Ghana woos diaspora investors with lucrative real estate opportunities

Discussants at the maiden Ghana-Diaspora Home Purchase Expo have called on Ghanaians and Africans living abroad to invest in properties, including real estate rather than bonds or the capital market.

They maintained that owning property in Ghana offered a valuable investment opportunity with guaranteed high returns, surpassing traditional investments such as bonds and the capital market.

The call for Africans in the diaspora to invest in the real estate industry dominated discussions at the opening of the two-day Ghana-Diaspora Home Purchase Expo on the theme; “Our homes, our investment, our heritage,” in Accra last Thursday

The expo aimed to connect Ghanaians and other blacks in the diaspora who are interested in relocating or investing in properties with industry experts and service providers under one platform.

It was also attended by financial institutions offering mortgage facilities, insurance companies and expert lawyers in property investment among other professional bodies in the sector.

Exhibitors are Devtraco Woodlands, More Cribs, Royal Golf View Luxury Apartments, Jade Homes, among others.

The event was sponsored by Nilex Properties and other corporate bodies.

Significant benefit

A tax consultant, Fred Awutey, stated that investing in properties in the country came with a significant tax benefit due to the absence of taxes until the property was sold.

However, he said once the investment was used for trading instead, any profits made were to be subject to taxes.

“On the other hand, purchasing a property that appreciates in value over time remains tax-free. Beyond the property rates collected by district assemblies, investments in properties are not subject to taxes in Ghana,” he said.

Golden opportunity

A finance and risk expert, Felix Kyei-Mensah, said investing in properties in Ghana was a golden opportunity compared to other West African countries, offering a unique combination of potential for high returns and relatively low risk.

That, he explained, was due to Ghana's stable socioeconomic climate, characterised by a growing economy, a relatively stable political system, and a favourable business environment, as well as its highly competitive environment which drove innovation and growth.

“It is golden to invest in assets that appreciate such as real estate properties, land properties, buildings, among others. What we need to do is to put our money where we are going to get the most out of the investment,” he said.

Valuable investment

The Legal Director for Nilex Properties, Alex Osei-Owusu, stated that owning a property in the country offered a two-fold benefit, a place to call home and a valuable investment opportunity.

He said investors must carefully weigh their potential returns against the risks involved, considering factors such as market volatility, economic conditions and industry trends to make informed decisions.

He explained that the risk-return principle was a fundamental concept in investing, dictating that higher risks typically yielded higher returns, while lower risks generated lower returns, and that investors must strike a balance between their risk tolerance and return expectations.

“Investing in the capital market, such as treasury bills and bonds, leaves investors uncertain about their returns until the company's year-end profits are announced.

“Even when companies turn a profit, dividend payouts are not guaranteed, as they are determined by the company's directors.

Research reveals that Ghana boasts the highest rental income globally, with capital appreciation of houses and real estate units ranging between seven and 12 per cent annually,” he added.