Some Real Estate firms have argued that, they cannot be blamed for the high cost of homes offered to clients in the country.
Defending the assertion, the Executive Director of Elegant Homes, Dorothy Afua Quarshie said the rising cost of building has made it difficult not pass on the cost to the buyers.
“Most of our Real Estate Developers, have to invest their own capital in developing social amenities in some of these virgin areas leading to these homes and apartments, as well as contract roads with their own funds” Mrs. Quarshie explained.
Mrs. Quarshie was speaking on PM EXPRESS BUSINESS EDITION with host George Wiafe on 10 November 2023 as part of activities leading up to JOYNEWS’ Habitat fair, which come off at the Accra International from 23 to 26 November 2023.
She noted that “someone will definitely has to take care of this cost that has been taken by these developers in putting up these homes”
She pointed out that the high cost of raw materials and the cedis’ depreciation have been a major contributing factor to the high cost.
Speaking on the same programme, the Head of Advantage Banking at Ecobank Ghana PLC, Winston Wobil said people should not be pressured to take decisions to get their own homes,
“A careful assessment should be done by that individual about his or her financial status and what it needs to own a home”, he said.
How does one qualify for mortgage from a bank?
Mr. Wobil advised prospective home owners not to use more than half of their salaries to finance a mortgage home.
“One has to really prepare him or herself, in terms of the amount of money they are prepared to set aside finance the facility”.
Mr. Wobil however rejected arguments that when one signs up for mortgage, one may never be able to pay.
“There have been several circumstances that someone has moved to settle a 20 Year Mortgage facility within 5 years, it’s all about negotiating with your bankers”, he stressed.
On age requirements, Mr. Wobil added that banks are not likely to extend a mortgage facility to a prospective home owner after 60 year.
He said that “traditionally, a bank will want to look a minimum of 20 years to pay be your Mortgage”.
Mr. Wobil also disclosed that there are more persons that are signing up for Mortgage compared to the past.
What is the best option for home ownership in Ghana?
Mrs. Quarshie stated that more people are opting for real estate home due to the stress in building.
“We should not forget about the challenge of land title, cost of building materials which are not stable, compared to an already built property”, she said.
“A lot of people, have tried to build on their own and ended up not been able to complete on time to move in”, she added.
She also rejected arguments that there is an oversupply of home currently in the industry for the middle to upper class.