Homes World Limited

FREQUENTLY ASKED QUESTIONS

Where will the site be?

Clients have a choice of town or city. The exact location shall be determined by the availability of suitable land.

Why can one not know the exact location before hand?

To be able to show the land to the client before the start of the project means the land will have to be bought before the start of the project. This entails borrowing money to buy the land, which in turn will increase the cost of the houses to our clients.

Negotiations are underway to acquire land in the inner cities of Accra, Kumasi and Takoradi for the project.

What about prospective clients who have their own land?

The buildings could be constructed on one’s own land at the same cost.

When will one be shown the exact location of the site?

Clients will be shown the exact location of the land and the building under construction, half way through the delivery period.

What if I do not like the area?

In a particular city or town, there may be several sites from which clients may choose. Even where there are no choices, What Homes World proposes will be among the best residential areas anywhere in the world.

Our sites will definitely be better than plots bought by individuals in remote areas without basic services and amenities, which present safety and security hazards.

What if one wants a custom design?

This can be arranged at an extra cost.

What if one has own design and drawings?

It can be constructed at the cost of the general scheme if the constructed floor areas and the complexity of construction are about the same.

Can I visit the site?

Yes. Periodic and regular site visits shall be organised free of charge for the clients.

Can I change the house type and duration within the contract period?

Yes. The house type and the delivery period can be changed after the new payments have been worked out.

How easily can I have my money back if I decide to opt out of the scheme?

Clients who decide to opt out of the scheme shall have their money back within a maximum period of one (1) month.

What guarantee does one have against shoddy work?

Homes World gives a two (2) year guarantee against material and structural defects not arising out of misuse. Any such defect shall be rectified by Homes world at no cost to the client.

Are there going to be increases of the monthly payments over the period?

No. The monthly payments are fixed over the delivery period.

Late payments

For each month that a client defaults in the monthly payment, the delivery period shall be extended by a corresponding month.

Is there a penalty for opting out of the scheme?

Yes. Clients who opt out of the scheme before the delivery date shall forfeit six (6) months payments to cover part of the costs to Homes World.

Does the delivery period expire?

No. The delivery period does not expire.

How different is the Scheme from a Housing Cooperative or a Real Estate Investment Trust?

A Housing Cooperative builds for its members who pay for the full cost of the development over a long period of time with piecemeal deliveries. The total cost keeps on escalating from day to day. This is an inefficient and expensive way of trying to own a house.

The Valco Cooperative housing scheme was started in 1992 with 252 members. As at 2009, that is after seventeen years, they had built only 201 houses.

A Real Estate Investment Trust (REIT) is an investment in real estate. The expected profit (or possible loss) would or would not necessarily be used in building a house.

The Home Ownership scheme is thus totally different from a Housing Cooperative or REIT. The scheme seeks to build homes for its clients over a specified period of time and at a fixed cost.

The scheme is more like what other Estate Companies do, except that they build over shorter periods (up to 2 years) and their payments – generally spread over four (4) instalments, with an initial payment of 30% of the cost of the house - are not affordable to most workers.

Why would one opt for the Homes Ownership Scheme instead of a Mortgage?

If one could afford the 20% down payment, a mortgage could be a good idea. However the vast majority of workers can neither afford to pay the down payment nor service the loan.

How are you able to achieve such comparatively low prices?

We achieve this through efficiency (based on 25years of research), commitment and selflessness (low profit margins among other things) and large scale developments