Real estate remains a booming opportunity for Africa-focused investors for good reasons. The growth of Africa’s cities creates a demand for increased volumes of high-quality commercial and residential real estate.
Africa’s population boom is also a burdening factor on Africa’s cities. A need for mass market affordable housing, high-end properties and all in-between stems from the diversity in the multiplying populations, including middle to high-income locals and young entrepreneurial.
Property can serve as an investment instrument with incredible returns in the future. For example, you can make money off your property by renting it out. You can either take on the task yourself or leave it to developers such as Estatepedia Africa to manage for you. This is an especially useful way to earn money on your investment while you focus on other important things. This is similar to buying shares in a company and having it managed by a stock broker.
You can use one or more mortgages to buy property. A mortgage is a debt investment, whereby the borrower is expected to pay back with a predetermined set of payments. Mortgages come in many forms: with a fixed-rate mortgage, the borrower pays the same interest rate for the loan. If market interest rates rise, the borrower’s payment does not change. If market interest rate drop significantly, the borrower may be able to secure that lower rate by refinancing the mortgage. With an adjustable-rate mortgage, the interest rate is fixed for an initial term but then it fluctuates with the market interest rate. Mortgage providers in Ghana include GHL Bank, Stanbic Bank, Republic Bank and Fidelity Bank among others.
Generally, buying property in Ghana is recession proof. For instance; a property with strong cash flow can ride uncertain times such as during a recession for the simple reason that it meets a basic housing need. Ghana has a massive housing deficit so real estate will continue to be in demand regardless of a recession. People will always need a place to live, even during difficult times and this is where you can rent out your property. Even in times of recession, people will forgo other luxuries to have shelter over their heads.