Real Estate in Ghana. What Should You Know?

Introduction by Host: Dr. Gee

Ghana has so many investment opportunities for locals and foreigners alike. In this thriving video, we discuss some opportunities related to real estate in Ghana. Joseph Armah and Kofi Owusu join us today to share their personal experiences and tips for investing in this market.

Guest Bios

Kofi Owusu is a data scientist and chemical engineer. He currently works for a video marketing platform. He is also exploring current investment opportunities in Ghana.

Joseph Armah is a financial advisor and an engineer, with an extensive background in investments. He has worked in the financial field for over 20 years.

Q: What are you currently doing in Ghana?

K – I am currently exploring investment opportunities here in Ghana. The main way people invest in real estate in Ghana is to build something, then rent it out. There is a lot of friction around people trying to get into homes and the landlords trying to make money. What I am trying to do is smooth those relationships.

J – People have a view of owning a house or land, and that’s all real estate is, but it goes beyond that. I have personally acquired land for houses, which is the traditional view of real estate. But when we talk about the developed market, commercial and industrial real estate needs to be in the conversation as well. As for me personally, I got into real estate because my mom told me to. (Laughs)

Q: What has your experience been like?

K – My experience has been, so far so good. I think everyone knows people who have had bad experiences with land in Ghana. Land ownership in Ghana is fraught with a lot of corruption and is very messy. Fortunately, I have avoided all of that. There have been a few deals that have been tricky, but nothing extreme.

J – People have different reasons for investing in Ghana. Do you want to make money back? Do you want to have a backup home in case you have to leave your current one? Do you just want to build something? It is a matter of risk and reward, and experiences are varied.

Q: What should people look out for when they are looking for real estate in Ghana?

K – There is no risk-free real estate investment in Ghana. Even going through real estate companies involves a certain degree of risk. In terms of land, I would advise buying from people who have a lot of land and buying parts of their property. Tracking down documentation is very difficult in Ghana and fake documentation is rampant, so having the proper documentation in order is very important.

J – Be aware of ballooning costs. If you are building a house for $50K, by the time it is finished, it could double in costs. However, because the building companies cannot charge more than $50K, they start using inferior products. You also need to be aware of the monetary conversion rates, if you are investing from another country. The exchange rates add another variable to the cost.

Q: Would you consider getting a residential home an investment?

J – When we talk about assets, things that you own, the way to turn them into an investment is to put them to work. When assets are generating income, they have become an investment. Having a home could become an investment, if you can sell it for more than you paid for it. So, of course a residential house is an investment.

K – Homes are both immediately useful and an asset for potential investment. There is a reason people are always looking at Zillow and other real estate platforms. If their home is suddenly worth more than most homes, they may sell for a profit.

Q: What should people look out for when investing in Ghanaian real estate?

K – I agree with Joe that people should have a wide view of investing. There is still a lot of opportunity, since the market is still developing, and it is not just in building houses. There has been a boom in technology investments recently in Ghana, so that is another thing to keep in mind. I think people should invest in real estate in Ghana, but do your research before diving in to limit the risk.

J – There is no question in my mind that Ghana is ripe for real estate investment. More people are returning to Ghana after the diaspora and they will need places to live and work. There are many emotional and practical benefits to investing at this time. We can all share in the risks to limit our personal risks, and the rewards of a developed Ghana.

Full Video Here: