A lot of times, we see buying homes as a place of accommodation, a place of rest and yes, it is all those things but I want people to look beyond buying a home for a home but look at it as buying a home for profit. And what we mean by this is, we are not just emotionally moved into purchasing a property but we are more moved by the financial figure. So, for example, we are looking at location. Is this a good location in terms of demand? In terms of it being an area that is appreciating or emerging market or it’s a prime area as opposed to “Let me buy this house because it is close to my job.” Right?
We want to look at the financial figures. Does it make sense to buy this home today, in 3 to 5 years? Will I be looking at steady appreciation in the property? Will I be looking at capital gains if I decide I want to upgrade and buy something else? Will I be able to get rental income for this particular property? So, these are things that we need to be looking at; three key things:
Income, Equity and Appreciation.
That is what will determine your future net worth and 95% of millionaires today started with a real estate portfolio so real estate is a way to gradually increase your net worth value. So I want to encourage people in Ghana to look at the possibilities of buying a home for profit.