For many Ghanaians, owning a spacious and comfortable home remains a major life ambition. However, the rising cost of land, building materials, labour and other construction expenses has made the dream increasingly difficult for households operating on limited incomes.
Against this backdrop, Republic Bank’s Manager in charge of Mortgage, Frank Oppong Yeboah, has revealed what he describes as a more practical route to homeownership: start small and expand gradually as income improves.
His advice challenges the popular desire among prospective homeowners to immediately construct large and expensive properties, even when their finances may not be strong enough to support such projects.
Build According to Your Financial Capacity
Mr Yeboah urged prospective homeowners to avoid taking on massive loans simply to construct their dream houses in one phase.
According to him, people should assess their current income and resources before deciding on the size and cost of a property.
“You don’t just go about taking a loan and developing a four-bedroom, two-storey house,” he said.
Instead, he recommended that individuals consider beginning with a modest structure that meets their immediate needs before expanding it when their financial position improves.
He explained that a person could begin with one bedroom, a living and dining area and the necessary facilities, then gradually add more rooms over time.
This approach, he said, could reduce the financial pressure associated with home construction while giving families the opportunity to eventually achieve their preferred house design.
Incremental Housing Could Ease Financial Pressure
The concept of incremental housing is increasingly relevant to households that cannot afford to finance an entire property at once.
Mr Yeboah said the strategy allows individuals to build according to their income instead of stretching themselves financially to complete a large house immediately.
“The incremental development is to help you build without stress. Build with your income. Build with your resources,” he stated.
Under the approach, a homeowner could initially construct a one-bedroom house and later add a second bedroom when additional funds become available. The process could continue with the addition of a third and fourth bedroom until the desired property is completed.
Such a strategy could also allow homeowners to avoid committing a significant portion of their monthly income to loan repayments.
Luxury Housing Dreams Can Become Financial Burdens
Mr Yeboah acknowledged that many Ghanaians aspire to live in large and luxurious houses, particularly in some of the country’s affluent communities.
However, he cautioned that aspirations must be matched with financial capacity.
“We all would love to be living in Cantonments. We all want to be living in a five-bedroom house. You have one room as your study, and when you are tired of living in your room, you go to another room and rest. You cannot afford it.”
Frank Oppong Yeboah
His comments highlight a common challenge facing prospective homeowners. While people may desire properties with several bedrooms, studies, guest rooms and other luxurious features, their current earnings may not support the cost of building such properties.
Taking on excessive debt to meet those aspirations could put households under considerable financial strain.
‘Cut Your Coat According to Your Size’
Mr Yeboah therefore encouraged Ghanaians to prioritise affordability when making housing decisions.
“So you cut your coat according to your size. You get something for yourself and your family, and that’s where you begin,” he said.
The advice effectively places financial sustainability at the centre of the homeownership journey.
Rather than waiting until they can afford a large house, individuals could consider purchasing land and developing a modest property that provides basic comfort and security.
As their salaries, businesses or other sources of income grow, they can then invest additional funds into expanding the property.
A Different Approach to the Homeownership Dream
The recommendation from the Republic Bank mortgage manager could encourage prospective homeowners to rethink the traditional perception that a house must be completed in its final form before it can provide value to a family.
For many households, the pressure to complete a large building at once can result in prolonged construction periods, mounting debt and unfinished projects.
Incremental development offers an alternative by allowing construction to take place in stages.
The strategy could also provide families with an opportunity to occupy their homes earlier while continuing construction when resources permit.
Financial Planning Remains Critical
While starting small may reduce pressure, prospective homeowners still need careful financial planning before committing to construction.
Budgeting for land, building materials, labour, permits, utilities and other associated costs is essential. Homeowners also need to consider unexpected expenses that can emerge during construction.
Mr Yeboah’s message is therefore not simply about building smaller houses. It is about aligning housing ambitions with financial realities.
For Ghanaians struggling to enter the property market, his advice offers a potentially more sustainable path: secure what is affordable today and work towards the dream property tomorrow.
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