- The best shot many people in Ghana have at having a decent place to stay is by renting an apartment
- Nevertheless, renting a place is an arduous task for many people because of the one or two years' rent advance that landlords typically charge
- Apart from buying a house with cash, there are more lenient ways people can acquire homes, such as considering the rent-to-own arrangement
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In Ghana, the government has introduced the rent-to-own arrangement to assist low-to-middle-income earners in acquiring decent homes. In this arrangement, prospective homeowners can lease properties with the opportunity to buy them after a period of time. There are two contracts in a rent-to-own system: a lease and an option to buy at a later time.
When you rent to own a property, you agree with your landlord to pay a higher rent than the market rate in exchange for having a percentage of your rent payments applied to the down payment on the property.
Consider the scenario when you want to purchase a home but lack the creditworthiness to qualify for a mortgage. You lack the necessary down payment of, say, Ghc 100,000. You and your landlord agree that Ghc5,000 from your monthly rent will go toward purchasing the property. Therefore, the landlord will get GHC 100,000 from you in 24 months.
To offer suitable rental housing for the nation's public sector employees, the government, through the National Housing and Mortgage Fund, collaborated with GCB Securities Limited to establish the Affordable Housing Real Estate Investment Trust (REIT).
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Public servants can rent quality, reasonably priced homes under the program for 15 to 20 years, after which they pay a residual value and become the property's owner. Ghanaians in Accra can choose from rent-to-own properties for studio apartments, one-bedroom apartments, and two-bedroom apartments.
Ghanaians interested in the rent-to-own initiative must fill out an application form and print a mandate form from the website of the Controller and Accountant General to authorize deductions from their salaries.
How Low-Income Earners Can Purchase Houses in Ghana Without Breaking The Bank
In a related story, YEN.com.gh wrote about how low-income earners in Ghana can buy homes without sweating it. The main concern of many low-income earners in Ghana is how they can afford houses.
Many have given up hope that it will ever happen, and some are waiting to utilize their retirement benefits to purchase one. However, buying a home need not be an impossible task. There is a solution available for everyone, regardless of their financial situation.
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