Making home ownership a reality through reading and learning

By Nathaniel LOMOTEY

Nathaniel is a Philanthropist and CEO, Nagmas Ltd., Ghana

Home ownership in Ghana has long been seen as a reward for a lifetime of work rather than a structured financial goal that can be achieved deliberately. For many employees, entrepreneurs and young families, the dream of owning a home feels distant amid rising land prices, construction costs and limited access to affordable long-term financing.

Yet history shows that home ownership has never been accidental. It has always been the result of discipline, sacrifice, collaboration and smart financial planning.

Home Ownership

In most developing countries, home ownership emerged through incremental effort rather than instant acquisition. Families saved slowly, built in stages and relied on community support rather than formal mortgages. This self-build culture dominated because financial systems were underdeveloped and long-term credit was scarce.

In Ghana, this tradition created strong ownership values but limited speed and scale. Over 90 percent of homes were historically built through personal savings and informal financing. While this preserved independence, it excluded salaried workers and young entrepreneurs who lacked land or upfront capital.

The Ghanaian Reality

About 42 percent of Ghanaian households own their homes, while a significant proportion remain renters or live in family properties. In cities, rent can absorb up to half of monthly income, leaving little room for savings.

Mortgage penetration remains low, with housing finance accounting for around 1 percent of GDP. This reflects both affordability challenges and limited financial planning among prospective homeowners. Many households focus on monthly survival rather than long-term asset accumulation. The solution lies not only in policy reform but in deliberate financial behaviour.

The Mindset for Home Ownership

Home ownership must be treated as a structured project, not a vague ambition. This begins with disciplined savings and investment habits.

Aspiring homeowners should create a dedicated housing fund and contribute consistently. Automating savings and investing in low-risk instruments such as treasury bills, money market funds, or fixed income securities helps preserve and grow capital toward a deposit.

Beyond saving, individuals must align investments with housing timelines. Every bonus, side income or business surplus should be evaluated for its potential contribution to land acquisition, construction or mortgage reduction.

Repayment Plans

One of the biggest misconceptions about home ownership is that mortgages must last decades. Strategic repayment planning can dramatically shorten repayment periods and reduce interest costs.

Table 1: Practical Mortgage Repayment Plans

Repayment Plan	Key Features	Who It Suits	Financial Impact
Standard Monthly Repayment	Fixed monthly payments over 15 to 30 years	Average salaried workers	Predictable but high total interest
Accelerated Repayment	Additional payments toward principal	Dual-income households	Reduces loan tenure by 30 to 50 percent
Bi-Weekly Payments	Half-monthly payment every two weeks	Disciplined earners	Equivalent to one extra payment yearly
Lump Sum Reduction	Bonuses or windfalls are paid into the principal	Professionals and entrepreneurs	Significant interest savings
Short-Term Aggressive Payoff	High repayment intensity over 2 to 5 years	High earners or collaborators	Minimal interest, faster ownership

René Carayol’s financial discipline principles strongly support accelerated repayment. By prioritising debt elimination over lifestyle upgrades and directing surplus income toward principal reduction, households can transform mortgages from long-term burdens into short-term wealth tools.

Deliberate Sacrifices

Home ownership demands conscious trade-offs. Every successful homeowner has sacrificed something today to gain security tomorrow.

Table 2: Deliberate Sacrifices for Prospective Homeowners

Area of Sacrifice	Common Adjustment	Long-Term Benefit
Lifestyle Spending	Reducing luxury purchases and frequent entertainment	Faster savings accumulation
Vehicle Choices	Delaying car upgrades or buying used	Frees capital for deposits
Housing Choices	Staying longer in modest rental housing	Enables aggressive saving
Consumption Habits	Budget discipline and expense tracking	Improves creditworthiness
Social Pressure	Resisting status-driven spending	Focused asset building

These sacrifices are temporary, but the security and stability of ownership are permanent.

Sources of Finance for Home Ownership

Accessing multiple financing channels increases affordability and reduces pressure on any single income source.

 

Table 3: Key Sources of Finance for Ghanaian Homebuyers

Source of Finance	Description	Best Use Case
Personal Savings	Regular income set aside	Down payments and land purchase
Mortgage Loans	Long-term bank financing	Completed homes or developments
Employer Housing Schemes	Staff loan or housing support	Public and private sector workers
Cooperative Savings	Group pooled contributions	Land acquisition and construction
Rent-to-Own Schemes	Rent converted into equity	Renters without lump sums
Business Income	Profits reinvested into housing	Entrepreneurs and SMEs
Family Support	Structured intergenerational assistance	Deposit or construction phases

Combining these sources allows households to reduce borrowing costs and accelerate ownership.

Collaboration with Financial Institutions and Real Estate Developers

Home ownership is easier when individuals work strategically with institutions. Building relationships with banks improves loan terms and access to financial advice. Engaging real estate developers early opens doors to flexible payment plans and off-plan purchases.

Nagmas Ltd., Ghana, is a housing and development firm committed to making home ownership a deliberate and achievable goal through disciplined financial planning, learning, and practical collaboration. The company offers collective ownership models and solutions. Groups of renters, employees or entrepreneurs can jointly acquire property, share repayment obligations and distribute ownership equity. Rental income from shared properties can further support loan servicing”.

Conclusion

Home ownership in Ghana is not an impossible dream. It is a structured financial journey that rewards discipline, sacrifice and collaboration.

By cultivating strong savings habits, investing deliberately, shared-collaborative ownership, embracing accelerated-repayment strategies, and leveraging diverse financing sources, households can shorten the path from renting to owning. When individuals collaborate with financial institutions, real estate developers and even one another, the barriers to ownership become manageable.

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