5 Golden Rules to Investing in Real Estate in Ghana.

Investing in real estate is one of the most profitable ways to grow your wealth. You can spend less money by investing in real estate compared to other investments, and it’s much easier to sell off if you need the cash. But getting started with investment property for beginners can be intimidating. Here are five golden rules for successful investing in Ghana!

Understand the legal process

The first thing to do before investing in Ghana is to understand the legal process. When you buy property, you’ll need to complete the due diligence process and resolve any issues on title before purchasing. You will also need an attorney who specializes in real estate law.

You should also know the difference between freehold and leasehold properties. Freehold properties are absolute ownership of a property, while leasehold properties come with a set period of time that you can use the property for. There may be restrictions when it comes to what you can do with your leasehold property; for example, if you lease your property for residential purposes, you may not be allowed to rent out the property for profit.

Decide on a location

The first step to investing in real estate is to choose a location. Think about the places in your city that are popular and hold their value well. You want to find an area where people want to live or visit. That way, when you sell your property, it will be worth more than when you bought it. For example, if you invested in a building near a baseball stadium, the property would likely sell for more than an empty building on the other side of town.

Consider rental potential

If you don’t have a lot of money to invest in a property, it’s best to consider a rental property. If you know a property will be rented out for a longer period of time, then this could be the perfect investment. The longer the rental period, the more rent you can charge. This means that your property should appreciate faster than if you were to sell it off for cash because of the rental income.

Understand the financials of investing

in Ghana

If you’re thinking about investing in real estate in Ghana, it’s important that you understand the fundamentals of the market. The Ghanaian economy is growing rapidly and is one of the fastest-growing economies in Africa. Jobs are plentiful and unemployment rates are low. However, inflation is high and therefore so are prices for goods and services. You can expect to see an annual inflation rate of approximately 10%. If this seems like a high amount, consider that the majority of countries around the globe have an annual inflation rate below 5%.

The Ghanaian currency is called the cedi and its value fluctuates relative to other currencies. This means that when you buy or sell property in Ghana, you need to know how much your investment will be worth with respect to U.S. dollars at any given point in time. If you don't take this into account, your profits could be significantly less than expected when it's time to sell! Inflation also means you'll need to budget for higher taxes on profits from real estate investments as well as higher operational costs on your property since goods and services will cost more money. Ideally, these issues should be considered before making a purchase decision on a property because they could impact how profitable your investment will be long-term.

Consider your tax implications.

One of the most important things to consider when investing in real estate is what type of return you will get. With residential property, you can expect a return of about 3-6%. But if you’re looking for a business investment, you can expect your investment to make 8-12% in return.

On the other hand, Ghana's tax laws are unfavorable to investors. If you are not living in Ghana full time, your rental income is taxed at 25% and your capital gains are taxed at 35%.

The good news? If you live in Ghana full time and invest within the country, your rental income is only taxed at 5%, and capital gains are not taxed at all.