Frequently Asked Questions
A yield calculation measures the annual return an investor makes on a property, relative to its price or market value. It helps investors decide if the ongoing income meets their specific financial objectives.
The level of rental return you can expect from an investment property is determined by several factors including location and the type of property.
In general, more compact housing such as units and apartments tend to offer higher rental returns than detached houses because the initial investment (i.e. the property’s purchase price) is lower.
A gross rental yield between 5% and 8% is widely considered good. Anything above 8% is usually considered excellent
Go to our yield Chart
There is a capital gain tax of 15% tax to be paid on the difference in the selling price and cost base. This has to be filed within 30 days of realizing the gain. The figure for cost base can include cost of improvements made to the property after it was purchased.
Purchase costs like stamp duty, legal and estate agency fees for example can also constitute cost base.
If it’s your residential property and you have lived in it for more than three years, there is an exemption
It’s also the buyer’s responsibility to pay the stamp duty on the property 30 days after sale. The buyer pays this before registering transfer at the Lands Commission.
Landlords are obligated to pay to the Ghana Revenue Authority, 8% on rents from residential tenancies and 15% on commercial ones.
This is a tax a home owner pays to Metropolitan, municipal and district assembles. This is charged at a rate 0.1 to 0.3% per annum on the market value of the property.
Questions about mortgages
First National Bank (formally Ghana Home Loans)
Cedi Mortgages – around 18% for standard residential mortgages
USD Mortgages – 10-12%
Offers 100% Mortgage
https://www.firstnationalbank.com.gh/loans/homeLoan.html
Absa Bank
Cedi Mortgages – around 22% for standard residential mortgages
Tenor up to 20 years
Loan to value (LTV) 70-85%
USD Mortgages 10.5%
Diaspora Mortgage: 80% financing
https://www.absa.com.gh/personal/borrow/home-loan/
Stanbic Bank
Cedi Mortgages – around 18-23% for standard residential mortgages
Tenor up to 20 years
Loan to value (LTV) 80%
USD Mortgages 10-13%
https://www.stanbicbank.com.gh/ghana/personal/products-and-services/borrow-for-your-needs/home-loans
Ecobank
Ecobank provide local GHS pension backed 100% mortgages at approximately 19%
Diaspora Mortgages – 11.5-12%
Loans normally for periods of up to 15-20 years and for up to 500k
Diaspora Mortgage
https://www.ecobank.com/upload/publication/20251202042144996XEGBTDNBSX/20251202042139337D.pdf
Fidelity Bank
Cedis Mortgages – 19-26%
USD Mortgages – -10-12%
Normally 80% LTV
http://fidelitybank.com.gh/retail/mortgage/
Republic Bank
Cedi Mortgages – 18%
USD Mortgages – 11.5%
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