If you are considering whether to build or buy a house in Ghana, this guide explores the factors that determine the cost of each option to help you make an informed choice.
One of the biggest decisions when it comes to homeownership in Ghana is whether to buy an existing house or build a new one. Each option has its pros and cons, but cost plays a significant role in the decision-making process.
BUYING A HOUSE
When considering buying a house in Ghana, the upfront cost is generally higher compared to building. This is because the seller will have taken the risks of the house building process, and would therefore be looking to duly enjoy the rewards by selling at a premium. However, there are advantages to buying an existing property:
Fixed Price: The cost of the house is predetermined, and you have a clear understanding of what you're paying for.
Immediate Possession: You can move into the house as soon as the transaction is complete, saving time and eliminating the need for temporary accommodation.
Established Neighbourhood: Existing houses are typically located in established neighbourhoods with developed infrastructure, amenities, and services.
Financing: You may be able to get access to a mortgage to allow you pay only a small proportion of the actual selling price. It is near impossible for a bank to lend you money to build a residential property in Ghana.
BUILDING A HOUSE
Building a house in Ghana offers more flexibility and customisation options, but it requires careful planning and management. Here are some factors to consider when it comes to building a house in Ghana:
Construction Costs: Building a house allows you to control the cost of materials, labour, and design. While it may seem cheaper at first, unforeseen expenses, changes in material prices, and project delays can affect the final cost. This is why it is very important work with a trusted building contractor who will effectively manage the building process.
Land Cost: Land acquisition is a significant expense when building a house. Depending on the location, the price of land can vary significantly, affecting the overall cost of construction. Land prices seems to have gone up by at least 400% over the last 5 years. If you are working to a small budget, you should consider looking outside Accra.
Customisation and Personalisation: Building a house allows you to design and customize every aspect to suit your preferences and needs. This ensures that you get a home tailored specifically to your lifestyle.
Time and Effort: Building a house requires time and active involvement in the construction process. You'll need to coordinate with architects, contractors, and suppliers, making decisions along the way.
CONCLUSION
The decision to buy or build a house in Ghana depends on various factors, including your budget, timeline, customiSation needs, and personal preferences. While buying an existing house offers convenience and immediate possession, building a new house provides the opportunity for customisation. It's crucial to carefully evaluate your financial situation, future plans, and lifestyle requirements before making a decision.
To summarise, if you have the money to spend and will like to quickly take possession, then buying a house in Ghana is for you. If however, time is not of the essence, building allows you to customise the home to your specific needs. If you are on a budget and have the time to invest into building then therein lies your answer. Consider consulting with professionals such as real estate agents, architects, and construction companies to get accurate cost estimates and expert advice.
Ultimately, the choice between buying and building should align with your long-term goals and provide you with a home that meets your expectations, within a budget you can comfortably afford.
If you'd like Addakus Construction to provide you an estimate, please send us an enquiry and we will respond to you.
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