Why You Should Or Shouldn't Buy a Rental Property In Accra

As Accra's working population increases, the rental market benefits more, leaving behind a deficiency that has morphed into a full-blown rental crisis in the Metropolis. Savvy investors are increasingly interested in investing in real estate in Ghana because of rent inflation. The interesting thing is that these investors are interested in investing in both short-term and long-term rental properties. 

Meanwhile, the once-affordable dream of homeownership in Ghana has become a distant mirage for many families in Accra, forcing them to seek refuge in the rental market. Whether it's a quick flip to capitalise on rising property values or a strategic build-up of a rental portfolio, the potential rewards are undeniable. More so, the land itself has value; even if the home in Accra needs to be sold, the value of the land will increase over time.

5 Reasons You Should Buy a Rental Property in Accra

1. High Rental Yields

Accra has one of the highest rental yields in Africa, making it an attractive investment for landlords. The average rental yield in Accra is around 8 - 11%, which is significantly higher than other major cities in the region. Investing in rental properties in Accra is like discovering a hidden gem, a place where property ownership can truly pay off. The city's rental yields are among the highest on the African continent, a glittering jewel for savvy investors in Ghana compared to the more modest returns elsewhere.  

2. Potential for Income Generation

Investing in rental properties in Accra is a great way to generate a passive income that steadily increases. That's the beauty of owning a rental property. It's not a get-rich-quick scheme but it is an investment that promises cash flow. It will generate cash flow every month - all other things being equal and likely be profitable. The yield margins may not be significant early on, but real estate is generally a long-term investment. As long as the property in Accra is in good condition, the steady income will continue to flow.

3. Potential for Property Appreciation

Buying a ‘Ghana house for rent in Accra’ isn’t just about purchasing the home, which depreciates over time. It’s also about buying the land, which is fixed. Most of the suburbs in Accra, especially in neighbourhoods like the Airport Residential Area, have developed all the land. This is why even a quarter plot of land will still sell for thousands of dollars. With homes and land at a premium, even homes in poor condition in agood block will increase their value over time.

4. Diversification of Investment 

Investing in real estate in Accra is a great way to diversify your portfolio, and it’s the type of investment that grows over time. You only need to start by buying a 2-bedroom house for rent in Accra and wait for the income to build over time. Generally, investing in real estate is much safer than investing in other investments like stocks. Very rarely have housing markets completely collapsed. Remember, investing in rental properties in Accra provides flexibility since it can eventually become your permanent home.

5. Strong Demand for Rental Properties

Accra is a rapidly growing city with a large population of young professionals and families. This has created a strong demand for rental properties, making it easy for landlords to find tenants. The simple reason is that people are looking for more houses to rent in Accra than houses for sale, which has significantly impacted the rental market. The high demand for rental properties in Accra has resulted in competitive rental rates, providing landlords with a steady stream of income.

5 Reasons You Shouldn’t Buy a Rental Property in Accra

1. High Cost of Entry

2. Dealing With Tenants

3. Lack of Transparency

4. Legal Challenges in Property Disputes

4. Property Management Costs 

Conclusion 

What makes investing in rental properties in Ghana so attractive is its versatility. It can create cash flow and passive income. It can be used as collateral to secure funds for future investments. With land and housing scarcity, the income will likely increase long-term and help with a more comfortable retirement. More importantly, the land itself has value; even if the home in Accra needs to be sold, the value of the land will increase over time.