Investing in Ghanaian real estate isn’t just about buying a home, it’s about creating wealth,
generating passive income and securing a legacy.
For diaspora investors, the questions are often:
● How much can I really earn?
● What taxes do I need to pay?
● How do I lease my property without headaches?
This guide breaks down ROI (Return on Investment), tax obligations, and leasing
strategies, giving you a clear roadmap to make your investment profitable and secure
Understanding ROI in Ghana Real Estate
Return on Investment (ROI) measures how much profit you make relative to your initial
investment. For the diaspora, this includes:
● Rental income: Long-term tenants, corporate rentals, and short-term vacation
rentals.
● Capital appreciation: Increase in property value over time due to urbanization,
scarcity, and development.
Example:
A 3-bedroom apartment in East Legon purchased for USD 120,000 in 2018 now rents for
USD 1,200/month. That’s an annual rental yield of 12%, not including appreciation in
property value.
Diaspora Tip:
Focus on high-demand areas like Accra, Tema, and Takoradi for consistent rental returns.
These locations attract corporate tenants, expatriates, and students.
Calculating Your ROI
Here’s a simple formula:
ROI (%) = (Annual Rental Income – Expenses / Property Purchase Price) ×100
Expenses may include:
● Property management fees
● Repairs and maintenance
● Taxes and local levies
● Insurance
Example Calculation:
● Property Price: USD 150,000
● Annual Rent: USD 18,000
● Expenses: USD 3,000
ROI=(18,000−3,000 / 150,000 )×100=10%
This simple calculation helps diaspora investors compare properties and make informed
decisions.
Taxes Every Diaspora Investor Should Know
Ghana has specific tax obligations for property owners, including:
- Property Rate (Local): Annual local government tax, varies by district.
- Income Tax on Rental Income: Typically 8–25% depending on the amount.
- Capital Gains Tax (CGT): Applied when selling the property at a profit, currently 5%.
Diaspora Tip:
Hire a local accountant or tax consultant familiar with Ghanaian real estate to ensure
compliance and optimize your returns.
Leasing Strategies for Maximum Returns
Leasing is the easiest way for the diaspora to generate income without being physically
present. Consider:
● Long-term leasing: Steady rental income, minimal turnover, ideal for apartments in
Accra, Osu, and Tema.
● Short-term leasing / Airbnb: Higher income potential, but requires management
and marketing.
● Corporate leasing: Contract with companies for housing expatriates or employees.
often higher yields and lower vacancy.
Diaspora Tip:
Hire a property management company to handle tenants, maintenance, and rent
collection. Your ROI improves when the property is professionally managed.
Minimizing Risks and Costs
To protect your investment and ROI:
● Verify property ownership and land titles before purchase.
● Insure your property and ongoing construction.
● Avoid overleveraging — don’t spend more than you can comfortably finance.
● Track expenses meticulously using apps or accountants.
Planning for the Long-Term
Real estate in Ghana is generally a long-term investment. For the diaspora:
● Focus on areas with strong appreciation potential.
● Keep an eye on infrastructure projects (new highways, business hubs).
● Consider diversifying into multiple properties to spread risk.
Example:
Investing in East Legon and Tema simultaneously allows you to balance high-end luxury
rentals with mid-market steady income, optimizing total ROI.
Using Technology to Monitor ROI
Remote management tools make life easier:
● Property management apps to track rent payments
● Digital spreadsheets for expense tracking
● Video inspections to verify maintenance work
Tip: A structured system reduces oversight errors and ensures your property generates
maximum returns.
For the diaspora, Ghana’s real estate market offers tangible wealth, rental income, and
capital appreciation.
The key to success? Knowledge, verification, and professional management.
At Proptis GH we provide:
● Verified property listings
● Expert advice on taxes and ROI
● Trusted property management contacts
Because your investment should work for you whether you’re in Accra, London, or New
York.
