Factors To Consider When Buying Property To Live In Or For Investment

buy house in Ghana

Congratulations you’re ready to buy a house in Ghana! Making the decision to buy property is not an easy one and getting to the point where you’re actually ready to make the purchase takes a lot of thought and planning. One of the major things you need to consider when you start planning to buy a house in Ghana is the purpose of your purchase. Are you planning to buy property to live in or for an investment project through rent and eventually a sale?

READ ALSO: Rent or Buy Property, Which is Better?

After googling the term ‘buy house in Ghana’ for a while, here are some key factors to consider when you are buying property to live in or for investment purposes. 

Long term v short term property price appreciation 

One of the most important factors to consider when you are deciding whether to live in a property or use it as an investment is the rate at which the price of the property may appreciate. Conduct some research on the location of the property. If it becomes clear that property prices may increase in the long term then you should go ahead and plan to live in the property.

There’s no point selling or renting property if the returns are going to be minimal. Instead, utilize the property fully by living in it with your family until the prices increase to a point where you can make a comfortable profit. 

Is it your first home?

This is another serious question you need to ask your self. For many people, a first home is usually smaller and cheaper than subsequent property purchases. If you have plans to buy future homes then consider using your first home as a long term investment opportunity.

Live in your first home while you wait for the property to appreciate. When you are done building or buying your second home, you can move out and use the first property as a regular source of income. 

Consider the nature of the location 

In real estate, location is incredibly important. Location plays a huge role in the rate at which property prices rise and fall. For instance, if your property is located in a high-end neighbourhood with good roads and amenities, prices of properties in the area will be pretty high which will allow you to also quote large prices whenever you’re ready to rent or sell.

Be sure to observe the location of your property very well before deciding whether to live in it or use it for an investment. If prices in the location have been volatile in the past, then you should avoid using it as an investment property.

On the other hand, if the location is like East Legon, Cantonments or Ridge where prices have only increased over time, then you should go ahead and use that property as an investment opportunity. 

Consider your long term plan for your family

In deciding whether to live in your property or use it as an investment, you should also consider your long term plan for your family. Do you want to maintain a stable residence for your children, are the schools in the area better for the kids, do you want to avoid disrupting the routine of your family?

Is it convenient for you in terms of work? If you answered yes to any of these questions, then you have to think twice before deciding to use your property for investment rather than living in it. The inconvenience of moving to a new location might not be worth it especially if the interest from investing in the property is not too great. 

READ ALSO: 3 Things Expats Should Know About Renting or Buying A house

Remember, you don’t have to break the bank to purchase an investment property. Sometimes, it is easier to buy a starter home, observe the market and strike when property prices appreciate. Real estate investments require maximum patience and longevity to give the best returns. Always have this in mind whenever you buy a house in Ghana.

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