Mr. William Halm made this assertion at the GHL Housing Fair, which was on the theme: “Creating Wealth through Real Estate Investing.”
He said owing to the massive housing deficit in Ghana, coupled with the needs of a growing middle class, investing in Real Estate has become a viable way to generate wealth.
“In Ghana, people are willing to pay for solutions that meets a need, and that promotes wealth creation”, he stressed, adding, that with a housing deficit in Ghana at 2.7 million, according to the 2010 Housing and Population Census, there is an urgent and pressing need for decent accommodation to meet the needs of people.
“This means only a few people are building houses, and you can join this select few by starting small, for example, building and renting out one house at a time, and steadily progressing to two, then three to strategically create wealth over time,” he stated.
“’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 like ‘build to sell’ and ‘buy-renovate-sell’, which is not popular in our part of the world.”
According to Mr Halm, the number one strategy in real estate is location as it determines the value of a property and puts a cap on the rent one can receive for a property.
Another strategy to consider, he mentioned, is the design which can 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.
Thirdly, he recommended that using innovative and effective rental cycles like monthly, quarterly rent advancement, would help to attract tenants instead of going for the two years advanced payment which is the norm in the Ghanaian real estate industry.
He advised participants to insure their properties against loss as “the only time a loss is made in real estate is when the property is lost.”
Mr Kwamena Budu, Head of Corporate Communication and Brand Management of GHL Bank, stated that the fair is organized partly to bring all the real estate agents together to create convenience for home seekers and to meet their housing needs.
Mr. Budu indicated that “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.”
Speaking on the need for the seminars, he said: “we believe in giving a total experience, hence the seminars are to add value to the fair as topics discussed are relevant to the times and answers questions on people’s housing needs.”
Participants at the seminar were happy with the outcome and declared it insightful.
“I have come to the realization that the most profitable way of acquiring wealth is building to rent and also to industrialize the rented building,” stated Ingrid Akafo.