In a recent interview on Joy News’ PM Express, Dorothy Afua Quarshie, Executive Director of Elegant Homes, defended real estate firms against accusations of inflating home prices in the country.
She attributed the escalating costs to the burgeoning expenses associated with construction, necessitating the passing on of these financial burdens to homebuyers.
Ms Quarshie stated that developers often tap into their capital reservoirs to finance critical infrastructure and amenities in emerging areas, further underlining the intricate financial landscape of the industry.
The high costs of raw materials and the depreciation of the local currency have become substantial contributors to the soaring property prices, she noted.
Winston Wobil, Head of Advantage Banking at Ecobank Ghana PLC, offered financial counsel, cautioning potential homebuyers against rash decisions. Stressing the importance of a thorough financial assessment, Mr Wobil advised individuals not to allocate more than half of their salaries towards financing a mortgage.
Moreover, Mr Wobil dispelled the notion that mortgage commitments are insurmountable. Drawing attention to successful negotiations and cases where individuals settled 20-year mortgage facilities in significantly shorter periods, he emphasized the importance of proactive engagement with financial institutions.
The age factor in mortgage eligibility was also addressed, with Mr Wobil revealing that banks are unlikely to extend mortgage facilities to those beyond 60 years. Traditionally, banks prefer a minimum of 20 years for mortgage repayment, further underlining the stringent criteria inherent in the mortgage application process.
Amid these financial intricacies, Mrs. Quarshie contended that more Ghanaians are opting for real estate solutions due to the myriad challenges associated with independent construction. Land title issues, volatile building material costs, and construction delays were cited as deterrents that have swayed individuals toward the reliability of established real estate properties.
Contrary to suggestions of oversupply in the market, Mrs. Quarshie rejected claims that the industry is saturated for the middle to upper class. The demand for real estate, she noted remains robust.
Source:norvanreports