The sages said that there is a challenge for every success, and what that means is that there is a problem on every good thing. The implication is that there is nothing good that doesn’t have its faults, and it is the same for the real estate in Ghana.
It is a good business to get into if you ask me, but at the same time it is fair to say that there are some challenges that make it a not-so-rosy idea, unless of course you know that the challenges do exist and do something about it.
Failure to do that may lead to discomforts that cannot be easily dealt with. The challenges that do occur in that regard include but are not limited to the following:
Land tenure problems
The land tenure system in Ghana isn’t very developed, and this in and of itself does pose a challenge to whoever may be interested in investing in that country. The fact of the matter is that if there is no serious and quick intervention by the legislature there shall be no possibility of expansion of the market.
It is a big challenge that needs to be addressed but which as of yet hasn’t been dealt with and it poses a very big challenge to whoever it may concern.
The danger with such a land tenure system that isn’t very structured is that it brings with it hidden transaction costs that only serve to make the whole business a risky and challenging one, in financial terms at the very least.
Another challenge that is clear arises when it comes to the aspect of leasing land or property in general. In Ghana, unlike many other places, most of the interest that is accrued from a leased property or piece of land goes to the lessor and not to the customer.
What this means is that the investor will make very little from the interests that accrue, which should never be the case in an idea setting. As if that wasn’t bad enough the property reverts back to the estate owner when the lease expires or unless it is renewed again. That is as queer as it is strange, but that is technically what happens at all times.
To make it really big in this aspect of life and real estate it is crucial to understand the various land laws and land types that exist in Ghana.
This is because each land type has its own regulations and if that isn’t understood well there shall be a problem with that. It cannot be a challenge if you know the problem, but it is if you don’t.
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