CategoriesInsights Real Estate

The Ultimate Guide to Installment Payments | Buying a House in Ghana

Buying a house in Ghana with installment payments is a viable option being introduced by some real estate developers. With installment payments, you can spread out the cost of buying a house over time, making it more affordable for you.

In this post, we will first share what is on offer at Regimanuel Satellite City and also provide information on other installment payment options made available by some real estate companies in Ghana; their pros and cons, and provide tips on how to choose the most suitable option for you.

Installment Payment Options at Regimanuel Satellite City.

Tips for Choosing the Best Installment Payment Plan

  1. Compare the different installment payment plans offered by real estate developers. (check out table 1.2)
  2. Check if there are interest rates and the terms of each plan to determine which one is the most affordable for you.
  3. Make sure you understand the terms and conditions of the plan you choose, including any additional fees and payment schedules.
  4. Determine if you meet the eligibility requirements for the plan you want to use.

Table 1.1 (shows installment payment options offered at the Regimanuel Satellite City housing development in Accra.

Developer
Project
Payment plan
Interest Rate
Regimanuel Gray
40% deposit
40% at lintel
20% after completion
0%
Regimanuel Gray
40% deposit
remaining spread
up to 24 months
0%

The Payment Plan Options for Buying a House in Ghana

  1. Developer’s Payment Plan: This plan is usually offered by some real estate developers as part of their sales strategy and may not exceed 18 calendar months. Under this plan, you make an initial lump sum deposit and spread the remaining in agreed intervals with the developer. In some instances, a monthly payment schedule may be agreed upon with the developer following the initial lump sum deposit until the full cost of the house is paid off. There are usually no interest charges on this plan. Interest charges may only apply if the buyer defaults on the agreed plan. This may be part of the terms and conditions, which you should carefully study before you start.
  2. Rent-to-Own Plan: In this plan, you rent the house for a certain period and then own it after you have paid the agreed amount, which is usually spread monthly. The payments you make during the rental period go towards the purchase of the house. These plans can also come with different terms and conditions. In Ghana, this option is not usually offered by real estate developers. It is mostly available with housing developments which are funded (fully or partly) by the Government.
  3. Structured Payment Plan: Where the developer is not openly offering a payment plan, the prospective homeowner could formally write to the developer to propose a payment schedule that he/she commits to make accordingly. This is a new but growing trend in the industry. It is advised that you critically analyze the details of the agreed terms to ensure that it is suitable for your financial circumstance; and have both the seller and buyer sign off with their respective witnesses.
A 2-bedroom House for sale at Regimanuel Satellite City, East Legon Hills Accra

Key features of the Payment Plan Options

To help you choose the right installment payment plan, we’ve compared the key features of each of these plans in the table below:

Payment Plan
Interest Rate  
Length of Plan
Eligibility
Requirements
Developer’s Plan
No
Usually doesn’t
exceed 18 months.
Requires an initial
deposit of between
30% – 40%
(of the cost of the house)
Rent-to-Own Plan
Varies
Varies and may last for years. You can occupy
the property
while paying for it.
Requires proof of
income, creditworthiness,
and an initial deposit.
Structured Payment
Negotiated
Usually doesn’t
exceed 24 months.
Requires an initial
deposit and may
require a guarantor.

Comparison of Installment Payment Plans by some Real Estate Developers in Ghana

To help you choose the right installment payment plan for your next house, we’ve compared the key features of payment plans currently being offered by some real estate developers in Ghana. (in the table below):

Developer
Payment
Plan
Maximum
Tenure
Project
Denya Developers
25% down-payment;
15% quarterly.
up to 18 months
The Pavilion,
Cantonments
Regimanuel Gray
40% down-payment;
spread the remaining
till completion.
up to 24 months
Satellite City,
East Legon Hills
Capemay Properties
A spread of payments
for
6-12 months.
up to 12 months
The Signature,
Accra Mall
Devtraco Plus  
20% down-payment;
spread the remaining
till completion.
up to 12 months
The Pelican,
Cantonments
Indigo Homes 
A spread of payments for
6 months.
up to 6 months
Oyarifa Park,
Oyarifa
Appolonia City
20% down-payment
18-24 months spread.
up to 24 months
Appolonia City,
Oyibi
It is advisable to choose a payment plan that resonates with your family’s financial cycle.

Bank Financing (Mortgage)

Bank financing is another installment payment option available in Ghana. It involves obtaining a mortgage from a bank or other financial institution to finance the purchase of a house. The bank sets the interest rate (either variable or fixed) and payment terms based on the applicant’s credit history and other factors.

Currently, The Republic Bank, in Ghana, is offering the most competitive interest rates (at 25% p.a – November 2023)

Bank financing typically offers higher interest rates than developer & structured financing and the application process is also more involving. The approval process can take longer. It is advisable to compare the various plans based on what the banks are offering in terms of Interest Rate, Down Payment, Repayment Period, and the Maximum Amount you can qualify for.

Pros and Cons (Developer Financing vs Bank Financing)

Developer Financing Pros:

  • Faster approval process
  • A more straightforward application process
  • No need for a credit score

Developer Financing Cons:

  • The stress of finding a credible developer
  • May require a large down payment

Bank Financing Pros

  • Larger maximum amount (depends on your proof of income)
  • Longer repayment period

Bank Financing Cons:

  • Lengthy approval process
  • Stringent credit score requirements
  • Additional fees may apply
  • Interest rates may be uncertain in volatile economic situations
  • May require a large down payment

Would like to have a swimming pool in your house?

Our subsidiary, Desjoyaux Pools Ghana, has a special offer for all new homeowners at Regimanuel Satellite City (limited time offer). You can kindly contact +233 050 141 9091 for further information.

 

CategoriesCompany News

RG Group Chairman leads Team to kick-start 2023 with Corporate Prayers

The Chairman of Regimanuel Gray Group, Mr Emmanuel Botchwey, has urged his staff and management to remain resolute for the year 2023, as the Company marked the beginning of the new year with its Annual Corporate Prayers.

While quoting the third stanza of the Methodist Hymn 528 – “Green pastures are before me, which yet I have not seen…” – he urged staff not to rule out the possibilities of challenges during the year but to be confident that the new year also brings along budding opportunities. “New things are going to happen. Be prepared however for the challenges it may come with. Do not waver in the midst of such confrontations, strive to find solutions from the Throne of Grace – Christ! (the author and finisher of our faith),” he added.

Mr Kwesi Abbey-Sam, the Company’s long-standing spiritual father, gave words of exhortation. The Vice Chairman, Mrs Regina Botchwey and Group Managing Director, Mr Ibrahim Bah seized the occasion to also encourage the staff. They both hinted at an improved approach, to operationalising and monitoring the Strategic Plans of all Subsidiaries, from this year onwards. The Leadership of the various Subsidiaries who were present, with their respective teams, included Mr Seth Ntiamoah Jnr (of Regimanuel Concrete Products Ltd – RCP), Mr Frank Ofori (of Bessblock Concrete Products Ltd), Mr Yaw Arhin (of Desjoyaux Pools Ltd), Mrs Joan Folson Agyare (of Regimanuel Gray Estate Management Company Ltd.) and Mr Samuel Bortey of Landing Restaurant.

 

Media Contacts:
Micheal Djanie – mdjanie@regimanuelgray.com
Mrs Bridget Maison – bbotchwey@regimanuelgray.com

CategoriesCompany News

30th Anniversary Launch Thanksgiving Service

This date fell exactly 30 years after the incorporation of the Company which took place on Thursday, 11th April 1991 in Accra. There was therefore no better date on which to launch the Anniversary.

Also in attendance were representatives from the Subsidiaries, Consultants and Corporate friends who have played vital roles in the Regimanuel Gray story, thus far.

The service started at 9:30 am and lasted for about 2 hours. The message preached by Very Rev. Jacob French from Matthew 4:12-25 entailed an encouragement to Regimanuel Gray to appreciate the New Beginnings being ushered in by this 30th year, along with promises of blessings of and peace from the risen Saviour.

In the address, on behalf of Regimanuel Gray Limited, Mr. Isaac Acheampong, the Head of Legal & Admin, honored the Visioneer of the Company and thanked everyone gathered for their support of the Company. He further made mention of the lyrics of Methodist Hymn 427; Make you His service your delight, He’ll make your wants His care.

After the service, the invited personnel as well as the representatives of the various departments in the Company gathered together for a group picture, as shown above.

It was indeed a blessed day and a beautiful event to kickstart the anniversary celebrations.

CategoriesCompany News Industry News

Ghl Bank, Regimanuel Gray Join Forces To Address Housing Deficit

Ghana’s leading mortgage provider, GHL Bank (formerly Ghana Home Loans) has signed a Memorandum of Understanding with Regimanuel Gray Limited to collaborate in the delivery of homes and serviced plots to alleviate the acute housing situation in the country.

The signing ceremony took place at the offices of Regimanuel Gray Ltd at La, Accra, and was attended by senior executives of both GHL Bank and Regimanuel Gray Ltd.

In a significant move, Regimanuel Gray Ltd recently commenced the sale of serviced plots at Katamanso on the Accra – Oyibi road. This unique arrangement allows prospective homeowners to design and build their dream homes on plots serviced by world-class infrastructure delivered by Regimanuel Gray Ltd.

Under the terms of the collaboration, GHL Bank shall offer a special land purchase mortgage to prospective buyers of these serviced plots. GHL Bank shall finance up to 80% of the cost of the land and offer a repayment schedule of up to 10 years at negotiated interest rates. Once the homeowner has acquired the plot of land, GHL Bank shall then provide construction loans for the homes to be built. The homeowner may then repay the mortgage in accordance with a pre-agreed schedule.

Speaking at the signing ceremony, Mr. Kojo Addo-Kufuor, Executive Director of Business, GHL Bank, stated that this programme “gives prospective homeowners the best of both worlds”. He added that “being able to build your dream home, designed to your preference, on Regimanuel-quality infrastructure is a great and unique offer that should excite the market”.

“This MoU is clear evidence of GHL Bank’s commitment to mortgages, home ownership, and real estate developers, at a time when we have transitioned from a mortgage specialist to a universal bank”.

Signing on behalf of Regimanuel Gray Ltd., Mrs. Regina Botchway, Vice-Chairman of the company reiterated that the collaboration is in recognition of the shared aspirations of both companies to move the acquisition of homes and serviced plots much closer to Ghanaians and foreign residents.

She said “we at Regimanuel Gray Ltd are proud to have been one of the forbearers to develop the vision and leadership of home ownership and acquisition. GHL Bank is one of the best partners in the market to work with to help push this agenda”.

The Regimanuel Gray New Territory Project at Katamanso is on a land size of about 1,300 acres and is a master planned to include 17,000 houses, commercial areas, schools, religious centres and sports facilities.

The first cluster at Adom Gate, consisting of about 500 expandable houses of different varieties is almost complete.

CategoriesCompany News

Regimanuel Estates Scoops Three Topmost Property Awards

Building Smart in Ghana: The Story of Regimanuel Gray Limited

ACCRA, Ghana, Jan. 13, 2014 /PRNewswire/ — It’s daybreak in Accra, Ghana, and temperatures are already soaring to a searing 30 degrees Celsius. Jobsites around this southeastern Atlantic seaside city are quickly filling up with workers who for the next 8 hours will toil and broil in unrelenting heat and humidity as they play their rightful role in Ghana’s bubbling construction sector.

By contrast, things are somewhat more relaxed at a sprawling job site in Klagon, where Regimanuel Gray Limited (RGL) is building 1,680 apartment units in collaboration with the Social Security and National Insurance Trust (SSNIT) of Ghana. Here, the construction crews are equipped with concrete formwork smart building technology designed and supplied by Wall-Ties & Forms, Inc. (WTF) of Kansas State, USA.

This highly user-friendly rapid formwork construction technology produces concrete structures at least 3 times faster than with traditional construction methods. The structures are also roughly 5 times as strong as the brick-and-mortar equivalent. It’s cast-in-place steel reinforced concrete construction. It’s the future of Ghana, a rapidly urbanizing nation with a housing deficit estimated at 1.5 million homes.

“Our traditional methods of building are too slow,” admits Mr. Emmanuel Botchwey, Regimanuel Gray Limited’s Executive Chairman, revealing that the entire real estate sector of Ghana has been producing barely 10% of the new homes the country needs to build every year to start correcting its housing shortfall.

Regimanuel is Ghana’s leading homes developer. From its incorporation in 1991, the company has built just over 3,000 homes in Ghana. That is roughly 130 homes every year for 22 years. A decent turnover but Mr. Botchwey has not been satisfied with the output.

In early 2006 at an African housing sector conference hosted by the Overseas Private Investment Corporation (OPIC) in Cape Town, South Africa, the RGL co-founder keenly followed a presentation of Wall-Ties & Forms’ aluminum formwork-based rapid construction technology. He was encouraged by what he saw.

“I thought it was a great formwork technology to introduce in Ghana but we were not ready to implement it at that time as we had just invested heavily in block-making plants here and in Sierra Leone,” he says.

Although the block-making business has been hugely successful with RGL projects consuming just over 20% of the products while selling the bulk to an eager market, at the back of Mr. Botchwey’s mind was the WTF technology he saw in Cape Town in 2006.

For one, reinforced concrete structures compared to brick and mortar – masonry – walls are less prone to cracking; the WTF formwork system doesn’t require a high level of specialized skills and amounts of mechanized and manual labor deployed on conventional job sites.

Additionally, the WTF formwork system has definite cost-saving factors not to mention the speed at which the structures seem to practically grow out of the ground.

“Time is money,” avers Botchwey, adding, “With this technology, you build faster, sell faster and cut down on your overhead. It means you make more money quicker and can pay your workers better.

“If you are using borrowed money, it means you will repay your bank loan in 2 years instead of 5 years, so you save on bank interest payments and share the savings with the home buyer,” says Ghana’s top real estate entrepreneur.

It is against this backdrop that Mr. Botchwey and his team traveled to the Kansas City headquarters of Wall-Ties & Forms, Inc. in October 2011 to discuss the acquisition of WTF aluminum formwork for use in the Klagon apartments development project. The equipment was shipped to Accra mid-last year, and after the initial onsite training, construction commenced in July 2012. RGL has sold most of the apartment units just over a year since the project got underway.

Besides the 1,680 apartments, the firm is collaborating with SSNIT on yet another project to build 42 high-end duplex units in the Community 13 area of Accra. RGL has already acquired WTF aluminum formwork for this new project.

Mr. Botchwey discloses that these two housing development projects have generated more than 300 direct new jobs while contributing significantly to efforts to reduce Ghana’s huge housing deficit.

It gets even better. Regimanuel Gray Limited has recently acquired 1,300 acres in Accra on which they plan to build a satellite city with 17,000 single- and multi-family homes within a series of gated communities complete with schools, hospitals, shopping and recreational facilities, and other community support amenities.

This is indeed a herculean undertaking; hardly any single developer is building such a huge number of homes in Ghana or in any other African country for that matter. But it is possible to deliver the satellite city with the WTF mass housing technology considering that some South American developers have produced as many as 40,000 homes annually using the cast-in-place concrete building technology.

Mr. Botchwey estimates that his company will complete the 17,000 homes project inside 10 years and create thousands of new jobs in the process.

In the interim, RGL’s ambition is to accelerate its annual production rate to reach 500 homes built and sold in Ghana.

Decorated as one of Ghana’s top 100 companies, RGL also has solid plans to start building homes in Liberia and Tanzania in the near future. They have already acquired land for the purpose in both countries.

Structures built using WTF’s precision-engineered concrete forms are smooth and straight; they require minimal or no plastering at all. All the openings are precise, which saves the builder ample time in the process of fitting the doors and windows. Not to mention that the forms are good for a guaranteed minimum of 1,000 concrete pours.

Such are the time and cost-saving factors that persuaded RGL to start building the WTF way.

The recipient of the 1998 Ghana Home Finance Company Gold Award for Best Estate Developer, the Ghana Millennium Excellence Award, and the 13th International Construction Award of Trade Leaders Club, Paris, it is little wonder that Regimanuel Gray Limited, Ghana’s premier home builder, is using the world’s best concrete forming system.

Mr. Botchwey says he is satisfied with the after-sale support he is receiving from Wall-Ties & Forms professionals in the USA and Africa. He is not worried about plausible competition emanating from other Ghana and West African homebuilders discovering the WTF cost-efficient way of building.

Africa, he says, lags behind in the provision of decent shelter. “We have lots of catching up to do; it’s the more reason why we in Africa should use modern building methods such as the WTF technology.”