Evaluation of Home-Equity Financing Option in a Developing Economy, Illustrated with an Example of Ghana

Foster Jonathan Nyarko, Jonathan Zinzi Ayitey and Emmanuel Kofi Gavu
Additional contact information
Foster Jonathan Nyarko: Department of Land Economy, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
Jonathan Zinzi Ayitey: Department of Land Economy, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
Emmanuel Kofi Gavu: Department of Land Economy, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

World of Real Estate Journal (Swiat Nieruchomosci), 2015, issue 94, 23-28

Abstract: The introduction of mortgage financing in developing economies such as Ghana has been a marginal success. The framework and the macroeconomic environment necessary for a vibrant and effective mortgage finance system is almost non-existent and may demand a considerable period and a lot of effort to correct such anomalies. This study seeks to explore the prospects of equity financing and further suggests its viability in housing financing for developing economies. The survey confirms the most preferred housing finance option to be equity; this situation results in numerous piecemeal developments, many of which never see completion. The study finds out that due to worsening and unstable economic conditions, equity users often encounter a shortage of equity along the line of construction. We therefore conclude that rental housing is a better option for satisfying the housing needs of the majority of Ghanaians.

Keywords: housing; homeownership; equity financing; incremental development (search for similar items in EconPapers)
JEL-codes: H31 R3 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://swiatnieruchomosci.krakow.pl/pl/sklep/pojed ... 4/artyku%C5%82-94-04 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kra:journl:y:2015:i:94:p:23-28

DOI: 10.14659/worej.2015.94.04

Access Statistics for this article

More articles in World of Real Estate Journal (Swiat Nieruchomosci) from Fundacja Uniwersytetu Ekonomicznego w Krakowie Contact information at EDIRC.
Bibliographic data for series maintained by Karolina Orzeł ().