Foreclosure: What is it; and Should You Consider Purchasing a Foreclosed Property in Ghana?
- 8 October, 2020
- Industry Trends
Foreclosure is a term you will normally hear in association with mortgages. A foreclosure, in Ghana, can mean good or…
Buying land in Ghana can be a breeze or a nightmare depending on how much information you have. It is always advisable to work with a lawyer whenever you are purchasing land in Ghana.
Land litigation cases are about 80% of all cases in the high courts so it’s best you follow all the due processes and obtain professional legal advice when buying land in Ghana. Ghana has various types of land that anyone can buy. L
can be bought from chiefs, families, stools, individuals, companies, the government or from real estate developers (this list is not exhaustive).
Many have attested to the fact that buying from real estate developers is one of the best ways to go if you are new to buying land in Ghana or if you want peace of mind after acquiring land. However, there are other stories that chip against the credibility of buying land from real estate developers in Ghana. We will be looking at the pros and cons of buying land in Ghana from a developer.
READ ALSO: 30 Top Real Estate Companies in Ghana
Developers purchase large portions of land and then resell those lands to individuals so buying from them is a simpler process as you will be dealing with an organisation that has a defined structure of rules and regulations that govern their operations.
Basically, when you are buying land from a real estate developer, you will get an offer letter, sign an agreement, the lease is given out and that’s basically it. In most cases, your purchase will be approved from the master plan so it cannot be resold by the developer to another interested buyer.
Serviced properties are lands that have basic amenities such as flowing water and electricity readily available. Over the years, the definition of serviced land has grown to include walled estates.
Most properties you will buy from real estate developers have been serviced and are ready for development. You will not have to spend extra money on providing all the required amenities.
Serviced properties are more valuable than unserviced properties. Also, if you are buying land in Ghana as an investment, keep in mind that serviced properties have a 20-25% return on investment year on year, on average.
Buying land from a developer tends to be more valuable given all the factors that are considered by developers before purchasing and selling lands like the location, the amenities and all the legal requirements.
Looking to buy land in that perfect spot? Real estate developers have an eye for these spots and always do their best to acquire lands in strategic locations which will be ideal for workers, families and expats.
Developers normally have land in prime areas and allow you to own a part at a good price. The roads are also normally good to attract more people.
As mentioned at the beginning of this post, land litigation is an issue in Ghana. Buying from developers guarantees some level of security from land litigation, although it is still highly recommended you do your personal due diligence even if you are buying from a developer.
There is a saying in Ghana that when you are buying land, you should deal with the person selling the land as though he is a dishonest person. Do all your necessary checks to verify all the information that you will be receiving.
Some developers have a development timeline for each plot of land. That means, when you purchase any of their lands, you are required to build within a given number of years. This may not be an ideal compromise for people who want to buy and resell land after some years. Each developer has different terms and conditions so it is important to know what you are going in for.
Many have complained that lands sold by developers are too expensive and require large amounts of money for payment. Developers argue that these lands are in good locations, are serviced and have a sense of community around them which will make it a comfortable place to live in.
Anytime land is brought up there is also the issue of fraudsters. Some real estate companies are fraudulent and pose or represent themselves falsely as legitimate companies only to defraud people. Always work with real estate companies that are members of the Ghana Real Estates Development Association (GREDA) since that is the recognised association known for upholding the ethics of the real estate profession, especially among real estate developers in Ghana.
Working with a real estate developer has its pros and cons like engaging in any other transaction in life, so it is important to weigh the pros and cons and assess if it will be in your best interest. If you do decide to work with a developer, the choice of a developer is key.
Developers on the Meqasa website are verified and have been consistent in their work here in Ghana. They have the track record, financial capabilities, lands and a high sense of professionalism to help you get the best land in Ghana.
The best time to buy land in Ghana is now. Are you ready?