Real Estate

Developing a Land for Commercial use for Investors in Ghana

There is no shortage of opportunity in the real estate industry as an investor, from investing in
residential, multifamily and commercial properties, the real estate industry offers scores of option investors can pursue. The most under- utilized investment opportunities are raw land investing.
Fortunately for investors, raw land is a limited resource, that makes it extremely valuable.

If you purchase land in an area leading to a development and growth area, it is possible that your land can
become worth even more. Investors should be mindful of due diligence and educate themselves on the
market where they plan to invest. The investor should track the markets cyclical movement, for them to know when to buy and the recent development in their selected market. There has been an overview of raw land as an investment and they are;

1. ECONOMIC FEASIBILITY: like any real estate investment, its critical to determine your desired return on
the property before getting started, because it will lessen your marketing uncertainty and affect your
profit aspect.

2. ACQUISITION: if you get to understand the cost you are likely to encounter and what you will
receive in return. You need to have contractors submit actual bids for the project at this stage
of the process, including the numbers of what you are expected to spend, but also a max offer
price.

3. ZONING: at this stage it deals primarily with the design of the land. This is related to what type
of property should be constructed on the parcel, including looking into local zoning codes. The
zoning code will essentially determine what type of properties that is, whether single family,
multifamily condominium or commercial can be built on lot. When getting started in raw land
investing, its vitally important to understand the areas zoning laws.

4. FINANCING: with the real estate investors, how you intend to use the property will dictate the type of financing you obtain. What you should care the most is the loan-to- cost ratio, it is the amount the tender provides for the project and also generally depend on the type of construction and use of the property. The overall cost is generally between 80-85 percent.

5. CONSTRUCTION: the investor also needs to be aware of the construction financing aspect
project. Generally, contractor will be paid in addition of duties perform, construction lender
holds approximately 10 percent of the construction loan until the project is completed.

6. MARKETING; the final step in the land development. Research on the neighborhood, the
market price and demands for rentals you will be paid when determining your market plan in
place to attract buyers to the property. Working with realtor, online listing. If you are looking for a profitable real estate investment strategy, it may be time to consider developing a land for commercial use. Follow the steps outlined above if you hope to achieve success with land development.

We will “stand by Ghanaians in opposing the momo tax” – Cassiel Ato Forson

 

Source: Nana Yaw Affum-Ankamah

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Seer Janeral

Seer Janeral - Godfred Oduro Boahene CEO - elohaionline.com Elohai TV +233240055557 godfredboahene18@gmail.com

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