Michael Essien not broke as sports journalist gives details about why the court wants to sell his two houses

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There have been several reports that a court has instructed that former Black star legend, Michael Essien’s houses to be sold to offset some loans he had taken from banks but it’s turned out that, that’s not actually the true story.

In our report yesterday, Ghbase News mentioned that the details were a bit sketchy especially when an auctioneer was said to have valued one of the houses at about $20-$30 million and we were right to have doubts about the full authenticity of the reports.

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Well, popular sports journalist Saddick Adams, who happens to have gotten more information on the story from a close friend of Michael Essience has explained what really happened.

According to Saddick, Michael Essien is not broke or facing any difficult financial challenges as some websites had reported and although it’s true that the high court has asked for two of his houses to be auctioned, it’s not true that he had taken several loans and unable to pay them.

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Michael Essien back then at Chelsea

Per his explanation, those two houses were ones he bought at the start of his career using mortgage loans and after some period handed them to his wife, Akosua Puni and it’s obvious that, the regular payments stopped hence the banks making a move to posses the houses as it usually happens when one fails to make payments for under such mortgage schemes.

Saddick also suggested that Essien is unbothered about the banks taking over the houses as he seems to have more houses under his name in the country and even in other countries around the world, hence reason why he didn’t make an attempt to continue paying.

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Per our own observation too, almost all mortgages in Ghana are priced in dollars, so if you make a mistake and take a mortgage loan in dollars to buy a house in Ghana when you do not earn in dollars, the amount you would be paying each month is likely to increase unnecessarily because of how quickly the cedi depreciates.

Watch the video explanation below:

So let’s say you buy a two-bedroom house at say $60,000 with say an annual interest of about 18%  and at the time, the rate of the dollar to the cedi is Ghc6, without interest that’s Ghc360,000.

Now let’s assume after 2 years, you’ve paid some but now the dollar to cedi has jumped from Ghc6 to Ghc15 and at the start your monthly payments of $500 which was Ghc3,000, then is suddenly now Ghc7,500 a month—-Won’t you get tired if you are not earning in dollars?

Now here at Ghbase News, we are not claiming to know the details of Essien’s arrangement with the banks, but given that he’s no longer playing football and not earning huge salaries like he used to, we are just sure he might have gotten tired as most mortgages can stretch into 20 years.

Perhaps, he feels letting go of the house now, is much better given how our currency has depreciated over the years—- Then again we don’t know the facts so we won’t jump into conclusion and knowing Essien this is not something that he would come out to the media to explain anything.

 

 

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