Yearly Archives: 2019

The Government's Affordable Housing and National Mortgage Scheme:A Good Example of Public-Private Partnership and Matters Arising.
The Government of Ghana announced plans to implement some interventions in the housing and housing finance markets in its 2019 budget last year. A GH¢1 billion mortgage fund was to be established to leverage private capital to provide affordable houses for the populace. The fund aims to expand access to housing and deepen the local mortgage and construction finance market to help bring down the housing deficit, which is estimated at 1.7 million units. More
Outright purchase vs Mortgage
A personal mortgage enables people  who want to buy or build their dream home and pay back their loan over a long term. To help you achieve this important life ambition most financial institutions in Ghana, offer various home loan solutions to thier  customers. A mortgage is basically a loan from a financial institution secured with property collateral. More
Leases in Ghana
A lease is an interest in land which is created to last for a fixed period. This means that every lease has a specific date on which it commences and a date on which it must expire.  More
Empirical evidence gathered suggests that, real estate typically offers an attractive investment with a moderate risk. Real estate is widely known for providing predictable and sustainable cash flows and continually enhances shareholder value through the expert manageme... More
Scrap the Rent Tax and Maintain the Real Estate Sales Tax
After over 3 decades of policy vacuum, characterized by piece-meal attempts to recognize housing in some policy documents by succeeding Governments, a new National Housing Policy was promulgated in 2015. This article argues that the 8% existing Rent Tax should be scrapp... More
Is there a Role for REITs in Developing the Real Estate Investment Market in Ghana?
The real estate investment and finance markets in most developing countries are generally undeveloped, and Ghana is no exception. Housing for instance is usually financed by individuals and households using “sweat equity” over a period of time, often between... More
Why do Landlords in Ghana charge Two-Years’ Rent in Advance? Neoclassical and Institutional Perspectives (Part II)
Introduction In part one of this article, we explored a neoclassical analysis of the rent in advance phenomenon in Ghana. While that analysis is valid, it assumes perfect information between landlord and tenants. In the real work, there is unequal information between la... More
Government Agenda to expand the Tax Base; From the Real Estate Perspective. Is TIN The Ultimate Element Missing?
The government’s effort to widen the tax base, in recent times, has seen a robust drive to get all income-earners to acquire a Tax Identification Number (TIN). A very laudable effort, if Ghana is to ensure good tax mobilization for development. The TIN, accordingl... More
Why Housing Minister Atta Akyea must hasten slowly in touching SSNIT Pension funds for ‘housing’
Housing deficit in Ghana is estimated as about 1.7 million affordable housing units. A lack of development finance has been identified as one of the limitations to affordable housing delivery. In an attempt to reduce the deficit, the Minister for Works and Housing, Lawy... More
Revenue Mobilization and the Politics of Real Estate Taxation in Ghana
Fiscal policy to some extent if not large is influenced by political ideology. The previous government led by the social democrats - NDC Party – was famous for excessively taxing Ghanaians. During their regime, two real estate taxes – the rent tax and real estate VAT – were introduced. The Ghana Real Estate Developers Association (GREDA) indicated at various functions how these taxes hurt the market, but to no avail. However, they caught the attention of the property-owning democrats – NPP party – who characterized these taxes as nuisance taxes. More