Participation of Real Estate Developers in Mortgage Financing: Push and Pull Factors in Ghana
Journal Title: International Journal of Management Sciences - Year 2014, Vol 3, Issue 3
Abstract
Ghana, with a population of 24 million people and growth rate of 2.4% per annum has a housing deficit of about 1,000,000 units as of 2010. It is also estimated that 500,000 houses are needed annually. The government and the real estate companies have constructed houses for sale the but the prices are too high, the cheapest is sold atUS$35,000.Housing industry in Ghana have not been active in the mortgage financing market. The reasons assigned to this includes: payment of high commission per annum by mortgagors, the introduction of indexed mortgages is undesirable to potential and existing mortgages and charging of high prices houses by real estate developers. The study seeks to consider the pull and push factors influencing the mortgage financing market in housing delivery in Ghana. A case study approach was used by focusing on Ghana Home Loans and Ayensu River Estates who are members of Ghana Real Estate Developers’ Association (GREDA). The study revealed that no GREDA members into direct mortgage finance without financial institution. Poor performance of the local economy, in proper address systems, lack of information about potential clients were identified as the push factors. Stable economic indicators like the prime and lending rates, efficient banking systems and proper identification system were also considered as the pull factors. The study concludes that successful mortgage market will depend highly on efficiency of land title system and mortgages must be an attractive investment that will provide investors with positive and risk – adjusted rate of return.
Authors and Affiliations
Isaac Decardi Nelson, Richard Oduro Asamoah
Keywords
Related Articles
- EP ID EP26833
- DOI -
- Views 280
- Downloads 4
Interrogating the Role of Touts in the Informal Road Passenger Transport Sector in Zimbabwe: Acase of Zesa Terminus in the City of Masvingo
The purpose of the study was to interrogate the role and significance of touts in the informal road passenger transport sector in Zimbabwe, with particular reference to the city of Masvingo. The study employed a qualit...
A Quantitative Approach for Clustering Base Stations in Turkey
This study involves an optimization effort for the regional network scheme of the Information and Communication Technologies Authority (ICTA) of Turkey. Current network composes of 7 regions covering every city in the...
Effect of Microfinance Services on Women Empowerment in Nyandarua County, Kenya: A Case of Kenya Women Finance Trust Clients
Women play a crucial role in the economic development of the society but obstacles like poverty, unemployment, low income and societal discriminations mostly in developing countries have hindered the effective performa...
Investigating the Relationships between Perceived Hierarchical Plateauing, Job Crafting, Work Centrality and Work Engagement: An Empirical Study in Emerging Economy
The relationships between perceived hierarchical plateauing, job crafting, work centrality and work engagement were investigated. The hierarchical plateauing scale, the two subscales of the expansion-oriented job craft...
Cost Accounting Systems and Institutional Theory: Analysis in a Uruguayan Terminal Port
The main objective was to increase the understanding of the influential factors that take hold when said organisation experiences the institutionalisation of a change in their Cost Accounting Systems. We used explanato...