For some people, your vacation is now over. You are reluctant to travel back to your country of origin because you realize that you have fallen in love with Ghana, her people, her vibrant culture. You can finally breathe because it feels like you’re home, where you truly belong. A sure way to establish roots in a particular place is to purchase property.
Buying a home is a significant investment that requires careful planning, especially when it comes to financing.
The real estate market in Ghana is experiencing both abundance and opportunity, with a wide range of options available for buyers and investors alike. It is common practice for homebuyers to provide a 30% deposit before securing a mortgage. For some people, saving up such an amount can seem daunting, but it is possible. Here are some tips on how you can save up for the 30% deposit when buying your home.
1. Set a goal and create a budget
Saving money requires discipline and planning. The first step is to set a realistic goal of how much you need to save and by what date. Once you have a goal, create a budget that helps you manage your expenses and allocate a portion of your income towards saving for the deposit. For many, it is easier to allocate a percentage of the total income after subtracting your needs such as rent or current mortgage payments, daily upkeep, and funds for emergencies. The earlier you start saving, the easier it is to reach your goal. Begin by setting aside a percentage of your income into a savings account each month. A good rule of thumb is to save at least 20% of your income. If you receive a bonus or a windfall, consider putting some or all of it towards your savings goal. Delayed gratification will serve you well in the future.
2. Cut down on expenses
Review your expenses and see where you can cut back. Identify areas where you can reduce your spending, such as eating out, entertainment, or impulse purchases. This may require making some sacrifices in the short term, but it will pay off in the long run when you have saved enough for your deposit.
3. Explore other sources of income
Consider taking on a side hustle or finding ways to generate additional income. You can sell unused items or provide a service in your spare time. Additional income streams increase your earning power and your saving levels. You can also explore investment opportunities that offer a reasonable return on investment. Soon you will get to reach that 30% goal!
4. Seek financial advice
Seek advice from a financial advisor or a mortgage broker. They can help you develop a saving plan that suits your financial situation and guide you through the mortgage application process. You may also talk to your bank or Client Service person to assist you with planning for the deposit and the consequent mortgage payments. Mortgages for homes in Ghana can take up to 30 years depending on your age. You can have the plan that best suits you!
5. Consider government-backed schemes
There are government-backed schemes, such as the National Housing Scheme, which provide affordable housing and mortgage financing for Ghanaians and non-Ghanaians. These schemes may offer lower interest rates and more flexible repayment terms than traditional banks. Explore these options to see if they suit your financial situation. The Republic Bank is notably connected to such schemes. Speak to a Client Service person to get more information.
In conclusion, saving up for a 30% deposit on a house in Ghana may seem like a daunting task, but it is achievable with careful planning and discipline. Real estate is a worthwhile investment both as a home and as an investment decision. With the right savings and financial advice, you will be well on your way to owning prime real estate in the Amistinea Estate from ColeWood Properties. Please visit our website at www.colewoodproperties.com for more information or call our Sales Team on +233 594016358 or send us an email at contactus@colewoodproperties.com.
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