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How To Purchase An Affordable Home In Accra

June 10, 2022

How To Purchase An Affordable Home In Accra

Buying an affordable house is always an option and not a bad one. An affordable house has a propensity to appreciate besides other factors. It is not surprising that most home investors tend to go for low-income houses with an appreciation value.

Some schemes backed up by governments and local councils in Accra Ghana offer up properties for sale or rent below their market value. In most cases, opting for affordable housing by home buyers is a result of the inability to purchase houses at higher prices. This could be due to a low budget, or income and could also be purely optional.

If you are disappointed at being unable to purchase your dream house, look to the bright side and make a good choice about alternative and more affordable housing. This article will help you provide you with smart tips to help you purchase an affordable house in Accra Ghana.

Let’s dive in!

Understand your budget

A good understanding of what you can afford is very important. Ask yourself;

  • How much money do I spend?
  • Do I have debts, big or small?
  • How much money have I saved?
  • What are my expenses?
  • How much am I currently paying in rent?
  • Would paying more for a mortgage or home insurance mean that I can’t save for a vacation or even retirement?

Once you have a clearer understanding of your spending patterns, decide how much you want to put toward a monthly mortgage payment. This amount covers your monthly mortgage payment, principal, interest, taxes, and insurance.

Keeping your finances in mind will guide you when choosing an affordable house to purchase which brings us to the next point.

Determine Your Debt to Income Ratio

Your debt-to-income ratio(DBI) is the monthly gross ratio that goes into the settlements of your monthly debts. Know what your DBI is and compare them to your income. If your DBI is high, the chances of qualifying for a mortgage become slim to none.

In general, if your mortgage exceeds 35% of your monthly income, you won’t be able to apply for a mortgage.

Here’s a pro tip, ensure that your DBI is low when qualifying for a mortgage. One important way to do that is by never spending more than 25% of your income on lodging. This will persuade the lender(bank, etc) in most cases to say yes.

Buy a Damaged House and Fix it

Houses like this are called fixer-uppers or fix-and-flip properties. They require an amount of repair to make it comfortable. However, they are also very affordable and sold for less in comparison to a home that is similar but in better condition. You might consider going for this option if you want to save money or profit when you renovate and sell the house. Improvements made to the house might be cosmetic improvements but if the house needs a major renovation, you might want to add those costs to what you will be willing to pay.

Pro tip– inspect the house thoroughly to expose structural problems that are hidden. This will determine how far you can go in buying a fixer-upper that won’t cut deep into your budget in the process of fixing it up.

Low-Income Loan Programs

Several low-income programs can help you buy a house with low income. In Ghana, the National Mortgage and Housing Finance Initiative has offered mortgages for public sector workers at interest rates between 10%-12% in comparison to the average marketing rate of 28%. This is to promote affordable housing for low-income workers.

Be Smart When Making Choices

Be modest, limit your search to locations that meet your preferences and that suit your budget. You can also co-purchase a house with a partner, friend, or sibling to limit expenses. Zeahomes can help you make better decisions on what accommodations fit easily into your budget.

Employ the Services of a Professional Real Estate Agent

Most home buyers choose not to employ the services of a real estate agent to save money. However, they may end up losing money in the process. A professional real estate agent will make use of expertise and good negotiation skills to meet buyers’ goals at a desirable cost.

A professional real estate agent has real knowledge of the industry and market trends and will be able to help you make realistic decisions based on your budget. A home buyer that does not use the services of a trusted real estate agent may end up making more errors that could have been prevented.

Other Factors. 


Several factors determine if a house at a certain location would be affordable or not. These factors include:

A presence in a location with low traffic; Closeness to hospitals, offices, and schools; Nearness to transits and the urban core. Houses located in these desirable locations tend to be more competitive and less affordable. So, if one or more of the factors above does not matter so much to you, you may be able to afford a home that isn’t as competitive as other homes in the market.

Property type

Buying the right type of property that fits your budget is also recommended. Property types in Accra Ghana include; compound houses, apartments, flats, townhouses, penthouses, semi-detached houses, mansions, etc. Compound houses are one of the most affordable property types in Ghana while apartments and flats are the most preferable.

If you are seeking to buy an affordable home, you might want to consider going for a more affordable option.


You may need an emergency fund for repairs and replacements when you do get a house so, consider not giving up your savings on a big house. Balance size with savings and budget. It is possible to buy an affordable house that serves your purpose but you’ll need patience, adequate information, an open mind, and some work on the house if necessary. Now go get that house!

At Zeahomes, we offer houses that fit your budget. We’re here to empower you by making all things home simple, efficient, and fun, no matter where you are on your home journey. We also offer real estate development and management. Reach out to us today!

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