Potential home-owners are always faced with the dilemma of choosing between buyingand renting property.

Many individuals dream of owning a property but such aspirations must be dealt with tactfully. Notwithstanding, these two forms of ownership offer their own peculiar benefits, depending on the individual and the situation at hand.

According to the Ghana Statistical Service, the real estate industry, along with professional, administrative and support service activities contributes to 4.8% of Ghana’s GDP. The growth however has been relatively slow according to government statistics, which puts Ghana’s housing deficit at over 1.7 million units.

A number of factors have led to this challenge, namely, land acquisition, high cost of building materials and a lack of data on housing just to mention a few. These challenges, however, are not expected to slow down investment in the sector, mainly due to the growing demand.

Buying

Buying property  in Ghana, may be a somewhat cumbersome in nature but it also comes with certain benefits. The major benefit of owning a property is the appreciative nature of its value. A property in Ghana is more likely to appreciate than depreciate in value and that trend has followed through right from the time of Ghana’s Independence.

The added benefit of securing financing is also welcoming news to property owners. A property owner stands a higher chance of securing funding for an investment when his or her home is included in a collateral agreement. Banks deem it less risky dealing with such individuals and can help many individuals go a long way in pursuit of their business.

An individual can decide to pre-purchase a home, acquire through a real estate developer or gain mortgage financing. Unfortunately, most individuals’ purchasing power may inhibit them from making such a venture. This form of property acquisition would mostly suit individuals in the mid-to-upper income bracket.

Renting

For many aspiring home owners in Ghana, the dream to immediately own a home may prove too daunting in the short term to venture. Such individuals, thus, would be better served renting a property than buying one.

One has to assess the size of his or her bank account vis-a-vis their immediate future plans. For instance, a newly-wed couple within the middle-income bracket would stand to benefit more in renting a property than buying one. According to the Bank of Ghana 2008 report, the lowest price for a semi-detached house was $30,000. For such individuals, earning more income would be more prudent before engaging in property acquisition.

The monthly cost of renting can be relatively lower than home acquisition. Monthly rent payments can go for as low as GH$200 a month. Tenants are also spared the stress of paying property taxes and in most cases, maintenance costs.

Renters, in effect, have the luxury of venturing into other investments with the added savings. Some of these could include venturing or expanding a business and investing in a child’s education.

Renting also affords individuals the flexibility to move from one neighborhood to another. This is especially essential to an individual who needs a home close to his or her workplace.