ANALYZING RISK OF STUDENT HOSTEL INVESTMENT: THE CASE OF PRIVATE INVESTORS

Abstract

In recent times, there has been a rapid growth of private student hostel (PSH) in Bamahu an area in the Upper West Region, Ghana. This paper aims on ranking the risk types in student hostel investment (SHI) from the highest and commonest to the least and rarest. The study involved a sample size of 72 respondents from private student investors in Bamahu. A self-administered questionnaire was administered to respondents; in effect a 94% response rate was used for analysis. The findings indicate correspondingly from the highest to the lowest; management being the highest risk, environmental risk, inflation risk, legislative risk, liquidity risk, interest rate risk and financial risk being the lowest experienced risk. Among the recommendations are the need for professional student hostel managers, thorough market studies should be undertaken before embarking on this type of this investment. Educate private student hostel investors by GREDA on the risks involved in this kind of investors and the reduction of interest rates.