Most Ghanaians who buy luxury houses usually pay cash, the Chief Operations Officer of Ghana Home Loans, Kojo Addo Kufuor has revealed.
There is a perception that most of these luxurious houses that are owned by Ghanaians are initially funded by mortgage providers and later paid in instalment by the to- be- owners.
Some of the luxury homes range from between $500,000 to over $1 million in parts of Accra.
Speaking on the Citi Breakfast Show, Mr. Addo Kufuor revealed that “more local people are paying cash for high end houses going for over half a million dollars.
“A lot of people who buy these units tend to pay cash. As an institution, we have a very good view of both ends of the market.We don’t finance a lot of the high end stuff, but when we speak to the developers who build these things, they will tell you that the buyers finance these things through cash,” he further explained.
Mr. Addo Kufuor however clarified that since” the rental market is not great,” most of the individuals who patronise the luxurious buildings have resorted to buying the houses to “live in themselves.”
He said the house owners, in some instances also decide to “sell it out and use the money somewhere else or decide to lock it out and wait for a better day.”
Mr. Addo Kufuor pointed out that the ancient times where prospective tenants came onto the market and were willing to pay 2 or 3 years advance upfront is becoming increasingly rare.
According to him, most individuals have in recent times resorted to paying 6 months advance and later renew their contract after the 6 months have elapsed.
He explained that most of the landlords in most cases accept such offers “which in three or five years they wouldnt have entertained” because they know the tenants will be there longer and will not just want to lock up their capital net two rental deposit”
Ghanaians takeover luxurious houses
Dr. Kufuor also revealed that most of the luxurious houses in the country are owned by Ghanains.
Most of these luxurious houses and apartment were earlier reported to be owned and occupied by wealthy foreigners with a few locals being part of this group.
However Dr. Kufuor dismissed such reports, insisting Ghanaians now occupy most of these houses.
“A lot of them are locals, there are more locals than you think. The local participation is quite significant. higher than you will think,” he said.
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By: Marian Efe Ansah/citifmonline.com/Ghana
Follow @EfeAnsah