The True Cost of Buying a House in Ghana: Hidden Fees You Should Know

As a real estate developer with 15 years of experience in Ghana, I’ve seen many homebuyers get caught off guard by unexpected costs when purchasing a property. While most buyers focus on the price of the house itself, several additional fees can significantly impact your budget. If you’re planning to buy a home in Ghana, here’s a detailed breakdown of the hidden costs you should prepare for.

Before you can legally own a property, you must go through a due diligence process. This includes verifying land titles, checking for litigation, and ensuring that the property has proper documentation. Hiring a lawyer for this process typically costs between 2% to 5% of the property value.

Once the sale agreement is signed, you must pay a stamp duty to the Ghana Revenue Authority (GRA). The fee ranges from 0.25% to 1% of the property value, depending on the cost of the house. Many first-time buyers overlook this charge, leading to delays in finalizing ownership.

If you buy a property through a real estate agent, expect to pay a commission. In Ghana, agent fees usually range from 3% to 5% of the purchase price. Some agents may also charge additional “viewing fees” before showing you properties.

After purchasing a home, you must register the property in your name at the Lands Commission. The registration fee depends on the size and value of the land, but it can range from GHS 500 to GHS 10,000 or more.

Many new homeowners forget that setting up water, electricity, and waste disposal services comes at a cost. ECG (Electricity Company of Ghana) and GWCL (Ghana Water Company Limited) require connection fees, which vary based on location and property size. This can cost anywhere from GHS 1,000 to GHS 5,000.

While not mandatory, home insurance is highly recommended to protect your investment from fire, theft, and natural disasters. Depending on coverage, expect to pay an annual premium of GHS 2,000 to GHS 10,000 or more.

Once you own a home, you’re responsible for paying annual property taxes to your local municipal assembly. The rate is based on the location and value of the property, but it typically ranges from 0.5% to 3% of the home’s value per year.

Even if you buy a brand-new home, you may need minor renovations or furniture. Budget at least 5% to 10% of your home’s price for finishing touches like wardrobes, kitchen cabinets, and air conditioning.