, however, it is only fruitful when you do it right. On your real estate investment journey, you should be mindful of the apartment’s location because your returns are subject to the location of your apartment. In Accra, for example, estates are located in the prime areas of the city, and these include East Legon, Airport Residential Area, Weija, Cantonments, Dzorwulu, Labone, etc. These are considered prime locations in the capital because of their proximity to important centers such as the Kotoka International Airport, Accra Mall, Marina Mall, West Hills Mall, government institutions, businesses, among others.
When you live around those areas, moving from your home to your workplace is a lot easier than living in other neighborhoods, and this makes your life comfortable. You can easily access transport, schools for your children, supermarkets, restaurants, and other recreational facilities. People are opting to live in apartments because they prefer to live peacefully with their families and enjoy security and privacy. If you can give them what they want, they will be willing to pay for it.
Things you need to know before investing in real estate
Let’s now learn some of the things to consider before investing in real estate.
- Beware of Overnight Success
One major reason people invest in real estate is to create wealth, and that is where you need to be extra careful. A lot of the so-called estate experts will organize courses and conferences explaining to you how easy it is to start a real estate investment. They present a get-rich scheme that delivers success within a short period. Investing in real estate takes time to yield any meaningful results and just like any other business, it has risks that you need to be cognizant of.
- Buy from Trusted Developers
Due to the high demand for properties and influx of real estate developers in the market, it is sometimes difficult to know which developer to trust your money with.
Despite numerous property developers in the market, there are few you can trust, they include DevtracoPlus, Clifton Homes, Eden Heights, etc. You can find out more from a previous blog here.
- Location of the property
It is really important to consider the location of the property you invest in because it determines the price you will charge your buyers or tenants. You should ensure that the properties you are interested in are located in prime areas where dwellers will have access to amenities such as shops, schools, transport, recreational facilities, etc.
Another important aspect of real estate investment is the money involved in developing the property. While it requires little funds to buy or rent land, you need a huge capital to develop a luxury estate. Starting real estate investment is not all that plain-sailing; it requires capital upfront. You need to go through document processing and approval which sometimes takes months to get cleared.
- Real Estate Agents
When it comes to the real estate market, estate agents are certainly key players you can’t do without. Primarily, the work of a real estate agent is to connect sellers and landlords to buyers and tenants, respectively. In the course of playing their roles, they are tempted to charge exorbitant fees from parties involved in a business deal. Although you may need their help, you also need to be alert to their activities.
In all, real estate investment is a lucrative business venture that ensures you reach your financial goal of becoming rich. It adds to your investment portfolio to earn multiple income streams and provides long-term financial security. Investing in real estate may sound straightforward to you especially if it is your first time, but you are required to go through processes to receive permits, and it also requires huge capital upfront to commence your projects. Despite the risks involved, just like any other venture if you do it right, real estate investment will be the game-changer of your finances.