Real estate developer proposes Housing Levy to help deal with mortgage financing challenges in Ghana

Executive Chairman of Comet Properties, Nana Odeneho Kyeremanteng is proposing an introduction of a housing levy to complete current initiatives aimed at dealing with current challenges with home ownership and construction.

According to him, this might be one of surest ways to have a dedicated funding for the housing sector to address the demand and supply concerns.

Funding Mortgage in Ghana

It is currently estimated that Ghana housing deficit stands at 2 million housing units, this is due to what some will describe as a shot fall in supply. It is for this reason that it why government recently intervene, in terms of providing affordable housing especially for public sector workers.  

Government in the 2018 Budget and Economic Policy has approved the establishment of a National Housing and Mortgage Finance Scheme. This is expected to provide extensive construction of residential housing across the country to promote social equity and stimulate the economy.

In this regard, the Ministry of Finance has designed a Scheme and set up the National Housing and Mortgage Finance Fund to address the two (2) main constraints to home ownership by Ghanaians – access to mortgages to buy homes by low to middle income earners and high cost of financing for the construction of residential homes; and to ensure sustainability in the opportunity to own homes by large segment of Ghanaians.

Supporting the Ghana businesses to develop the sector

Nana Odeneho Kyeremanteng noted even though the Housing Fund can be described as a good initiative.

He noted that it will also ensure that successive government do not have to struggling to get the required funding to support the sector.

The Executive Chairman of the Comet Properties also noted that that time has come for us to recognized that its Ghanaian firms that can develop the sector and not foreign firms, therefore “the required support should be giving to local firms in the real estate housing industry because of  their impact on the sector, capital retention and job creation.

Future of Comet properties

Nana Odehowo Kyeremanteng they are still committed to the growth of the real establish industry as well as providing housing to meet the needs of both the “lower” middle and upper clients in the country. 

On funding for comet properties after failing to go onto the stock market, Nana noted they are raising money through private placement and other avenue to grow his business.

Comet Properties was in 2012 looking at listing on the Ghana Stock Exchange by raising some 62 million cedis.  However it failed to be the first real estate firm to unto the market after a challenging public offer.