The prices of rent in Ghana makes it very likely for one to consider building or buying a house in order to avoid high rent charges as well as landlord confrontations.
Just because it sounds right to buy a house does not mean you should. Like most things, buying a house also has its pros and cons, and chancing upon a beautiful house for sale in Ghana with a large compound, fully furnished and located in a gated community could be really tempting. However, buying a house is a huge investment that requires thoughtful planning before committing resources.
The hard truth is, you might not be ready to buy a house no matter your income level. Below are carefully questions that are carefully put together to help you evaluate if you are really ready to buy a house.
Do you have enough money?
Buying a house is a lot more than just the initial money committed to buying the house. If it is not an outright purchase and you are using mortgage financing, you should have enough money to pay the principal and mortgage interest. According to experts, these expenses should not be more than 30% of your monthly salary.
Do you have debts yet to be fulfilled?
You might have the initial funds to pay for your dream house outright or even principal and monthly mortgage interests but critically take a look at your finances. Do you have any outstanding debts? You do not want your lenders to be chasing you around because you’ve committed a significant part of your income to buy a house. Experts advise your total debts including your mortgage interests should not exceed 36% of your gross income.
Do you have enough savings?
Having enough to make down payment or outright purchase is great. That is a huge feat achieved. However, that is just one aspect of owning a house. You have to make sure you have enough savings to move into your new house, paint and furnish it. All these do not come cheap.
And oh! What about those unexpected emergency costs like leakages and pipe bursts? Will these costs lead you to more debts because you don’t have enough savings? It is clear you do not have to spend all your income and savings to purchase a home. You need more than that to survive post-house purchase.
Do you really know what type of house you want?
Perhaps you know you need a 2 or 3 bedroom house for now but there are so many types of houses you should consider. It is up to you to identify what your needs are and which type of house will better suit you. Take note, each type comes with its unique maintenance and responsibilities.
For example, instead of buying a condo, you could go for a duplex so you rent out the other building for extra income. You are not ready until you know the type of house you are looking for.
Are you ready to stay at this location for a long time?
You should be willing to stay in this purchased house for at least 3 years before you put it out on the market. Some people consider buying a house and re-selling as a profitable investment. However, if you are not ready to stay in this location for a long time, it might be a bad investment.
Considering the costs incurred in moving to this new house coupled with fixes and reselling within a year or two after purchase would not bring you much returns. Prices rarely appreciate significantly after a year.
If you are not certain after all these questions, it will be prudent to hold off on purchasing a house. A decent single room self contained for rent or 1 bedroom apartment for rent can be a good starting point, while you clearly figure out if you will want to buy a house or not.