The Chief Executive Officer of Spektra Global, Mr William Halm has urged investors to take advantage of the country’s widening housing deficit to create wealth through the real estate sector.
He said the housing deficit, which currently stood at 2.7 million and a growing middle class in the country, had created a pressing need for decent accommodation, something investors could take advantage of.
He cautioned investors to use innovative management strategies such as monthly and quarterly rent advance payment to attract prospective tenants instead of going for the two years advanced payment which is the normal practice among real estate investors in the country.
Mr Halm was speaking at the just ended GHL Bank Housing fair, which was held on the theme ‘creating wealth through real estate Investment’.
“’Build to rent’ is the most popular form of real estate investment in Ghana and can catapult one to amassing great wealth aside other alternatives such as ‘build to sell’ and ‘buy-renovate-sell’ which is not popular in our part of the world,” he stated.
“In Ghana, people are willing to pay for solutions that solve a problem or meet a need and that promote wealth creation. So anyone can join the select few who are building by starting small, building and renting out one house at a time supported by a favourable rent payment regime and steadily progressing to two, and then three to strategically create wealth over time,” he added.
Location is key
Mr Halm also pointed out that location was key in real estate development as it determined the value of the property and puts a cap on the rent one can receive for a property.
“The design of the building can also cause prospective tenants to choose a property over the other; hence the need to factor in design strategy which gives more rental value and maximum returns on investment,” he explained.
The CEO also advised real estate owners to insure their properties against losses because the only time a loss is made in real estate business is when the property is lost.
The Head of the Corporate Communication and Brand Management at the GHL Bank, Mr Kwamena Budu, for his part said the fair was organised to bring all stakeholders in the real estate together to create convenience for home seekers and to meet their housing needs.
“GHL has a heritage in terms of mortgage financing and we are able to assist home seekers, as well as advise clients on the right steps to land property acquisition,” he said.