by Oct 28, 20220 comments

If becoming a homeowner is on your bucket list for the year, then you have come to the right page. Keep reading to find out exactly what needs to be done to achieve that dream.

Homeownership is a core component of the young adult’s dream in Ghana, at least for most Ghanaians. But becoming a homeowner often seems like an unattainable goal for some people. Having a tight budget, and knowing that a home is probably the largest single purchase you’ll ever make, makes your idea of becoming a homeowner implausible.

Whether you are slightly ready or not to purchase your first house, becoming a homeowner on a shoestring budget isn’t as far-fetched as you think. With careful planning and making sure you are taking all the necessary steps, you can save enough money to buy your dream house.

Before diving into the real estate market, you need a plan. Think ahead and consider every detail that might impact your savings.

Learn how you can save money when buying a home;

1. Speak with an experienced real estate agent

If you are just beginning your home-buying journey buying your second home, you need the services of an agent or real estate professional to work with. You need help to figure out how much home you can afford and be able to get a realistic expectation of what your down payment could be. A good real estate agent who knows the market can help you navigate the processes and save you time and money. With their assistance, you will know the different types of houses on the market for sale, these include.

  • Houses being sold by Developers
  • For sale by owner
  • Exclusive with Agents
  • Private developers

2. Contact a real estate developer.

Working with agents does help but contacting a developer makes the work much easier. Real estate developers in Ghana have a 360 approach to proving all your housing needs. They provide you with your desired home within your preferred location at a well-negotiated price which is sometimes spread across for easy payment. Real estate developers often have trained sales consultants who can guide you along the buying process. They often provide you with industry related as well as salient investment advice for informed decisions.

3. Decide on a budget

When you start desiring a house, you need to also start saving for it. Budgeting is the first step in the process. If you don’t know where your money goes every month, it is impossible to disburse money for your down payment. Get out your financial records, bank statements, and credit card payments, sit down with them and discover where you are spending the most money.

How much are you willing to spend to purchase a house? 

How much do you spend monthly on necessities like rent, loan payments and utilities? Note how much you also put aside each month for nonessentials like entertainment, restaurants, etc. Look for areas where you can cut back. In Order to set a realistic budget, you need to decide on what amount you can comfortably afford. You can make this decision after you have categorised your expenses. By figuring out how much house you can afford, you can decide on how much you need for a down payment. Calculate your total housing costs, which include mortgage, insurance, property taxes, and homeowners association fees. Make sure you budget a certain dollar amount to put away for your down payment each month. It is exclusively advised to save money in dollars here in Ghana. Dollar investments are good for diversification purposes. It is a good strategy, and houses are sold in dollars. Divert all that extra money into your savings account.

4. Downsize your spending – implement whatever cuts you can make on your expenses. 

Timing for buying a house in Ghana is of the essence to enjoy some level of financial peace. Buying a house is a big deal if you don’t have money or resources to pay for the property. It is, therefore, a good practice to access your finances and knows when you are ready. You can start by accruing an emergency fund for yourself until it reaches between 3 to 6 months of your expenses. Once you have done this, you are assured of financial backup support, and you are ready to use readily available funds to move forward with the purchase.

If possible, try to make a plan to save each month after house/mortgage payments. A sweet spot of 25% of your monthly income looks ideal. You do not want to save all your money, or you leave yourself unprepared to face emergencies or fail to embrace new opportunities. Do this by multiplying your income by 0.25 to find your monthly savings amount. You can also decide to start saving with a bank or investment firm and then increase your contribution as you progress. After the above-listed are satisfied, you may make a down payment to reserve a unit or units. The down payment indicates how serious you are about acquiring the property. You may decide to take a loan from the bank, a mortgage or use your own cash to finance the purchase of your home/apartment.

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