Property Investment Plan (PIP) is a real estate Product with and investment component in it. It is a plan that will usher a low and middle income earner to qualify for a mortgage. It is a plan that allows one to contribute certain amount of money on monthly bases for a period of between 3 to 10 years in order to acquire a property.
We all know that in Ghana and some other parts of the world, if you want to buy a house or any landed property, you will need to buy it outright or through mortgage loan. If you chose to buy through mortgage, you need to pay at least 20per cent of the total cost of the property and then the bank will pay the rest 80 per cent.
In view of the difficulty in raising minimum deposit requirements as demanded by the banks, Property Zone Ghana Limited has designed the Property Investment Plan (PIP) to salvage the housing needs of low and middle income earners.
PIP aims at assisting middle and low income earners to accumulate the amount that is needed to apply for a mortgage. This plan will allow people to pay an amount of money (between GHC 100.00 to GHC 2000.00) on monthly basis. Customers that pay consistent will gain a bonus of 10% after every 12 months. The money will grow within a period of 3 to 10 years depending on the amount the customer is paying. When the customer hits his or her target amount, (known as Maturity) then Property Zone will go ahead and apply for the mortgage on behalf of the customer. We will also see through the whole process till the person gets the house. In this regard Property Zone Ghana is coming up with brand new standard and affordable houses in the Greater Accra Region and some of the Regional Capitals across the country in a gated community with Electricity, water and all other infrastructure.
Property Investment Plan (PIP)
3.1 Why the need of Affordable houses
I. The rent Situation in Ghana.
Rents can be freely negotiated and rent increases are unrestricted. In practice, a landlord charges one to three years rent in advance, though according to the Rent Act, landlords can only charge six months’ rent in advance, with succeeding rental payments due every six months. Tenants have become vulnerable to the landlord in the urban areas in the country especially in Accra. Because the tenant simply need a place to sleep for them to be able to work in Accra, Landlords Take advantage of them. They forcefully demand for 2 to 3 years rend advance which will take the tenant all his/her life saving to pay. Aside that if the Tenant happens to share the same compound with the Landlord, then in most cases, there will be no peace of mind for the tenant.
Pre-termination of Contract: If the tenant wishes to pre-terminate a contract, he must inform the landlord three months in advance. In most cases, the tenant must look for someone to take over the lease for the duration of the contract or wait for the repayment for months.
II. The outrageous Monthly rate.
There is no regulation in Ghana that controls the rental price of houses. I stand to be corrected if there is that I do not know of. Comparing the rental prices for accommodation in Ghana to other parts of Africa like Nigeria and South Africa, Ghana is the most expensive. A standard 3 bedrooms apartment in a prime location in Accra like cantonment and airport Residential will go for a minimum of $2000.00(GHC9000.00) to $6000.00(GHC28,000.00) per month while a 2 bedrooms apartment will range from $1000.00(GHC4,500.00) to $2,500.00(GHC12,000.00) Going back to the highly populated residences in Accra like Spintex Road, Achimota, Madina, Teshie Nungua and others, a standard 3 bedrooms house or apartment will range between $250.00 (GHC1200.00) to $1,500.00(GHC7,600.00). 2 bedroom house or apartment in the same locations will range between $120.00(GHC500.00) to $500.00(GHC2, 600.00).