Most Ghanaians are priced out of home ownership, as a result of multiple factors, including (but not limited to):
- high property prices,
- rate of appreciation of prices far out-pacing salary growth,
- high unemployment rates,
- low income levels,
- late employment,
- etc.
Your biggest bet as serious unqualified prospective buyer is to join forces with your spouse or immediate family members (children, parents or siblings, but not your extended family members or friends) to achieve homeownership on individual low incomes.
A. BUYING ON LOW INCOMES
Joint property buyers purchase a property together, with two or more individuals sharing the ownership, costs, and responsibilities, such as a couple, or immediate family members. This arrangement allows for greater affordability and increased purchasing power, but requires transparency and mutual trust.
Key aspects include sharing financial responsibilities like the mortgage and maintenance, but also a shared liability for the loan if one party default.
B. BENEFITS
Cost Sharing:
Buyers can combine their finances to make a property more affordable and accessible.
Increased Buying Power:
Pooling resources allows for investment in larger or more valuable properties that might be out of reach for an individual buyer.
Shared Responsibilities:
The financial burden of maintenance, property taxes, and other upkeep is shared among the owners.
Diversified Risk:
The financial risk is spread across more than one person, reducing the burden on any single individuals
C. DRAWBACKS JOINT PURCHASE WITH US
Financial Liability:
All joint owners are typically liable for the entire mortgage repayment, so if one person defaults, others may have to cover the shortfall.
Disagreements:
Friction can arise from different lifestyles, attitudes, or financial goals. Disagreements over selling or major decisions can be difficult to resolve.
Complexities:
Less suitable mortgage options may be available, and lenders might impose additional conditions.
Legal and Tax Issues:
Ownership structures can complicate tax obligations, which should be clarified with a tax professional.
D. KEY CONSIDERATIONS
Consider these before choosing to buy together with someone else:
Transparency:
All parties should be transparent about their financial situations, including income, debts, and credit records, as one person's poor credit can impact the entire application.
Formal Agreements:
A written agreement is crucial for outlining contributions, responsibilities, and what happens in various scenarios, such as one person wanting to sell.
Legal Advice:
It is highly advisable to seek legal counsel to ensure the purchase is structured correctly and all potential issues are addressed upfront.
E. BUYING JOINT WITH US
We can allow up to eight (8) persons with low incomes below our GHs5,000 minimum threshold to join forces to bring their qualifying incomes far above the GHs5k figure.
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