While driving through Accra recently, I saw dozens of building construction going up in the city centre. I could not help but notice how dependent we have become on steel and concrete for building. Even the scaffolding used for construction was all made of steel. I found myself wondering if an alternative to steel exists. I therefore decided to do a little research into that and here are a few facts I gathered:

Did you know that developing countries like Ghana have the highest demand for Steel reinforced concrete? According to Future Cities Laboratory in Singapore, developing countries use close to 90 per cent of the cement and 80 per cent of the steel consumed by the global construction sector. However, such countries often do not have the means to produce the steel to meet that demand.  Out of 54 African nations, for instance, only two are producing steel (South Africa and Egypt). This puts developing countries at the mercy of a global market dominated by developed countries. Could there be an alternative that could rescue us from this exploitative relationship with the developed world?

Bamboo as an alternative

Could bamboo really replace steel reinforcement?

Bamboo has potential in the future to become an ideal replacement in places where steel cannot easily be produced. Research suggests that bamboo might have some advantages over steel which could make it a good alternative for construction. According to scientists, Bamboo has greater tensil strength than steel.Ultimate tensile strength is measured by the maximum stress that a material can withstand while being stretched or pulled before breaking.

Below are some more facts about bamboo:

1. It is the fastest growing plant in the world, with recorded growth rates of up to one meter per day for some species.
2. It has existed for hundreds of years in Asia, Latin America and parts of Africa (including Ghana), all of which have different climate. Evidence that it is very resilient.
3. It is highly versatile and thrives in the poorest of soils.
4. It is environmentally friendly
5. It is cheaper than steel because it is locally sourced and grows rapidly

That being the case, you may be wondering why a country like Ghana, which has an abundance of bamboo, is yet to find a way to utilize it to our advantage? Well, ironically, many of the countries that would benefit from bamboo reinforcement also lack the resources to develop it as a viable alternative to the steel on which they currently rely.

Besides, bamboo has its own limitations.

Contraction and expansion is one such limitation, caused by both temperature changes and water absorption.  This grass is also susceptible to structural weakness caused by fungus and simple biodegradation.

From the look of things, the advantages far outnumber the disadvantages. Additionally, when well treated, bamboo is protected from above mentioned limitations, albeit at a cost (monetary).

 

If these demerits are well mitigated, this could ‘change the game’ in construction. We could reduce import fees on construction costs considerably, thereby providing affordable housing that is really affordable.

 

Written by: Daphne Amarkai Quayson

Sales & Marketing Officer, Emerald properties

 

Credits: Africa Renewal online, Arch daily architectural website.

 

Are you looking to start a business? Expand or renovate your home? Do you have financial obligations to meet? Your outlet is right over your head- That’s right, your house!!! If you’re a homeowner, you have probably seen the value in your home increase over time. Equity release allows you to tap into some of this value and release a cash sum.

This is a great option for people who own their own homes outright but wish to borrow on a long term basis using their home as collateral to expand their business, undertake home improvements / expansion, pay overseas school fees etc.  No down payment is required for this type of mortgage.  Furthermore, all fees and charges can be capitalized (added to the loan) to make it easier for the borrower.

The bank or mortgage house will advance, averagely between 60%- 80% of the value of your property and will spread the repayment over 10-15 years. However, you might not get the entire 60% or 80% depending on your income. Yes, you have to be earning some form of income to qualify for equity release in Ghana. Below is a typical eligibility criteria for one of the mortgage houses in Ghana:

 

1. Property must be residential

 

2. Applicant must pay off the loan before their 60th birthday

 

3. Applicant must demonstrate valid ownership of the property (in the form of land title certificate or fully registered indenture)

 

4. Use of funds must be acceptable to the mortgage company (Not for illegal purposes).

 

5. Loan period typically ranges from 10 years for cedi loans and 15 years for dollar loans.

 

I would be remiss however, if I do not inform you of the risk and disadvantages associated with equity release:

You may end up losing your home in the process.In the event that you default on repayment or you find it difficult to meet your repayment obligations, your property will be sold and the mortgage house will take their money out of that amount. Even though the balance will be given to you, your children or grandchildren may have lost their inheritance..

Additionally, there is an age limit to this, so not every home owner can benefit from this.

If you are a prospective home owner, you may benefit from equity release in future with the right amount of planning. Knowledge is power my friends. The Time to own a home is NOW!!!

 

Written by: Daphne Amarkai Quayson

Sales and Marketing Officer, Emerald Properties.

 

 

 

This article was first published in the May 19, 2016 edition of the Business Finder Newspaper.

House hunting can be a tiresome and strenuous task. You might think “how hard can it be”? But wait until you go through house after house with each one being either too small or too big or too far or too noisy than what you had in mind, that is when the stress begins to set in. What can help you narrow the search down?

 

1. Property portals This is the most convenient way of house hunting, and the cheapest too. It displays listings of properties from estate developers, private home owners or real estate agents. It is like window shopping, but online. Portals like Lamudi, Meqasa and a few others provide the perfect environment where house hunters meet house sellers or rentals. With a click of a button you may shop around looking out for your preferred house based on their listed features, location and pricing. If websites are listed, take the time to go on their website to find out more. This is a perfect way to narrow down your search. If everything works out right you may have a match made in real estate heaven! But you need to be careful with this one. While it is very convenient and free, it has its associated problems, for example the perfect picture you see might not be a true reflection of the real state of the house. Also fraudsters are always on the lookout surfing the web looking to prey on unsuspecting house hunters.

 

2. Real Estate Agents once you have narrowed down your search and are pretty certain of what you want, a real estate agent may come in handy. They will do the leg work, paper work and all kinds of nitty-gritty that goes into the purchase or rental of a house. At some point, you may need to go and have a look at the property you have settled on and have your lawyer look the contract over before you give the thumbs up. However, the thing about the estate agents is that the higher the price of the house the more significant their brokerage fee. More often than not,  It’s the house sellers who pay the agent,  but in the case of a rental,  the percentage fee of the agent is paid by the one who is looking to rent. So stand your ground and make sure that you are getting exactly what you want and at the right price. Some of the cheapest houses on the market are those ones marked for foreclosures so challenge your agent to be on the lookout for those.

 

3. Housing Fairs housing fairs are also a great place to house hunt. Whether you are looking to buy or to rent, this avenue will most certainly be helpful to you. Most estate developers who participate in such fairs usually have estate management companies who can assist with rentals. Additionally, such fairs give you the opportunity to interact with the sellers, compare prices and educate yourself about the industry. Some real estate developers give promotions and discounts at housing fairs so you might want to take advantage of this.

Now that you have all your options open to you, go get your dream house!!! All the best.

 

This article was first published in the May 12, 2016 issue of the Business Finder Newspaper

 

 

Written by: Daphne Amarkai Quayson

Sales and Marketing Officer, Emerald Properties

My first experience with an estate agent was not a pleasant one. I found his cell phone number by the roadside, nailed to a stick, close to a traffic light. The man who answered the call gave his name as Agya Yaw and asked my companion and I to meet him at a specified location. He was seated next to a roasted plantain seller busily munching on some roasted groundnuts when we got there. Immediately we got to him, he asked us to pay him what he called ‘registration fee’ upfront. We of course found it preposterous, but at that point we were already there and we didn’t want it to be a wasted trip. Besides he was able to convince us that he knew the hottest rentals in town. And so we paid him. When that money was safely in his pocket, he joined us in our car and we set off on our house hunt, with high expectations, confident that Agya Yaw will lead us to our dream rental home that very day. Even though we clearly stated at the onset exactly what kind of property we were looking to rent, and he specifically assured us that he could meet that need, he led us around to houses that were anything but what we wanted. Some of them were in very deplorable condition. At this point we started getting the sense that Agya Yaw had taken us for a ‘ride’. When we called him out on it, he became offended and called us ‘choosy’. He had the effrontery to appear frustrated and impatient with us, as though we were the ones who couldn’t make up our minds on what we wanted. At which point he got down from our car and off he went with our upfront money (which by the way is non-refundable), for no work done.

 

This was about five years ago when I had no clue as to what to look out for in Real Estate Agents. Since then I have learned to become less gullible. I have also gathered some experience as I am currently working in the real estate industry.

 

Agya Yaw is one of those Estate agents who fall into the category of ‘Area Agents’. While most of these agents are well experienced and know their trade very well, and can be quite helpful to home buyers , sellers, landlords and renters alike, others  are just charlatans who are only looking to make quick money whilst sending unsuspecting house hunters on a wild goose chase and then ditching them to move on to their next victim.

Real estate agents these days are generally more sophisticated. They appear younger, well educated and much more professional about their business. They are usually dressed to impress, great communicators and technologically savvy, using the internet property portals, email and social media as their modus operandi. But still, one needs to be careful with their choice of agents.

 

So how can we avoid the ‘Agya Yaws’ of this world? Here is what to do:

 

1. Investigate the Agents track record and his credibility Since real estate agents in Ghana are not yet regulated and therefore are not licensed, it presents quite a challenge  easily finding professional background information on who you are dealing with and their track record. You may have to resort to word of mouth and recommendations. Only go with those who have proven themselves to be knowledgeable, respectful to the wishes of their customers, and who have delivered on their promises.
2. Insist on a contract stating the terms of your agreement. This is very important. Your relationship with the Estate Agent should be summed up on a legally binding document to protect the interests of both parties.
3. You might want to be circumspect and part with money only when your estate agent has delivered on the rental or the property you wanted to purchase. It is only then that you may go ahead to make payment which is usually 10% of the total rent or a compensation equivalent to one month rental ( for rental) or 5% of the total cost of the property( for purchase), which is usually stipulated in the contract.
4. Sight the actual property before making a choice. Even though it might be easier to sit in your office or home and look at pictures or options presented to you by the agent through the email or whatsapp or any of the social media platforms, it is always best to insist on visiting the property and seeing it for yourself or getting someone you trust to do that in case you are abroad. It might surprise you how different the actual state of a property looks from how it is projected in the brochure or the internet.

 

When the Real Estate Agency Bill is finally passed, I believe this will give the Ghana Real Estate Proffessionals Association (GREPA) the mandate to regulate the operations of Real estate agents in the areas of licensing and streamlined operations, thereby protecting the interests of both the estate agents and their customers. And then guess what…? No more ‘Agya Yaw’ drama.

 

Written by Daphne Amarkai Quayson

Sales and Marketing Officer

Emerald Properties.

This article was first published in the April 28, 2016 issue of the Business Finder newspaper

Adenta, Oyarifa, Spintex, Ashaley Botwe, these are areas in Ghana’s capital that a little over a decade ago seemed so far away from the city centre. Most of these areas were known to be bushy and undesirable. To the extent that most people could not even imagine owning property in those areas, let alone living there.

Fast forward to today, the story is the complete opposite. In fact property value in these areas, be it a house or a piece of land has more than doubled, especially for those properties on the side of the main road. These areas now have decent roads, thriving businesses, recreational places and amenities.

You may be wondering where on earth I’m going with this?  Well, just pause for a moment and let your mind wonder to places like Aburi, Kuntunse, Pokuase, Nsawam, Kasoa and Prampram. What was the first thought that popped into your mind at the mention of these places? Let me guess, far? Villagelike? Underdeveloped? Crazy traffic?  Long drive to and from work every single day?

Granted, neighborhoods like Cantonments, Ridge, East Legon, Osu, Labone, Airport Hills, Airport Residential are almost everyone’s idea of a dream area to reside in. Such areas have been labeled as affluent or “rich peoples” areas, as most Ghanaians will put it. Unfortunately value of property in such areas is so high that it is simply out of the reach of most people. But all is not lost.

Just to quote Gary McCausland, an Irish Chartered Property Surveyor, property developer/investor, author and former television presenter, “A good location doesn’t mean the best area in town….. If you buy in the centre of the best area then you are going to pay the highest price and that doesn’t leave you any room to make a profit. A good location, for me, means somewhere on the fringes of a good area that, in time, can become part of that good area”.

This advice was meant for property developers, but doesn’t that go a long way to benefit buyers as well? Whatever extra cost the developer is hit with will ultimately affect the final price of the property. So in the outskirts of the capital, where land is cheaper, guess what?…

Needless to say, you get the property at a much cheaper cost, as compared to those in the city centre, and in the next 5 years to a decade, the value of your property will definitely go up, even double. But don’t take my word for it, ask those property owners in Adenta, Oyarifa, Spintex and Ashaley Botwe.

Other advantages of living on the ‘fringes’ of the city centre is that you experience the best of both worlds. It is not just a myth that in the outskirts, there is less pollution, therefore the air is cleaner, the area is less noisy, and food is relatively cheaper and fresher. This is actually true. So you get to work in the city centre, where all the ‘action’ is, and then come home to a serene and stress free environment.

Additionally, roads leading to such areas are now in very good condition and constantly maintained because they connect to other regions of the country. Also, some of the property developers in those areas provide good internal roads, utilities and amenities for their residents.

Actually, the longer you wait to buy, the farther away from the city centre the developments go.

So the next time you hear Prampram, Aburi, Kuntunse, Pokuase, Nsawam and the like, FEAR NOT.

 

Written by Daphne Amarkai Quayson

Sales and Marketing Officer

Emerald Properties.

This article was first published in the Business Finder, April 21 edition, in our new column, REAL ESTATE 101

 Have you ever found yourself asking this exact same question? You are not alone. Most people have a fear of mortgages and others are simply put off by it due to the following reasons:

1. Tough monthly payment spread over 15-20 years
2. Low accessibility of mortgage against high priced properties
3. Others calculate the total cost of principal and interest and conclude that it’s not a good deal because it amounts to paying three times the value of the house.

Hopefully, this article might help to allay your fears or at least address your concerns on the subject.

For starters, acquiring a mortgage gives you financial discipline. It might appear tough on the surface, especially when those deductions are going through your account every month. But see it as money that could have been wasted on other less important things like excessive entertainment or lending to others who might never pay you back.

You also get to enjoy the property even before you have finished paying for it.So it satisfies your immediate need of having a ‘roof’ over your head, a fully completed ‘roof’ at that.  It is just like paying rent every month but with the added benefit of owning the property at the end of the payment period. Sweet right?

When looking to acquire a mortgage to buy a house, some property developers give you options for properties within your income range, like a ‘shell’ unit (a house which has the exterior completed with windows, a wall and a gate and painted but the interior is left to the buyer) or an expandable unit which you may expand at your own pace.

In addition, owning a house gives you equity release. That is, the prospect of securing a loan against that house whenever you need it. This is a means of retaining use of your house which has capital value, while also obtaining a lump sum or a steady stream of income, using the value of the house.

At this point, I imagine you are smiling and nodding in agreement. But there is more.

Please do not forget that by the time you have finished paying off the mortgage in about 15 to 20 years, the value of the property would have similarly tripled earning you more money if you decided to sell it off.

Need I say more?

 

Written by Daphne Amarkai Quayson

Sales and Marketing Officer

Emerald Properties.

 

This article was first published in the Business Finder, April 14 edition, in our new column, REAL ESTATE 101

 

 

We have some exciting News for you.  On Thursday April 7, 2016, Emerald Properties published our first news paper Column, REAL ESTATE 101, in the weekly Business Finder newspaper. This is the first of many exciting articles that will be published from our company going forward.

We want our cherished customers and fans to know that we are not just here to sell beautiful homes, but also to keep them informed and updated on real estate trends and tit-bits concerning the industry.

Watch out for this weeks article!!!

“You developers, build for half the price you sell your properties for, there is no way in Mahama’s Ghana that I would buy from you guys, I would rather buy land and build in my own time”.. that was an acquaintance of mine, Kwame Chisel, vehemently protesting when I tried to make a sales pitch. Kwame isn’t alone in his doubt, he belongs to a pool of prospective homeowners who are suspicious of the build quality and seemingly  unrealistic margins.  Well, for any salesman,  objections are as commonplace and it also presents a perfect opportunity to educate and eventually convert a doubting Kwame into a believer and a willing buyer. So I sat Kwame down and had a profound chat with him while we waited for our coffee in Accra’s latest Cafe. If you are curious, here is transcript of our chat.

Return on Investment

“Kwame, I understand where you are coming from, but I also believe you are making a sweeping generalization. Yes, it may be true that some developers add unrealistic margins which inflate house prices; however, not all developers are greedy, until you have considered all the elements and peculiar dynamics of what goes into pricing, you may just be making an emotive statement rather than one from a position of facts. So Kwame, your first consideration when thinking about building or buying a house is that you should consider it as an investment; one which would not only provide you a place to lay your head or cook but one with futuristic returns. “Nii “Kpa rough eh” Kwame blurted out in Ga.”Nii, my landlord is giving me “Wahala” and you are talking about return on investment, why house be treasury bill? ”.  I literally shook my head but wasn’t deterred; I was determined to win a soul. “The devil is a liar I muttered under my breath”. “Kwame, if you would only let me finish; you would understand what I mean by return on investment”.

“So Kwame, I still insist that house purchases should be seen as investments which should provide you optimum value, what you may not be considering is the real value of your house price  as against the nominal value which for you is four walls with fittings and fixtures.  Let me break it down for you. For a house to move from design on paper to brick and mortar, you need land, building material and infrastructure i.e roads, water and electricity to make it habitable right? For some self-builders like you, acquiring the land, building materials and engaging a contractor is all that matters. Sure, you can build a house that way but what you may not have considered are the time and energy you will expend supervising contractors to ensure leakages and wastage is kept to a bare minimal. You also fail to take into account the extra cash to be spent on burglar proofs, electric/wired fencing; extra pipes and cables to connect to water and electricity. You also fail to realize the extra cost you may incur by driving on very dusty, bumpy roads. You are sure to visit the mechanic more and even your doctor. All these are costs that you would “not see”.

The Real Value

Having shown the cons of self-build, it would be important to highlight the pros of buying a house in a serviced area or gated community. In these environments, you would not have to grapple with bad or inaccessible infrastructure; security would be provided; you and your children would have access to neighbours of similar standing or like-mindedness, which would provide the perfect environment for your children to develop. These are some of the real value you would gain by buying a house, typically built by real estate developers in a gated community/serviced area. “Kwame, as for the margins, isn’t it only fair that by pooling all these resources together, the developer gets a little compensation? What you like to call “Noko-fioo”?

Just as i quizzed Kwame, our coffee arrived. “You see Kwame, you could have bought this coffee from ‘Miliki-mikuu” down the road for a cheaper price, but we walked in here because for a little extra cash, we could access free wifi, comfy seating, air conditioning and even network with other businessmen. Buying a house, typically in a serviced/gated area as against building on lands, on the city outskirts, is like buying from this café rather than from Miliki-mikuu’s. The price may be higher, but the value is greater. Kwame, are you convinced? … Kwame ??? …  Kwame was in deep thought….  Was he converted? Your guess is as good as my coffee.

Written by Cyril Nii Ayitey Tetteh

Business Development & Marketing Manager

Emerald Properties.

 

This article was first published in the Business Finder, April 7 edition, in our new column, REAL ESTATE 101

This is the first of many more to come as the Business Finder newspaper will publish an article from Emerald Properties every week going forward.

 

There has been a sharp rise in real estate in Ghana since 2000, especially in the area of housing. This is
attributed to the fact that the savvy investors are paying more attention to Africa, where the retail and residential property market is growing rapidly and dynamically in the face of instability of world economic growth.

This new surge in real estate development,  specifically in Accra, Ghana has created an avenue for investment and returns. Yes that’s right!, if you invest in real estate (especially in high end real estate) and you play your cards right, you could generate a lot of money. Real estate can be the best traditional investment one could ever make, and here are but a few of the reasons why:

1. Real estate generates higher yields thereby outperforming equities.

2. Most people feel more in control of their investment as they can see and touch their investment

3. People will always need accommodation, and expatriates and foreign investors will always come and go and will need a place to live while conducting business in the country, so even in a recession the housing industry remains the least affected as compared to other sectors like the stock market.

Watch this space for more information on real estate and housing trends in Ghana.

Contact Emerald Properties

info@emeraldpropertiesgh.com

+233 302 78 1857, +233 245 709 285, +233 202 222 331, +233 242012727

When one invests in real estate, the goal is to mature one’s money in order to have extra in the future. One has to be strategic in their thinking by making sure they generate enough profit to be able to cover everything from the costs it takes to own the real estate investment as well as the taxes to be paid on it.

Let’s have a look at the game of Monopoly as a basic real investing simulator. To win, you have to be very money savvy. Gauging and being very analytical in considering what real estate to buy in monopoly land in addition to leaving enough cash on hand could make you a winner. On the flip-side, you could lose if you buy every real estate venture you seem fit without thinking and saving enough money to pay for other financial obligations. That leaves you out of cash and no cash means you have to start selling off the assets you acquired with a major price cut from the original price you bought them.

Take this principle and apply it to real world. Real estate investing is a real life monopoly. Buy properties, avoid bankruptcy, and generate rent so that you can buy even more properties. Simple? Maybe but remember “simple” doesn’t always mean “easy”. If a mistake is made along the way, you could end up in a huge financial loss. So how do you make sure you get your monies worth when real estate investing? Check out 4 types of real estate investing that can help you become a real estate investor guru.

1. Cash Flow Income: This type of real estate investment focuses on buying a real estate property, such as an apartment building or house, and operating it so you collect a stream of cash from rent, which is the money a tenant, pays you to use your property for a specific amount of time. Cash flow income can be generated from apartment buildings, rental houses, office buildings, well-run storage units, car washes and more.

2. Real Estate Appreciation: This is when the property becomes more valuable due to a change in the real estate market. This type of change could either be that the land around your property is becoming busier with an inclusion of a development such as a major shopping center close by, or certain upgrades you may put into your property to make it more attractive to potential buyers or renters. Real estate appreciation can be tricky and is riskier than investing for cash flow income.

3. Real Estate Related Income: This is income generated by “specialists” in the real estate industry such as real estate brokers, who make money through commissions from buying and selling property, or real estate management companies who get to keep a percentage of rents in exchange for managing and maintaining a property.

4. Ancillary Real Estate Investment Income: For some real estate investments, this can be a huge source of profit. Ancillary real estate investment income includes things like laundry facilities in low-rent apartments or vending machines in office buildings. In effect, they serve as mini-businesses within a bigger real estate investment, allowing you to make money from a wide collection of customers.

 

Contact Emerald Properties

info@emeraldpropertiesgh.com

+233 302 78 1857, +233 245 709 285, +233 202 222 331