Some real estate firms have absolved themselves from the high cost of houses in the country, saying they cannot be blamed for that.
Defending the assertion, the Executive Director of Elegant Homes, Dorothy Afua Quarshie said the rising cost of building has made it difficult not to 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 November 10, 2023 as part of activities leading up to the JOYNEWS’ Habitat fair, which comes off at the Accra International Conference from November 23 to 26, 2023.
According to her, “Someone will definitely have to take care of this cost that has been absorbed 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.
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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 to finance the facility”.
Mr. Wobil however rejected arguments that when one signs up for a 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 five 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 years.
He said “Traditionally, a bank will want to look a minimum of 20 years to pay back your mortgage”.
Mr. Wobil also disclosed that there are many people that are signing up for mortgage compared to the past.
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Dorothy Afua Quarshie again said “We should not forget about the challenge of land title, cost of building materials which are not stable, compared to an already built property”.
“A lot of people, have tried to build on their own and ended up not being 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.