FINANCING OF REAL ESTATE IN NIGERIA
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FINANCING OF REAL ESTATE IN NIGERIA
ABSTRACT
For a long time, it has been noted that some people live in tents, while others live in thatched mud houses, while others live in decaying concrete buildings, and still others choose to live in tenements, bungalows, flats, and messiness of varying structural strength and aesthetics.
Furthermore, the size and construction materials of these constructions vary widely, and there are location variances. As a result of these discoveries, the study focused on housing issues and why these disparities exist. As a result, the study’s title is “financing of real estate in a democratic society.”
Considering the importance of shelter in many people’s lives, housing provision is supposed to be adequate and supply man’s tastes and desires, but these days, many unfinished buildings exist in our villages and towns,
and people live in any available accommodation because they lack the financial means to complete the buildings and live in accommodations of their choice.
CHAPITRE ONE
PURPOSE OF THE STUDY INTRODUCTION
Housing is often regarded as the third most important need of life, after food and clothing, and as such is in desperate need and demand by both the poor and the rich. Unfortunately, the rate of development has not kept pace with this need and want.
Few people are familiar with the specialist knowledge required for an adequate treatment of studies in real estate, and of those who have been equipped to undertake a defiled study in it, fewer still wish to concentrate their talents on the financing of real estate in Nigeria.
One probable explanation for their hesitation is that establishing even a little contribution requires a significant amount of effort. As a result, the purpose of this research is to identify and analyse the many means or methods by which the government,
private developers, and individuals finance the construction of real estate in Nigeria in order to bring house ownership within the reach of the people.
These ways or methods will be critically evaluated in order to identify their shortcomings, and recommendations will be advanced in order to eliminate the shortcomings and make the method more feasible and viable, eliminate non-feasible and unprofitable methods, and suggest new methods of achieving the stated goal.
1.1 STATEMENT OF THE PROBLEM
As we all know, during the military administration, Ebeano Estate, which is located in the northern zone of New Haven Enugu, was mostly made up of separate houses. Government employees and officers were scarce,
and the value of property development was undervalued. Clearly, the people of Ebeano Housing Estate were not educated of the importance and necessity of real estate projects.
However, with the advent of democracy, the population of government workers or civil servants expanded, and more government offices were established, and the people of Enugu began to recognise and recognise the importance of estate development. As the number of low-income civil personnel increased, Asaba evolved into a commercial and administrative hub.
During the military administrations, there was no true attempt towards real estate finance. This could not be said of Onitsha in Anambra state or Warri, both of which are well-known commercial hubs. During this period, the government’s effort in real estate finance had not gone beyond building office apartments for its workers
and perhaps the building of residences for members of staff or the particular ministry concerned with the above one could simply say that the inhabitants of real estate finance had to resort to borrowing because they had never been business included.
1.2 BACKGROUND OF THE STUDY
Real estate development is a vital and necessary component of urban life. Adequate real estate development has a significant positive impact on both the economic and social lives of city dwellers. Its sufficiency produces the opposite effect.
One of the primary issues confronting metropolitan centres, particularly in emerging countries, is a lack of real estate development. This could be attributable to a lack of funding for actual project development.
Real estate development costs a lot of money. Most city people, particularly those in the middle and lower wage brackets, cannot afford it. The rate of real estate development constriction is frequently low and is generally determined by financial means.
This financial security problem is exacerbated by banking institutions’ aversion to financing for real estate development. Their loan-granting mechanism makes it extremely difficult for the medium and low-income groups to take advantage of the offered facilities. The majority of mortgage loans are made to the wealthy.
1.3 OBJECTIVES OF THE STUDY
The purpose of this research is to identify and anglicise the numerous methods by which the government of Enugu state finances real estate in Enugu. Ebeano should be prescribed in order to bring home ownership within the reach of the average person. These methods will be evaluated rigorously to find their flaws, and recommendations will be made to address the shortcomings.
1.4 SIGNIFICANCE OF THE STUDY’
A study on Ebeano’s real estate development finance is critical for planning purposes. The evaluation of real estate development finance is significant and could be used to attain specific academic goals. It can educate the government, students, and researchers on the significance of real estate development funding.
The overall outcome of this study is aimed to increase public understanding of present sources of real estate development financer in Enugu metropolitan.
1.5 DEFINITION OF TERMS
The Business: This is the Enugu State Housing and Development Corporation. The enabling edict: This relates to Enugu State Housing Finance Corporation Edict No 10 of 1976, which established the corporation’s housing markets.
The formal housing market for sale or rent is the market in which housing with appropriate space, environmental and health standing, full title, and adequate infrastructural provision is available. A second mortgage: Any subordinate mortgage is a mortgage, as are many mortgages on the same property.
Extensions and compositions: An extension is an agreement to postpone the payment of a debt for a set length of time, whereas a composition entails a reduction in the size of a creditor’s claim where there are more than two creditors.
Individual creditors are not obligated by the agreements of the other creditors because they are totally voluntary. The agreements may be reached as a result of legal actions brought before a court, but they are more likely to be reached through private negotiation.
Financial Intermediaries: Financial intermediaries can be defined as institutions or economic units that act as a bridge between surplus economic units and deficit economic units.
They mobilise the surplus units’ savings and make them available to those units who require the funds for either investment or consumption. They are often divided into two types: bank financial institutions and non-bank financial institutions.
Housing Estate: Authors have paid little regard to the definition of “Housing Estate” as a compound term. Rather, “Housing” and “Estate” have been described independently as a piece of land on which dwellings to be built are easily planned,
developed, and regulated using development control, and which is usually focused towards a specific aim and administered as a single entity.
Real estate refers to immovable property such as land and buildings.
Disposal: In terms of housing. It refers to the transfer of ownership or occupation, which may or may not be accompanied by monitory considerations.
1.6 RESEARCH METHODOLOGY
After thoroughly analysing the nature of this study, great care was taken in gathering all important data and information from the Estate surveyor and value and Ebeano housing estate Enugu, as well as the liberty.
A large percentage of the information for this study was gathered through oral personal interviews with all relevant persons and authorities inside the organisation.
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