Home Improvement Tips: How to Budget and Finance Your Home Improvement Project

Man by nature is always hungry for new things. English Psychologist, Joanna Field says, "It's weak and despicable to go on wanting things and not trying to get them".

Therefore, if you are tired of your home design and wants to give that old home a facelift, then this is the time to act.

Below are some tips for you on how to improve your home.

Start thinking about your budget.

If you only rely on one or two quotes you risk paying too much for the job.

You should get some home improvement estimates from several companies to get a feel for how much you should be paying for the home improvement job.

You will also get a good idea of what to budget for the home improvement job. It is important to keep a budget, as it keeps you from overspending and within budget. 

If your home improvement is a big project, you should consider getting a loan from loan companies to finance your home renovation project.

This type of financing is now easier than ever to apply for.

 If you are working then obtaining financing should not be too difficult as long as you can afford the repayments on the loan.

Before approving the loan, loan companies usually need to check your credit and see if there are any defaults or non-payment in your credit report. 



The easiest way to search for home improvement loans is to have a broker search for the best possible deals and loan providers.

Ask the broker to seek out which loan company’s offer the best deal on the amount you would like to borrow.


No matter what type of renovation you want to do, most loans can cover it.

 Loan companies do ask you to specify the type of improvement you want to do to make sure you are not over borrowing.

They give out secured loans, which are loans secured on your house.

However, if you have an excellent credit score, you are qualified to apply for unsecured loans.

Entering into any loan agreement with a loan company is a serious responsibility and you have to make sure you are on time with your payments and do not fall behind, or your house is in jeopardy. 

Taking out a loan is a serious decision and something you should give serious thought to.

 Once you decide to apply, your improvement project will be underway, and you will have a beautiful home to look forward to. By Hannah Owusu Boamah-PE-Online Editor

Investment Tips: Why Africa

Investing is more like grocery shopping and less like rocket science, so it’s amazing that a lot of the information on investing reads like a series of calculus equations. 

Investment lingo sometimes seems too technical, maybe that’s one reason why so few people know about the opportunities in Africa. 

It is worth noting here that there are generally two types of people that invest: institutional investors and retail investors. 

 Institutional investors are people that invest on behalf of large institutions like banks and operating companies and deal with large pools of money. 

Retail investors are individuals that invest for their own personal benefit or small business. 

 It’s safe to say that the lack of knowledge on investment opportunities in Africa is more widespread among retail investors.

 Many people don’t know what to invest in when it comes to Africa.

While Africa still features a lot of starving children with flies circling about their heads; nowadays, Africa also features about 10 stock exchanges according to bizcommunity.com. 

The market capital has risen from $5.5 billion in 1988 to $569 billion in 2005 (excluding South Africa). 

  In addition, small investors are able to access Africa’s growth potential through the T. Rowe Price Africa and Middle East Fund (nasdaq: TRAMX), launched September 2007.

The SPDR S&P Emerging Middle East & Africa (nyse: GAF) exchange-traded fund is another option according to John H. Christy’s commentary on Forbes.com.

 Africa can supply the demand for commodities.  Think of Africa’s natural resources. According to Nile Capital Management, 10 percent of the world’s oil reserves and 40 percent of the world’s proven gold reserves are in Africa. 

In addition, Africa contains 90% of the world’s platinum reserves, about 80% of its cocoa and diamonds, 60% of its phosphate, 50% of its bauxite and chromium reserves, 20% of its titanium, and close to 15% of its oil and natural gas. (Source: US Geological Survey, Credit Suisse).

Big multinational companies are spending big money to build up Africa’s infrastructure.

For example, diamond industry leaders De Beers recently signed a deal to mine diamonds in Botswana, including a commitment to build a diamond sorting facility.  And the Infrastructure Consortium for Africa (ICA) reported on Jan. 18, 2011 that IBM will be joining Bharti Airtel (which services 16 African countries) to improve its telecommunications infrastructure.

 There are African companies operating at a profit in Africa. Africa’s total stock market capitalization now exceeds $1 trillion.  Companies like telecom enterprise MTN and beer maker South African Breweries (a subsidiary of SABMiller) are relatively profitable. 

From 2002 to 2007, African companies were more profitable than their counterparts in Asia; the average annual return on capital of African companies was 65 percent to 70 percent higher than that of comparable companies in China, India, Indonesia, and Vietnam according to economists Paul Collier and Jean-Louis Warnholz in their article Now’s the Time to Invest in Africa featured on the Harvard Business Review.

 There are a lot of young people and young families in Africa. The workforce in Africa is young and energetic.  More so, African governments don’t have to dedicate a lot of resources to elderly care and pension plans.

 Domestic demand is set to rise as more people in Africa move up the economic ladder.

 Consumer spending for goods and services in sectors like telecommunications, transportation, wholesale and retail is increasing. 

Africa’s consumption has grown by $250 billion since 2000 according to the Global Insight United Nations Conference on Trade and Development, McKinsey Global Institute.  Estimates show that 85 million African households earned $5,000 (USD) or more in 2008.

The numbers of households with discretionary income is projected to rise by 50% over the next ten years, reaching 128 million. By 2030, the continent’s top cities could have a spending power of $ 1.3 trillion (USD). 

African households spent $860 billion (USD) in 2008. And African consumers as a class will spend about $1.4 trillion (USD) in 2020.

 Politically-motivated violence is not good for business and Africans are starting to see this. Functioning democracies in Ghana and South Africa are two cases in point.

 In 2007, FreedomHouse.org reported that out of the 48 countries of sub-Saharan Africa, 11 were rated “Free” for their performance in 2006, 22 were rated “Partly Free” and only 15 were rated “Not Free”.  In essence, about 63 percent of Africa’s population now lives in countries designated “Free or Partly Free”.

 Economic growth is in the air in Africa.

The World Bank projects that nine out of the 15 countries with the highest rate of 5-year economic growth are in Africa.  According to the World Bank’s Global Economic Prospects 2011, released on January 13, the GDP growth rate for Sub-Saharan Africa was projected at 4.7% for 2010, from a 1.7% low in 2009, and set to increase to 5.3% in 2011 and 5.5% in 2012. 

This compares to negative growth for the United States in 2009 (-2.6%) and weak recovery in 2010-2012 (2.8%, 2.8%, and 2.9%).  Notably, the best growth rates were for countries other than South Africa, Africa’s largest economic power.  Rates for South Africa, with a negative rate of -1.8% in 2009, are projected at 2.7% for 2010, 3.5% in 2011, and 4.1% in 2012. Other countries in the Sub-Saharan region, by contrast, grew an average of 5.8% in 2010, with 6.4% and 6.2% rates projected for 2011 and 2012 respectively.

 Low Debt-to-GDP ratio in several African countries. For example, in 2010, Nigeria had a debt-to-GDP ratio of only 18 percent, compared with Greece whose debt-to-GDP ratio was more than 100 percent. 

The point here is that a low debt-to-GDP ratio represents an economy that produces a large number of goods/services and in turn profits that are high enough to pay back debts.  Governments aim for low debt-to-GDP ratios in order to position themselves to pay back public debts– a good sign for a small investor or SME that decides to participate in a program that is wholly or partially paid for by public funds.

 Stocks in African exchanges are comparatively cheaper. 

 The average price-to-earnings ratio for African companies is about 8 to 9 percent compared with the S&P 500, which has an average P/E ratio of about 15 or 16 percent according to Larry Seruma, chief investment officer of Nile Capital Management. 

Investopedia defines the P/E ratio (price-to-earnings ratio) of a stock (also called its “P/E”) as a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. P/E is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower P/E ratio.

 It is kind of easy to invest in African stocks.

For example, investors in the US can trade in real-time on the Johannesburg Stock Exchange, and other exchanges simply require an emailed request to a broker.  African exchanges have improved their trading systems and governance, and brokers are following suit to improve their quality of service and deepen their knowledge.

 Gain an appreciation for the difference between risk and volatility.

Volatility generally indicates the level at which an investor may experience huge price swings, but this doesn’t always translate into risk.  Risk means an exposure to the chance of injury or loss.  The S&P 500 is certainly less volatile than stock markets in Africa; nevertheless, a big reason investors invest in the first place is for the return… the “food”.  

According to AfricaBusinessSource.com, the risk-adjusted return of the S&P 500 was not as attractive as the return in most African stock markets over the past five years (in effect, the risk-adjusted return of the S&P 500 was a less desirable slice of “bread”).

African politicians and professionals are beginning to question the continent’s dependence on foreign aid and now see other forms of foreign investment as healthier than foreign aid.

 For example, economist Dambisa Moyo argues in her book (a New York Times bestseller), Dead Aid: Why Aid Is Not Working and How There is Another Way for Africa, that foreign aid has not worked for Africa because it creates a culture of dependency and corruption and African governments should phase it out. 

 President of Rwanda, Paul Kagame, agrees with Moyo and has taken steps to demonstrate his increased focus on other forms of foreign investment: a) buying a copy of Moyo’s book for every member of his cabinet; b) penning an op-ed in the Washington Post titled Why the U.S. Needs Africa on Sept. 21, 2009 in which he states that “Africa and the United States may be on the verge of a new partnership, not one of dependency and aid but one of shared ideas, vision and investments that increase our mutual prosperities.”

 Africa is untapped… Ozii Obiyo, international business consultant, used the term “untapped” to describe Africa’s potential for positive growth across many sectors in a recent interview.  “Untapped” is especially useful when describing Africa as that term is used to describe the process of collecting palm wine from a palm wine tree.  Palm wine is a ceremonial drink rich in tradition and often used to celebrate success and show respect.

 Africa features the world’s last frontier market. Frontier markets are like small gardens compared to the big farms of emerging markets a la Brazil, India, and China.  The equity markets and capital markets in Africa tend to be too small or too illiquid. 

For example, as of July 2008, the Uganda Securities Exchange in Kampala listed just nine companies and trading took place only about 11 days a month; and the exchange’s average daily volume was $200,000.  Nevertheless, equity flows to Africa doubled in the years between 2004 and 2008 to $7 billion (USD) per year according to economist and financial strategist Olivier Lumenganeso.

 Africa’s agriculture is ripe for harvest. McKinsey Global Institute estimates that Africa has 60% of the world’s uncultivated arable land.  The continent’s agricultural output could increase from $280 billion (USD) -the estimate as of July 2010- to $ 500 billion (USD) by 2020 and as much as $880 billion (USD) by 2030.

 Helping Africa meet its electricity needs can be the “light at the end of the tunnel” for small investment opportunities that have long-term benefits. Infrastructure development projects are usually the type of investment opportunities reserved for big, institutional investors and project finance endeavors; however, Africa’s need for electricity is so deep that even smaller investors can offer solutions, albeit, on a much smaller scale.  There are a lot of rural communities in Africa that are far removed from electrical grids. Individual systems, small geothermal plants, or diesel generators can be supplied to these communities under carefully crafted arrangements that can turn a profit for the investor/provider.

  The modularity of renewable energy offers investment opportunities in Africa for small investors and small to medium businesses. Renewable sources of energy can be modular in their production and delivery; and Africa is blessed with an array of renewable sources of energy like wind and solar.  As an illustration, the solar panels used to produce solar power do so by converting sunlight into electricity and these panels consist of a group of solar cells that perform the energy conversion on a cellular level (e.g. each cell can produce 1-2 watts of power).  To produce viable amounts of solar power that can power up a home and then a group of homes, the cells are joined to form a panel and additional panels can be joined for additional power.  The modularity of solar power allows small investors to invest in particular steps in the production process or supply chain.

 Africa is, of course, a whole continent and investors can use certain mechanisms to categorize each country in Africa based on the country’s risk/reward potential. For example,  a report by McKinsey & Co articulated a 4-part framework for strategizing investment opportunities in Africa. The framework places each African country in one of four categories based on level of economic advancement (from most advanced to least advanced): Diversified Economies (e.g. South Africa, Egypt, Morocco, Tunisia), Oil Exporters (e.g. Nigeria, Angola, Algeria), Transition Economies (e.g. Ghana, Kenya, Senegal), and Pre-Transition Economies (Ethiopia, Congo, Mali).  

  Nigeria, Africa’s most populated country as of Jan. 2011, has a fast growing financial sector. Relatively speaking, investors tend to have an easier time obtaining capital and other credit facilities in Nigeria.  Banking regulations and financial reforms were put in place throughout the mid 2000’s, spearheaded by Prof. Charles Soludo (Rhodes Scholar, economist, and author of NEEDS program) as Central Bank of Nigeria governor. 

These reforms: raised minimum Shareholders’ Fund for banks in the country to N25 billion [about US$200 million] from the former level of N2bn [US$15MN]; provided incentives for banks in the country to consolidate through mergers and acquisitions; sought to encourage banks to play active development roles in the Nigerian economy, while being competent and competitive players in African regional and global financial systems.  

 Nigeria’s government is pursuing a policy of trade liberalization and openness to privatization… slowly but surely.

 Since 2000, the business environment in Nigeria has been more amenable to foreign investors esp. with regard to the capital intensive sectors of the Nigerian economy like telecom and oil & gas; also privatization — allowing private ownership of previously government-owned operations and property seems to be on upswing in light of a rise in government “consented” real estate transactions since the start of the 21^st century.  Notably, the rationale behind government consent for real estate transactions in some parts of Nigeria is that by default the government owns the land.

 South Africa, Africa’s largest economy as of 2010, offers attractive investments in real estate and land properties.  The country is a top-notch vacation spot, and it has a lot of young professionals looking for good housing.  In addition, real estate developers are given tax breaks of up to 20% while another 20% tax break on rental is available for renovation projects according to SA Home Traders.

 South Africa’s workforce is highly trained.  The South African government has made a commitment to spend big on education and training as part of the Joint Initiative on Priority Skills Acquisition (JIPSA) which brings together the efforts of government, business, and labor unions to ensure that core professional skills are picked up through targeted training. As a result of this initiative, South Africa now has 1000 engineering graduates per year. This number is on track to increase to over 2000 per year by the end of 2011.

 Ethiopia, Africa’s oldest independent country according to BBC, offers significant tax incentives for import of investment capital goods.  According to the Ethiopian Embassy, there is a 100% exemption on importing investment capital goods like plant machinery and construction material into the country.  Also, products developed in Ethiopia are exempt from export tax.

 Ethiopia is quite liberalized with its permission of remittance out of the country. For example, remittance is permitted for: principal and interest payment on external loans, payments associated with technology transfer, proceeds from sales or liquidation of an enterprise, salaries and other payments.  Also, a 100% foreign ownership of an investment or enterprise is permitted.

Egypt, strategically positioned at the intersection of Africa, the Middle East, and the Mediterranean region, gives investors access to key global markets from one location. For example, the EU-Egypt Association Agreement set up a bilateral trade agreement based on reciprocal liberalization for both industry and agriculture.  In essence, Egyptian products from garments and furniture to food products enjoy special access to European Union markets.

  Algeria, one of Africa’s leading oil producers, is benefitting from increased government spending and openness to free trade. For example, the National Investment Council (CNI), chaired by the Head of State, was created to strengthen the legal and regulatory framework for investment.  CNI underwent an institutional restructuring in October 2006 to boost investment opportunities that are of interest to the national economy.  The CNI is in charge of defining investment strategy and priorities, approving special investment incentives by sector, and giving final authorization for special investment schemes.  According to ANIMA Investment Network,  the government passed a law in 2005 that requires all companies working in foreign trade to increase their capital stock equity to a minimum of DZ20 million (about US $275,000).

 Mauritius ranks 20^th among 183 countries (and first in Africa) as the “Easiest Place to Do Business”. The “Easiest Place to Do Business” report is prepared and released by the World Bank, and the ranking for Mauritius is benchmarked to June 2010.  A high ranking means that the country’s regulatory environment is relatively conducive to the starting and operation of a business.

 Ghana was the site of President Barack Obama’s first presidential visit to Africa in 2009. Also, Ghana was the site of stock broker and The Pursuit of Happyness author Chris Gardner’s “I am here to learn” engagement with African entrepreneurs, young professionals, and corporate executives in 2010.  Coincidence… Maybe… or maybe not.

 Kenya’s pharmaceutical market shows promising signs (from the investor’s as well as from the patient’s standpoint). Responding to the demand for better health services (i.e. patient care, pharmaceutical products, and medical equipment) is becoming commercially viable as more segments of the population are able to pay for care which in turn makes such services more affordable and accessible.  According to TradeInvestKenya.com, Kenya is the largest producer of pharmaceutical products in the Common Market for Eastern and Southern Africa (COMESA) region as of 2010 and Kenya supplies about 50% of the region’s market.  Kenya’s own pharmaceutical and consumer health market is estimated to be worth an estimated $160 million (USD) per year.

 Democratic Republic of the Congo (DRC) has a one-stop shop that helps investors who want to invest in the country. The National Agency for Investment Promotion (ANAPI) treats investors as though they’re on a VIP guest list.  It assists the investor during and after the approval of his/her investment opportunity with: airport or harbor welcome; transportation from airport to downtown and to various towns; reservation in hotels; search for land concessions and/or premises; search for foreign and domestic partners; set up of companies; and various other information on the Congolese.  Approval of a given investment opportunity is based on its advantages to the Investment Code – which is intended to favor competitiveness and business development.

 Botswana was the 2^nd Fastest Growing Economy in 2010. According to EconomyWatch.com, Botswana experienced a 14.4% GDP growth rate.  In fact, Botswana has been one of the fastest growing economies in the world since it gained its independence in 1966 according to figures from the World Bank.

  Angolan Stock Market and Derivatives (BVDA) will open in 2011.  According to finance minister Carlos Alberto Lopes, everything is being done to get BVDA up and running smoothly.  Antonio Cruz Lima, Capital Market Installing Commission chairman, said the stock market is reasonably prepared to open.  Some experts believe that the new constitutional reality of the country gives investors some assurance of Angola’s commitment to political stability.  Notably, the new Constitution of the Republic of Angola was approved in January 2011.

 Cameroon, “Africa in miniature” for its climate and cultural diversity, privatized its national mobile telecommunications provider, CAMTEL Mobile in February 2000. This has been a major development especially given the fact that Africa is reaching a period where mobile data may overtake voice in revenue generation.  Allafrica.com reported in November 2010 that the president of Ericsson in Africa, Lars Linden, views the innovation in Africa’s information and communication technology as substantial enough to enable mobile telecommunications operators to increase data services they offer through mobile phones and in turn generate more revenue for telecom operators in Africa.

 Tanzania has the confidence of investors and world class bankers. In a survey reported by the Tanzania Embassy-China in 2010 and conducted jointly by the Tanzania Investment Centre (TIC), the Bank of Tanzania (BOT), and the National Bureau of Statistics (NBS), 71% of existing foreign investors in Tanzania expressed desire and readiness to expand their businesses and only 10% were considering contraction.  In addition, investors have access to credit with the presence of major banks such as Standard Chartered, ABSA, Barclays, Citibank, Stanbic, and Exim.

 Liberia’s debt relief. The World Bank and International Monetary Fund announced on June 29, 2010 that they were supporting Liberia with a debt forgiveness package worth $4.6 billion (USD).

 Tunisia has a high level of skilled human resources and business incorporations. During the first eleven months of 2010: 188 new firms with foreign participation started their production phase; 212 expansion operations were carried out by foreign companies operating in Tunisia as part of the development of their activities; and 14,776 new employment positions, including 11,966 positions in the manufacturing industry were created. (Source: FIPA-Tunisia)

 Rwanda is open for business. In addition to President Kagame’s focus on private investment for economic development, Rwanda represents the hub for the increasingly integrated East African Community (EAC), an intergovernmental organization that includes Uganda, Tanzania, Kenya, and Burundi.  EAC has a market of 125 million people with a combined GDP of over $70 billion (USD).  According to Reuters Africa, the EAC is a probable precursor to the establishment of the East African Federation, a proposed federation of its five members into a single state. In 2010, the EAC launched its own common market for goods, labour and capital within the region, with the goal of a common currency by 2012 and full political federation in 2015.

 Namibia’s close ties with India can lead to long-term economic development that’s beneficial to both countries. The India-Namibia relations date back to India’s early support of the Namibian liberation movement that began in 1966.  In 2009, India and Namibia signed agreements to strengthen cooperation in trade and increase investments in sectors such as mining, agriculture, and textiles.  As India moves from an emerging market to a developed market, Namibia can become less of a “lion market”.

 Morocco has the strategic ability for olive oil production to help meet the worldwide demand. Worldwide consumption of olive oil is on the rise. The US market for olive oil grew by more than 50% from 2000-2010.  Morocco is the world’s 6^th largest producer of olive oil and its production is projected to increase by 267% in 2020.

 Swaziland enjoys preferential trading status with the United States and the European Union. The country has received trade preferences for apparel exports under the African Growth and Opportunity Act (AGOA) to the US; and for sugar to the EU under the Generalized System of Preferences (GSP).

 Mozambique is growing its trade & exports portfolio while alleviating poverty. Mozal, Mozambique’s largest and Africa’s second largest aluminum producer began production in mid-2000 and has greatly expanded the nation’s trade volume and jobs.  Also, China announced in August 2010 its plans to invest $13 billion (USD) in industrial, tourism, mining, and energy projects in Mozambique over the next five years according to report by The Economic Times.

 Malawi is becoming economically independent and ending famine simultaneously. In 2006, as a response to disastrously low agricultural harvests, Malawi began a program of fertilizer subsidies that were aimed at reinvigorating crop production.  As of 2010, the program has measurably improved Malawi’s agriculture, making Malawi a net exporter of food to nearby countries. (See: article in NY Times)

 Madagascar is the ultimate blend of African, Arab, Asian, and European industriousness; its unique location allows it to protect investors of diverse backgrounds with similar interests. Madagascar has signed foreign Investment Promotion and Protection Agreements with several countries such as Canada, Mauritius, France, and Germany.  These agreements provide a framework of legally binding rights and obligations.

 Sierra Leone is committed to settling commercial disputes… fast. In December 2010, the Sierra Leone Judiciary, under the leadership of Chief Justice Umu Hawa Tejan Jalloh, commissioned the Fast Track Commercial Court.

 Gambia is investing in itself. As part of Gambia’s Vision 2020, the goal is to become a middle income country and ensure that at least $10 billion (USD) will be invested in economic development by 2020.

 Mali is educating itself. Gross enrollment in primary education was an estimated 84% in 2009 according to Africaneconomicoutlook.org

  Senegal, like a group of other African nations, encourages arbitration over costly litigation. According to the US Dept. of State, Senegal and the US share a Bilateral Investment Treaty for international arbitration. (U.S. companies entering the Senegalese market should ensure that their contracts with third parties make a provision for binding international arbitration in case of a dispute).  The treaty also provides for Most Favored Nation treatment for investors, internationally recognized standards of compensation in the event of expropriation, free transfer of capital and profits, and procedures for dispute settlement, including international arbitration. Senegal has signed similar agreements for protection of investment with France, Switzerland, Denmark, Finland, Spain, Italy, the Netherlands, South Korea, Romania, Japan, Australia, China, Iran, Morocco, and Sudan. Senegal has concluded tax treaties with France, Mali, and WAEMU member states.

 Investments in Zimbabwe can be socially innovative. Instead of waiting to see whether the nation gets back on its feet, investors can take advantage of readily available investment opportunities that are socially responsible.  Investments can do the heavy lifting when political will tires.  Let your investment do your talking for you. As an illustration, Enterprise Zimbabwe (EZ) is a non-profit group that promotes entrepreneurship by connecting small and medium enterprises to philanthropic donations.  EZ was set up by Billionaire Richard Branson, Virgin Unite, Humanity United, and the Nduna Foundation; and it was launched at the Clinton Global Initiative 2010 Annual Meeting.  Behold socially responsible investment funds!

  Sudan, Africa’s largest country, has sent an open invite to brave investors. Following the successful independence referendum for Southern Sudan in early 2011, the Undersecretary in the Ministry of Wildlife Conservation and Tourism in Southern Sudan, Dr. Daniel Wani, is seeking investors in the aviation, hospitality, and safari sectors, and also encouraging private-public partnerships in the wildlife sector.

 Invest in lives – help Africa grow; help the economically deprived in Africa. Economic deprivation in the continent of Africa negatively impacts global economic security.  According to Ryan Shen-Hoover of Africanbusinesssource.com, here’s how some of the dots connect:  Each dollar invested in an African stock helps to build the liquidity of the exchange on which it trades. Rising liquidity lowers risk. Lower risk attracts additional investment to the exchange.

 Greater investment on the exchange lowers the cost of capital for listed companies.

A lower cost of capital leads to increased growth, food production, and job creation.

Credit:myafricaplan

Does the African Property Market Has Anything To Offer

B most investors have shied away from buying property on the African continent, due to the constant civil unrest and strife that seem to plague it. These unfavourable factors have been coupled with negative media content about Africa in the foreign press that often paints a gloomy picture of a place that has nothing good to offer. Believe it or not, construction and property investment have been major vehicles that the Diaspora has used to invest in Africa  Therefore, buying African property is a very attractive option when you consider the vast tourism and business potentials that the continent can also boast of. South Africa, Morocco, Egypt and Kenya are among a few o the proffered property markets. One of the biggest reasons to invest in Africa property is the outstanding value that you get for your money. As the cost of living is extremely low, foreign dollars can go a long way. In fact, it is very easy to live like royalty in Africa given the current rates of exchange for the currencies of most first world countries. Another very big draw for investors is the relatively inexpensive yet high quality of labour and materials that can be purchased for the development of housing projects. There is also a huge number of world-class facilities and related support industries that cater exclusively for the needs and wants of the business executive as well as the wealthy traveler. The property market in Africa is turning out to be a safe haven for investors in Africa. Rentals have for the past few years been going up quite steadily and as a result the property market has turned out to be one of the safest and profitable areas in the African continent. Property is getting good returns so much that unit trusts that are composed of almost entirely property investments have turned out to be the best performing ones. On country specifics, the Global property Guide has identified Kenya, South Africa, Tanzania, Gambia and Madagascar as the five most proffered property markets. But the real estate markets in some parts of Africa are definitely worth a second look.  In Africa, South Africa property is one of the most interesting investments available today for several reasons. Experts have attributed this to several reasons. Firstly this multi-ethnic cradle of civilization is located at the very tip of the African continent. Not only is a large part of the country surrounded by water but also the sub-tropical eastern coast is a haven for beach lovers and surfers alike that flock to its pristine white beaches and roaring surf. The climate changes dramatically in the northwestern part of the country where desert-like conditions are the norm. Regardless of the area South Africa is a stunning country with well-developed infrastructure and every modern amenity available including telecommunications, health services and information technologies. There is plenty of culture and history in South Africa and local and international developers are constantly adding to the list of luxury leisure resorts that it offers. The business community has actually voted South Africa as the best Business Tourism destination in the world. Added to the many international caliber services and facilities is an extraordinary natural environment which includes everything from wild animals, teeming ocean life, bountiful flora and rich jungles. There are tours and experiences for every taste ranging from safaris to deep-sea diving expeditions to relaxing golf getaways. With so much going for it, there is no wonder that Africa Property is becoming more and more attractive to investors looking for more than just a place to park their money. Cape Town also enjoys moderate transaction cost and strong rental market with economy. On Kenya, experts say the country has good pro-land rental market and there are moderate yields in Nairobi though her rental income tax as high, pitched at 30 per cent. In Tanzania, Dar es Salaam, there are high yields in main centers and a pro-land of rental markets. Gambia, Banjul and Madagascar, Antananarivo also has moderate and good platforms, not to mention the enormous potentials in other parts of the continent. All you need to do is to invest in the African property markets to unravel such mysteries. By Hannah Owusu Boamah, PE Online Editor

Choosing the Right House Plan

www.africahomebuildingshow.com

Choosing a house plan to meet your lifestyle and needs may seem time consuming or overwhelming, but knowing what to look for can help lead you to success when selecting a house plan for your new home. When choosing your house plan it's important to choose one that not only meets your individual needs but also considers your building lot, natural landscape and whether it will be marketable to future buyers in the event that you choose to sell the house at some point in the future. House plan considerations: Living needs and family lifestyles Lifestyles and family needs differ from individuals and families depending on their cycles, stages and future plans for the home they want to design. Features that newly wed couples look for in a house plan are vastly different from the characteristics that a retired couple might find important. Before choosing a house plan we suggest that you ask yourself a number of lifestyle and living needs questions ... Are you newly married? If so, do you have plans to start a family? How many children do you plan to have? Is there adequate room in your house plan for expansion as your family grows? Will you need guest rooms for overnight guests? What about additional living space in the future to possibly care for elderly parents or grandchildren? How do you plan to entertain? Do you want a formal dinning room and traditional living room for large formal entertaining, or do you prefer small-relaxed family get-togethers? Study your house plan and lot space to see if it is possible to expand the house plan living space in the future. Think about the time you presently spend in certain rooms in your home, and why. Some families like to make the kitchen the focal point for daily family gatherings and would require a large sunny eat-in kitchen with lots of space; others prefer a den or family room with lots of room for large sofas and a fireplace. How much privacy do you need and where do you need it? Most new home owners prefer home plans with more privacy in the master bedroom and personal living spaces, others might need privacy in a home office space. Another important consideration is how much privacy would you want and need from other occupants and neighbors. Also, check your house plan for placement of windows to see if they will provide adequate privacy from your neighbor's windows and yards. Consider how you plan to use and enjoy your outdoor yard space to see whether your house plan features like decks, patios, porches or pools will meet your needs for privacy. Landscaping, lot type and location can play an important factor in how much privacy your outdoor spaces will have. House plan work space considerations Do you have any hobbies or special interests that might require additional space or rooms to enjoy them? Will you have a need for a large workroom for messy or noisy projects? Do you enjoy gardening? You may want to include a mudroom or utility room with a half-bath, for quick and easy cleanup.  Are you a “pack-rat” who needs lots of attic or storage space to store your treasures? Furnishings and aesthetics Will the floor plan of your new home plan accommodate your existing or new furniture arrangements and furniture styles? When planning room sizes, carefully consider the seating areas and how furniture placement will affect the overall feel of the room. Do you want two separate seating areas or one larger conversation area? How will the room flow into other rooms? Measure your current furniture to determine if there will be adequate walking space of at least 36 inches around furniture and clearance for doors to swing. Will the height of your furniture block windows? Does it provide enough wall space, nooks and areas for art and personal effects? Review the natural “traffic flow” of the house plan, the interior views from each room of the home as well as how natural lighting can be shared and utilized within the home. House plans and outdoor living The geographical and natural landscaping features of your lot can have a large impact on the style of home plan you will need to choose. Therefore, while choosing a house plan, consider whether your lot space will provide a lawn area for outdoor games and sports or if you will need to reserve enough lot space to include pools, interesting landscaping or gardens. If you've already purchased your building lot you will need to consider these factors and tailor the house plan that you choose to meet those needs and requirements.

Another important factor to consider when planning on buying a new house plan is how many cars you currently own.

Will there be adequate driveway space as your family grows or parking if you entertain large groups of people?

If you have already purchased your house plan you might need to look for building lot that will complement that design.

Here are some other questions to ask yourself as you search for a lot, remember, you will probably have to make a few compromises along the way, so rank them in the order of importance.

The first thing we recommend is to make a list of the things that you liked and disliked about places you have lived and visited in the past.

Once you have prepared a complete list of the most important attributes that you are searching for you can begin checking out lot locations.

While searching for you ideal building lot, evaluate each lot based upon the qualities that you have identified on your list.

Check the direction of the sun. Where does it rise and where does it set?

If you are an early riser you might enjoy those early rays of sunshine beaming into your bedroom windows, or you might enjoy watching the sunset from a backyard deck.

Which side will get a southern exposure making it ideal for growing plants and flowers, also, you might want to position the house so the garage and or storage buildings can be on the north side.

This keeps them in shadows most of the day and allows the living areas to receive more light.

Keeping the above factors in mind will help you select the perfect lot for your new home.

Credit: thehousedesigners.com

Property As a Vehicle For Investments

 

By Hannah Owusu Boamah-Online edito/Property Express

7 June 2012

In recent times, almost all categories of income earners are looking for productive ways to invest as a result of economic down- turns, future planning purposes and avenues to generate more income.

The common plans for investment are through stocks, shares, dividend reinvestment plans, index funds, discount brokerage account and mutual funds.

Some also prefer to buy commodities like gold, do currency trading or invest in government saving bonds.

According to Forex Management, an investment advisory group: “Capital investment decisions are not governed by one or two factors, because the investment problem is not simply one of replacing old equipment by a new one, but is concerned with replacing an existing process in a system with another process which makes the entire system more effective”.

An investor must carefully plan in order to make the rightful choice.

 However, among such investment plans, real estate and acquisition of other properties remain key determinant factors, especially in this part of the continent where the infrastructure and housing sector are largely untapped and thus possess huge potentials.

So, if you are thinking of where to invest, consider properties as a viable alternative.

Interestingly, most people in this part of the continent have ignored the investment potential of the property industry, thus have huge properties that are of no significant benefit to them.

Some acquire property for status reasons, just to show off or for fear of poverty, and this is a common practice in Ghana and elsewhere.  “I own of five houses to their credit’, a property owner will say, but is there any investment potential being realized?

To get a full grasp of the argument, the free dictionary will help to define property, as “Something owned, a possession, a piece of real estate; or something tangible or intangible to which its owner has legal rights”.

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Why Is the Property Sector Viable?

According to the UN Habitat, more than two billion people will be added to the number of urban dwellers in the developing countries over the next 25 years. 
 If adequate financial resources are not invested in the development of urban shelter and requisite services, this additional population will be trapped in urban poverty, deplorable housing conditions, poor health and low productivity thus compounding the enormous slum challenge that exists today.
In Ghana, urban population growth is at 2.7 per cent per year.  This is distributed into 48, 000 human settlements and 44 per cent classified as urban live in the Greater Accra, Ashanti and Western Regions.  Accra and Kumasi have population of 1.2 million each.
The national housing deficit is estimated at over one million units and 364,000 new houses are needed annually which has brought about an acute pressure on basic housing services and infrastructure.
The reality of housing situation in many developing countries means that new ways of micro-financing and community funds have to be encouraged if the poor are to be provided with adequate shelter and basic services.
 The way forward
In Ghana, most people own properties, which they might have financed themselves or have inherited it from a family member.
 However, a vast number of property owners have not fully realized its investment potential and general knowledge on the use of properties as a vehicle for investment remains relatively low.
In acquiring a property one must seriously consider the asset and liability factors, though investment can be a risk by looking out for ways that a property can yield high returns.
Assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset.
Liability on the other hand, can mean something that is a hindrance or puts an individual or group at a disadvantage, or something that someone is responsible for, or something that increases the chance of something occurring (that is a cause).
Therefore, there are a number of ways that properties could serve as an investment by being an asset, instead of just seeing it as an end to a means.
Therefore property owners in the country must begin to explore ways to yield more investment from their properties, instead of just enjoying the title of “Landlords” or for luxurious purposes.
Mortgage experts have also advised some ways to increase cash inflow from property such as upgrading facilities in rented apartments to maximum rent payment and providing furnished property for tenants.
They say you can even consider renting out your property by room. This provides a unique opportunity for target groups such as students, or opting for an interest only mortgage. 
One can also delay paying interest repayment by using a Cash Flow Mortgage, which allows investors to pay only a portion of the interest charged every year, and allows the interest component that has not been paid o get depreciation tax benefits from even an older property going back quite a few years if you haven't done a depreciation schedule for a while.
Those that have benefited from ‘Shylock” mortgage services and are finding it difficult to meet their financial obligation can also lease out the apartment for a period of time and use the revenue generated to seek a more cost effective residence elsewhere, whiles winding up to settle their debt.
Despite the potential that the industry has for property owners, that of foreign direct investment could not be overruled.
FDI in Africa has often been channeled to the oil sector, yet considering the UN Habitat statistics on housing deficits, there is a need for more funds into the sector as well.
These are but a few of the numerous opportunities for property owners to explore investments, and the country’s housing deficit provides the appropriate environment to do so.
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Lessons as Ghana Prepares for New Airport

By Hannah Owusu Boamah-Online editor/property Express

7th June 2102

Over the past few days, the media airwaves have seen various arguments as to whether the location of the Kotoka International Airport (KIA) is safe, considering the recent air cargo crash last Saturday.

Notable among personalities that have called for the relocation of the airport is the flag bearer of the New Patriotic Party (NPP), Nana Akufo-Addo and Dr Kofi Henaku, an aviation expert.

A Nigerian cargo plane DHV3, belonging to Allied Air Cargo crash-landed and overshot the runway at the KIA, breaking the wall opposite the El-Wak Stadium, killing ten people on a bus and a soldier.

The event, took place at 19:10 hours and the aircraft is said to have crashed when it failed to land properly and decided to jet back into the air, but struck a communication mast belonging to the Ghana Civil Aviation, broke it wings and thus could not take off again.

However, this might seem the first time in decades that an aircraft accident had occurred in Ghana, but has raised serious concerns on safety, architectural and planning issues as the country considers sitting a new airport at Prampram in the Greater Accra Region. 

A glance at the genesis of the country’s premier international airport, which has the capacity for large aircraft such as the Boeing 747-8, was established to serve as the aviation hub of the West African sub-region.

Kotoka Airport renamed from Ghana International Airport, in honor of Lieutenant General Emmanuel Akwasi Kotoka (October 26, 1926 – April 17, 1967), a member of the ruling National Liberation Council presently serves as a base for domestic operators CTK-Citylink, Starbow airlines, fly540 and Antrak Air.

Also alarming is a report in the Herald newspaper that reported pilots and  other aviation experts are raising alarm over potential plane crashes at the KIA, Ghana’s only standard airport, as a result of serious disruptions in communication between approaching pilots and the Control Tower”.

This warning was sounded after The Herald intercepted an alarming five-page report which said “serious security breaches,” had occurred at KIA with pilots complaining about poor visibility and communication at the airport.

In the wake for these calls, government says it is considering the option of building a new international airport at Prampram in the Dangme West District in the Greater Accra Region to ease the pressure on the Kotoka International Airport (KIA).
The Minister of Transport, Alhaji Collins Dauda, made this known in Accra last Monday after leading a delegation to visit the families of those who died in the plane crash at the Hajj Village near the El-Wak Stadium in Accra last Saturday.
He said air traffic activities at the KIA had increased over the years and that there was the need to construct another international airport in the green belt as an alternative to the KIA, adding that a team of surveyors from the Survey department was already on the land working and as soon as the work was completed, the government would invite individuals and business entities interested in the project to come up with a conceptual design.

With such concerns on encroachment and security, there is also the need to carefully look at the architecture and layout requirement for airport projects.

Major factors come to play in airport layout and architectural, whiles measures are also been put in place to do away with encroachers and other security issues related to KIA operations.

To begin with, key among airport infrastructure is the runway.

When runways are built, their layout is influenced by many factors, such as aviation regulations, environmental concerns, noise level impacts, terrain and soil considerations, natural and man-made, obstructions, annual weather patterns, and the size and performance characteristics of the airplanes that will use the runways

These are all factors in runway and airport planning. Many issues are studied before final decisions on airport location and runway layout are determined.

Environmental impact requirements for airports were first established with the National Environmental Policy Act of 1969 and in 1970 with the Airport and Airway Development Act as in the United States.

These acts ensure that due consideration is given to the effects on the quality of the environment and the surrounding communities in regard to airport expansion, use and development.

Before building a new facility or expanding an existing facility, an impact study or feasibility study must be done. These studies include a critical assessment of all impact issues from soil to air quality.

Controlling water pollution from airports has been well mastered by planners. Airports can be major contributors to water pollution if suitable treatment facilities are not provided for the various types of airport wastes.

These wastes include the following: domestic sewage, industrial wastes such as oil and fuel spills and high temperature water degradation that stems from the heat of various power plants in nearly constant use at an airport.

One of the most severe problems is that of aircraft noise in and around an airport. Laying out runways so that air traffic patterns occur minimally over heavily populated areas is a practice now widely employed during runway expansion and when building new airports.

Controlling the land use around an airport also helps reduce the interference of aircraft noise with the public. Noise abatement procedures during take off and landing make for quieter airport operations.

Such procedures consist of a faster takeoff speed quickly followed by slowing the engine once airborne over a populated area, then returning the engines to full speed and resuming normal flight operations.

This lessens the amount of engine noise over the populated area without adversely affecting the flight. Improvements in engine design have also been a successful factor in reducing aircraft noise.

Airports attract business and people, but airports are noisy. Businesses and people do not like airport noise. There are very few airports in the world where no noise complaints have been recorded.

Noise in the vicinity of airports generated from aircraft operations has an adverse impact on a community’s quality of life. At the very least, aircraft noise is distracting and it can be unhealthy. 

Airport operators are primarily responsible for planning and implementing action designed to reduce the effect of noise on residents of the surrounding area. Such actions include optimal site location, improvements in airport design, and noise abatement procedures.

Noise abatement procedures can include designated arrival and/or departure paths and procedures. Land acquisition and restrictions on airport use should not unjustly discriminate against any user or impede the federal interest in safety and management of the air navigation system.

During the 1990s, aircraft were required to become less noisy. This change was accomplished with the design of quieter engines and in some cases “hush kits” were installed on some older aircraft.

The change came in three stages where the aircraft noise level in decibels was reduced to less objectionable and less dangerous levels. As of the first of January 2000 Stage 3, the final stage, was implemented.

The noise level of Stage 3 aircraft is comparable to a busy urban street and is much quieter than the Stage 2 aircraft noise level, which is similar to an amplified rock music concert.

The ground on which the airport is to be built must have a stable stratum of earth upon which building foundations can be anchored.

The soil must be capable of supporting heavy loads without shifting or sinking. If the airport’s runways are to be used by heavy aircraft (airplanes with a gross weight of 300,000 pounds and heavier) the underlying soil and/or bedrock must be able to support the weight of the runway plus the aircraft’s weight.

Many airport runways have several feet of reinforced concrete to support the airplanes without cracking.

Other factor to also consider is the direction of the wind. Land at a greater elevation surrounding an airport such as mountains also has a profound effect on winds.

For instance, the wind pattern on the leeward side of a mountain contains dangerous downdrafts or “rotor waves”. An aircraft flying through such wind would encounter hazardous turbulence that would push the airplane towards the ground. These are all considered when orienting runways in an area near mountains.

There are many airports within mountainous areas where the runway headings generally run parallel with the length of the valley in which they are located or run along neighboring rivers.

Man-made obstructions like multi-storied high rises, transmissions towers and bridges can and do influence runway orientation.

Consideration of local weather patterns is also a factor in determining an airport’s layout. The weather patterns of an area, especially the prevailing winds, are a major factor in determining runway headings.

Prevailing winds are defined as the direction from which the winds blow most frequently. Remember that airplanes take off and land into the wind.

Let’s say that at a given airport the prevailing winds blow in from the west 65% of the year, while 30% of the year the wind blows in from the east, and the remaining 5% coming from the northwest. It would be best then to orient the runway W (27) and E (9).

That would mean that approximately 95% of the year airplanes would be landing and taking off into the wind. In most of Texas and Oklahoma the runways are generally N-S runways because the winds are usually from either the North or South. In parts of the Eastern United States there are many airports with NE-SW and NW-SE runways because the winds are more likely to change between those two directions.

These are among few factors to consider for airport planning and development, hence the need for government and stakeholders to ensure that the proposed Prampram project is executed to meet international standards and requirements.

As the saying goes: “if it must be done, it must be done well”, there is the need for more government commitment so to forestall any lapses and shoddy work that often mar the infrastructure development in the country.

 

CONDOMINIUMS-VITAL FOR GHANA'S HOUSING SECTOR

By Hannah Owusu Boamah,Online Editor-Property Express
6 June 2012

Housing remains a key component in the triplets of the necessities of life namely, food, shelter and clothing.

As such, governments and individuals as well as developers and investors continue to commit resources into this vital sector.

In Ghana, the twist and turns of the housing or real estate sector calls for more innovative product and services that will meet this vital need of life.

A  viable alternative that  has not been much explored in the country , is the introduction of condominium, popularly known as  "condo"  in the developed economies or better still "high-rise building".

Condominium is a form of home ownership in which individual units of a larger complex are sold, not rented.

In this system of ownership, we see a building or complex in which units of the property are owned by individuals  but properties such as the grounds and building structure, are jointly shared among the unit owners.

In China, 64 million condos are available.

Those who purchase units in a condominium technically own everything from their walls inward. All of the individual homeowners have shared rights to most common areas, such as the elevators, hallways, pools and club houses.
Maintenance of these areas becomes the responsibility of a condominium association. Every owner owns a share of interest in the condominium association, plus an obligation to pay monthly dues or special assessment fees for larger maintenance problems.
Could this ownership plan be adopted in Ghana, considering  that the country's housing deficit stands at over one million houses, according to the Government of Ghana's website.

However such huge deficit rates calls for key decisions that would address these lapses, since most initiatives to reverse the trend have proved futile.

There is therefore the need for more proactive measures that will provide decent and affordable houses to all Ghanaians and such system could include ways to fully explore the condo system.

Taking a glance of the current predominant system of landlord and tenancy rifle day in and day out, could there by means to explore the use of condos to address such hitch.

To begin with, lets attempt to look at the merits and demerits of high-rise building.

Some critics have said a condominium arrangement is not the best option for every potential homeowner, since there could be noticeable lack of privacy in the common areas shared by owners.

 Those who would prefer to own all of their amenities and maintain their own lawn and garden may want to pursue single home ownership options instead of a condominium.

It can also be more difficult to sell a condominium unit as opposed to a home with acreage.

Therefore, this ownership style is said to be most suitable for  veteran apartment renters who don't mind having close neighbors and persons  who may not want to be bothered with external maintenance or the responsibility of lawn care.

Condos are also ideal for frequent travellers and therefore If you travel a lot or need to be able to leave with little notice, this can be your ticket to enjoying that freedom.

With this, you can travel never having to be concerned about your yard maintenance, waste or other security issues since all these things are handled for you.

Also condo living can also contribute to a more active lifestyle and residents are also each others keeper.

Condos also provide the opportunity for those wanting more amenities at less cost.

Moreover, this system is cost effective , it may be much lower than an equivalent single-unit home. Buying a condominium does allow equity to build, unlike paying monthly rent in an apartment complex.

Also instead of opting for rental where you continue to have headaches from a landlord and having to abide by so many "we don't do this in my house then a condominium living may be more advantageous financially than apartment rentals.

This ownership style is also an excellent alternative for many as their lives transition from one phase to another.
Condos also comes with certain demerits such as noise from neighbour’s, including those above and below your unit, parking at condominiums is often in a common area not attached to the home, no yard and some condo buildings may have stairs.
One thing to be aware of when living in a condominium setting is the political reality of an owners' association. Decisions may be made in monthly meetings which will cost individual owners more money, but not necessarily deliver equal benefits for all.
It can be nearly impossible to avoid being affected by at least one condo board decision, so active participation in meetings and discussions may be more compulsory than you might expect.
Condominium living may be more advantageous financially than apartment rentals, but it does require more active participation in community events.
 WHY CAN IT BE AN OPTION FOR GHANA?
Considering the income  and poverty levels in the country, condominiums can be a viable alternative, since they are quite moderate to owing an estate.
Secondly, due to the poor maintenance culture inhibit  in this part of the world, condos will be an appropriate system, since the responsibility of maintenance  will be handled not be the owners, but the associations.
It also provides an opportunity to re-adopt the community life-style, virtually fading out due to urbanisation.
The indigenous Ghanaian culture encourages brotherliness, being each other's keeper, hence this system will further strengthen such ties that exist in the local culture.
Also, with the current economic situation, where most inhabitants stay out mostly for work, condos will help ensure utmost security and peace of mind whiles away from home.
Notwithstanding these points,  another crucial factor is the rift between landlords and tenants, hence, this ownership style could ensure more peace in homes and encourage more people to channel resources there.
WHY THE NEED FOR CONDOMINIUM ACTS IN AFRICA
 In recent time, the Ghana Housing Finance Association  (GHFC), a trade association of practitioners of housing finance, is working with stakeholders to draft a Condominium Property Bill to develop condominiums to address challenges in the housing sector.
The bill will be used as an advocacy tool influence both legislative and executive arms of government to pass a Condominium Law.
Mr. Charles Bonsu, General Manager, Mortgage and Consumer Loans of HFC Bank Limited, who announced this at a four-day sensitisation workshop in Accra said it was for the development of a Condominium Law in Ghana; the purpose for the GHFA was to develop a form of national housing finance network to support pilot schemes, innovations and initiatives.

In addition, to strengthen collaboration and partnership between government, private sector, bilateral and multi-lateral agencies as well as civil society, to address housing finance challenges.

As part of effort to achieve such feat,  GHFA is to train and equip members with general information and advocacy skills and to take them through the essential steps in designing and planning an advocacy campaign and undertake the advocacy action leading to the development and promulgation of a Condominium Law in Ghana.

The development of flats and high rise properties has become the norm in Ghana, especially in the metropolis because they enable developers to maximise the use of land and space.

Players in the housing industry therefore say there is the need to pass a law to regulate the industry and also encourage the formation of property management companies for such facilities to instill discipline in the industry and facilitate the development of more high rise properties.

With challenges in the housing industry which has a deficit of about 100,000 houses a year, high cost of land and inadequate long-term finance; the development of condominiums is seen as a way of addressing the challenges.

Ghana had no common areas and other issues and therefore needed to pass a law to regulate the industry and encourage the formation of property management companies for such facilities and the law would not only instill discipline in the industry, but also facilitate the development of high rise properties.

Mr David K.D. Letsa, Partner of Bentsi- Enchill , Letsa and Ankomah, consultants for projects, identified some of the challenges facing the housing sector as high cost and access of land, lack of transparency in land tenure and multiple sale of landed property, heavy reliance on imported building materials, high cost of building materials, margins of developers, prolonged land title registration process and undeveloped local building materials industry.

He said there was the need for a condominium regulation that would avoid haphazard, uncontrolled developments, unsound engineering, risk to life and property.

It would also encourage developers, assurance of title, adequate maintenance and induce financiers to invest.

Mr. Letsa said the preparation of the bill was a formidable exercise and must be responsive, forward-looking and necessarily complement the reforms currently being undertaken in land administration and use.**

Chief Attorney Also,  George Coppolo, Chief Attorney has indicated that the need for a a Condominium Act.
 The act will spell out legislations that will among others provide for the election from among the unit owners of a board of directors; their tenure, duties, powers, compensation and removal of boards.
 It will also spell out the method of calling meetings of the unit owners, and the percentage, if other than a majority, of unit owners that constitutes a quorum; the qualifications, powers and duties of the officers of the association; the manner of selecting and removing officers and their term and compensation, in addition to issues related to governing the alienation, conveyance, sale, leasing, purchase, ownership, and occupancy of units as are desirable;.
Considering the challenges of of the african property market as well as that of developing economies, there was the need for an Act of Parliament that will ensure adequate regulation should this be a viable alternative to address the woes of the continent's housing deficits.
THE ROLE OF CONDOMINIUMS IN CO-OPERATIVE AND STATE HOUSING POLICIES
In Ghana, efforts by subsequent governments to secure affordable housing estates as well as to institute effective state housing policies have proved futile.
Notable among them are the Affordable Housing Project under the Kufuor -led administration and the controversial STX Korea deal.
However, notwithstanding these, challenges with the Chinese experience and replica experiences in developed economies, there is the need for government to consider this ownership plan.
Ghana, for instance still has a lot to capture in the current landlord and tenants system and explore ways to diversify this system to a more effective condo system.
With its benefits of cost effectiveness, state housing policies can also be diversified and consider ways to adopt such a system to meet the needs of the people.
In terms of co-peratives, this niche in the country remain mostly untapped.
Ghana still remains in a housing crisis, hence the country continues to explore innovative startegies for results.
Cooperative housing projects are a proven form of multitude homeownership. It has many benefits and has been used to meet the high demand of housing for a variety of people in Ghana, according to the ghanainvest.com..
A cooperative housing project is formed when investors jointly decide to own, control or build various housing projects.
A housing cooperative is therefore a legal entity owns real estates consisting of one or more residential buildings;.

The corporation is membership based, with membership granted by way of a share purchase in the cooperative.

  A primary advantage of the housing cooperative is the pooling of the members’ resources so that their buying power is leveraged, thus lowering the cost per member in all the services and products associated with home ownership.

Cooperative can also used to describe a non-share capital co-op model in which fee-paying members obtain the right to occupy a bedroom and share the communal resources of a house that is owned by a cooperative organization.

Such is the case with student cooperatives in some college neighborhoods in the United States. and as practised in Canada, Sweden, India, Germany and Finland.

Coperative housing projects  have seen some successes, but some experts have blamed the high cost of building materials and other factors such as land litigation on inability to perform, but there is still more to gain than lose.
Such investors could therefore explore opportunities that condos present in Ghana's economy in addition to other sectors such as  garden-style housing communities, student apartments, middle class townhouses, single-family homes and senior housing.
With the high demand for quality and affordable housing in Ghana it is destined to be a highly yielding investment.
To blend all facts, there is a need for government, stakeholders and investors to seriously consider the use of condos among other such vital  options, in order to help make the dream of an affordable and comfortable apartment a reality for all persons and not the preserve of only a few.
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