• by George

Are you a Ghanaian living abroad looking to invest in your homeland’s thriving real estate market? With its political stability, strong economic growth, and rising middle class, Ghana offers exciting opportunities for savvy diaspora investors interested in buying property in Ghana. However, navigating the property-buying process from afar can be daunting. This step-by-step guide will walk you through everything you need to know to make a sound investment when buying property in Ghana’s dynamic real estate landscape.

Why Invest in Ghana Real Estate? 

Ghana’s real estate market has experienced impressive growth over the past decade. According to the Ghana Statistical Service, the real estate sector expanded by 19.9% in 2019 alone. Several factors contribute to this growth:

• Political stability: 

Ghana is one of the most stable democracies in Africa, with peaceful transitions of power and a commitment to the rule of law.

• Economic expansion: 

Ghana’s economy has consistently grown around 6-7% annually, driven by robust agriculture, services, and oil and gas sectors.

• Rising middle class: 

As incomes rise, more Ghanaians are seeking high-quality housing, fueling residential property demand.

• Improved infrastructure: 

The government is investing in roads, electricity, water, and sanitation, making more areas viable for development.

• Diaspora engagement: 

Ghana is actively courting its diaspora to invest back home with incentives and events like the “Year of Return.”

Step 1: Research Locations and Properties 

Before diving in, take time to understand the market and identify the best locations for your goals, whether a personal residence, rental income, or long-term appreciation. Consider factors like:

• Major cities: Accra (the capital), Kumasi, Takoradi, Tamale
• Up-and-coming areas: East Legon, Airport Residential, Trasacco Valley
• Amenities: Schools, shopping, healthcare, recreation
• Accessibility: Proximity to central business districts, roads, and airports
• Future development plans: Government and private sector projects

Online resources like property portals, local news, and diaspora forums provide insights. Reputable local agents like Landmark Homes offer boots-on-the-ground knowledge to refine your search.

Step 2: Understand Legal Requirements 

Foreigners, including Ghanaians with dual citizenship, can legally buy property in Ghana. However, there are some key requirements and restrictions to note:

• Land ownership: 

Foreigners cannot own land outright, but can lease land for up to 50 years, with an option to renew for another 50.

• Stool/skin lands: 

These communal lands, held by chiefs on behalf of the community, are commonly leased for development. Proper due diligence on ownership and leaseholds is critical.

• Minimum value: 

Foreigners must invest at least $50,000 to buy property.

• Building permits: 

Ensure your developer has proper permits and approvals to avoid issues down the line.

Working with experienced legal professionals is essential to navigate these issues successfully. Many top developers like Landmark Homes Ghana assist buyers with this process.

Step 3: Engage Agents and Developers 

Partnering with credible local real estate professionals is key to finding the right property and ensuring a smooth transaction. Look for:

• Proven track record: 

Successful development projects and positive client reviews.

• Attentive service: 

Prompt, transparent communication and eagerness to understand your needs.

• Local and diaspora knowledge: 

Ability to translate cultural nuances and anticipate challenges unique to diaspora buyers.

• After-sales support: 

Assistance with leasing, property management, and resale services if needed.

Leading developers like Landmark Homes Ghana blend local expertise with a deep understanding of diaspora investor priorities. Their attentive service continues beyond the sale.

Step 4: Inspect and Conduct Due Diligence 

Once you’ve identified a property, it’s crucial to verify that it matches your expectations and has no hidden risks. Key steps include:

• Site visits: 

If possible, travel to Ghana to view the property, meet your agent/developer, and assess the location. Many developers offer virtual tours if you can’t visit in person.

• Professional inspections: 

Hire independent engineers, surveyors, and appraisers to evaluate the property’s structural integrity, built area, and market value.

• Title search: 

Confirm the property has a clean, transferable title deed. Ghana operates a deed registration system, not title registration, so this step is critical. Engage a good lawyer.

• Permit checks: 

Verify the developer has all required permits, and the property is not involved in any disputes or unsettled obligations.

Step 5: Finance Your Purchase 

Ghana’s mortgage market is still developing, with options limited for diaspora buyers. Many choose to finance their purchases through:

• Cash: 

Simplest option if you have enough liquid assets.

• Developer financing: 

Some developers offer installment plans, spreading payments over 1-5 years. Understand interest rates and any restrictions.

• Foreign banks: 

You may be able to get a loan in your country of residence to invest in Ghana. Shop around for competitive rates and terms.

• Local banks: 

Consider opening a local account to facilitate transactions. Banks like Stanbic, Ecobank, Absa, and GCB serve many diaspora clients.

Step 6: Finalise Contracts 

Once your financing is arranged and due diligence done, it’s time to review and sign contracts. Key points to note:

• Property details: 

Ensure the property description, address, land area, purchase price, and payment schedule match what was agreed.

• Ownership structure: 

The contract should reflect your intended ownership, whether individual, joint, or corporate.

• Obligations: 

Note the responsibilities of the seller (delivering vacant possession, providing documents) and buyer (payment, transfer fees).

• Warranties: 

Confirm any developer warranties on fixtures, fittings, construction, etc.

• Completion date: 

When the buyer can take possession, the balance must be paid.

• Dispute resolution: 

Clarify how any disputes will be handled (negotiation, arbitration, jurisdiction).

Have your lawyer thoroughly review and explain any unclear clauses before signing. Many developers like Landmark Homes provide contract templates to speed up drafting.

Avoiding Pitfalls 

To prevent missteps and protect your interests:

• Don’t assume; verify. Insist on documentation for every claim and detail.
• Budget for closing costs like legal fees, stamp duty, and land registry charges.
• Consider tax implications both in Ghana and your residence country.
• Plan for ongoing costs like property management, repairs, insurance, and rates.
• Think long-term about your exit strategy, whether living in, renting, or reselling.

Cultural Considerations 

While Ghana warmly welcomes diaspora investment, navigating cultural nuances is essential for success. A few key points:

• Family matters: 

Involve your immediate family in decision-making. Many properties are intended for multigenerational use.

• Negotiation: 

Haggling is common in Ghana. Experienced agents can advise on fair prices and negotiation tactics.

• Legal pluralism: 

Customary law operates alongside statutory law, especially in land matters. Work with local experts to understand how this affects your interests.

• Timeframes: 

Things may move slower than you’re used to. Build buffer time into your plans, and maintain respectful but persistent follow-up.

• Giving back: 

Consider how your investment can positively impact the local community through job creation, skills transfer, or CSR activities.

Tailored Investment Opportunities 

Forward-thinking developers like Landmark Homes Ghana craft offerings tailored for diaspora investors. Their dedicated Diaspora Team provides market insights, streamlined purchase processes, property management services, and local community engagement advice.

Our prime Accra properties in Labone provide secure land titles and modern amenities, making them attractive for discerning diaspora investors.

Conclusion 

Investing in Ghana property offers diaspora investors a chance to secure their financial future while contributing to their homeland’s development. By following this step-by-step guide and partnering with trusted real estate advisors like Landmark Homes, you can confidently navigate the buying process and achieve your investment goals.

While challenges exist, a clear plan, proper due diligence, and cultural sensitivity can unlock the many rewards of this exciting market. Start your journey today by exploring the tailored opportunities Landmark Homes provides for astute diaspora investors.

FAQs

• Can I buy property in Ghana as a foreigner? 

Yes, foreigners can buy property, but with some restrictions. You can only lease land for up to 50+50 years, and must invest a minimum of $50,000.

• Do I need to be present in Ghana to complete a property purchase? 

While it’s recommended to visit in person, you can complete much of the process remotely, with the help of local professionals like Landmark Homes Ghana. Virtual tours, video conferencing, and online document signing make it increasingly feasible.

• How can I finance my property purchase in Ghana? 

Options include cash, developer installment plans, and foreign or local bank loans. Work with your agent to find the best fit for your circumstances.

• How long does the buying process typically take? 

Timelines vary, but plan for at least 3-6 months from finding a property to final completion, allowing time for due diligence, financing, and legal work. Your agent can provide a more detailed estimate based on your specific situation.

• What are the ongoing costs of owning property in Ghana? 

Factor in property management fees, utility bills, insurance, property rates, repairs, and any lending costs. Get a clear picture of these expenses to ensure your investment is sustainable.

Ready to explore tailored property investment opportunities in Ghana? Contact Landmark Homes Ghana’s dedicated Diaspora Team today to start your journey. Let our experienced advisors guide you to secure, rewarding real estate investments crafted for discerning diaspora investors. Visit http://www.landmarkhomesgh.com or call +233 50 162 2422 now to schedule your free consultation.