CHALLENGES ASSOCIATED WITH REAL ESTATE INVESTMENT IN ENUGU NIGERIA
chapter One
1.0 Introduction
Proper financing is essential for successful real estate investment and development. Various forms of financing are available in the real estate market with different terms and conditions from different investment institutions. A major area where various forms of investment finance are used is in the development sector, where each loan must be specifically tailored to the individual project and the respective phase within the project.
Financing is an essential input, especially since real estate development involves huge investments, the essence of which is to provide funds for the economic operation of the company. The cost and availability of funds for real estate development can affect the feasibility of such projects. Despite the importance of development finance in real estate development, there is a lack of information about who finances it, how it is funded, and in what amounts. However, given the general nature of development finance, this is not unexpected.
There is no headquarters or agency to coordinate the real estate financing business.
In the hierarchy of human needs, housing is his second, resulting in: Housing has been a central cornerstone of various federal and state government policies since Nigeria’s independence. The consequences of rapid urbanization are most evident in the rapid deterioration of urban housing, which leads to urban housing poverty, especially since there is no proportional increase in the number of housing stocks.
A home occupies a very unique place in every person’s life, and because of the innate human desire to own a decent home, it is one of the basic human food needs. Stand out. It is a non-profit investment or income consumer only.
Earning capacity is generally low for most working Nigerians, making it virtually impossible for the average Nigerian to save to own a home. is clouding the ability of individuals to own homes.
The economic boom of the 1970s also contributed to Nigeria’s housing problem.
There was excess capital at the time, economic conditions favored property development, and profit prospects were exaggerated as much as the pace of development. The oil boom ushered in an era of urban development that exceeded all expectations, and with it came a massive boom in real estate development. The financial institution quickly committed the property development loan as it determined the risk was minimal.
However, the fall in oil prices in the early 1980s plunged the economy into crisis and recession, severely impacting the real estate sector. Real estate investment and development requires huge capital expenditures, so real estate investors and real estate developers always need to raise funds. This capital is usually higher than the stock of such inverters, and the only way out of this predicament is to finance it with funds other than personal savings. What financing instruments other than equities are available to real estate investors? What problems arise when raising capital from these different sources?
1.1 Research background
Real estate has played an important role in the evolution of mankind. It is no coincidence that food, clothing and shelter, considered his three basic elements necessary for the survival of mankind, have something to do with the land. Food grows from the land on which dwellings are built, and man’s clothing is made primarily of what grows on the land. Both in ancient times and in modern systems, land was certainly an important indicator of human wealth, and as economic activity became more sophisticated over time, land continued to play a central role in its development. Lewis, 1994). Few companies do not need to be supported by some form of real estate.
From small businesses that need real estate as offices to organize their business, to large corporations that need them for their factories. As a result, some very robust and well-thought-out real estate guidelines comprehensively address the challenges encountered in the real estate sector. This is not exactly the case here in Nigeria, causing many problems in the real estate sector (Adewale, 2000). During the course of this study, researchers will provide an overview of real estate investment in Nigeria and the challenges that come with it.
Real estate investment is closely linked to a country’s economic development and well-being and requires prudent government intervention. Such interventions vary in severity from country to country. In Nigeria, an individual could hardly claim a part of it as an owner and therefore could not dispose of it without the consent of the chief.
Proper financing is essential for successful real estate/property investment and development. Different forms of financing are available in the land/property market from different investment institutions on different terms. A major area where various forms of investment finance are used is in the development sector, where each loan must be specifically tailored to the individual project and the respective phase within the project. Financing is an essential input, especially since real estate and land development involves huge capital expenditures, the essence of which is to provide capital so that the company can operate economically (Ratcliff, 1999). The cost and availability of funds for real estate development can affect the feasibility of such projects. The nature of real estate investment in Nigeria needs to be studied in order to find solutions to the challenges involved.
1.2 Problem Description
Recently, there has been a lot of research on real estate investment. This is because real estate investment is the most important source of housing supply for mankind. In the hierarchy of human needs, housing is his second, resulting in: Housing has been a central cornerstone of various federal and state government policies since Nigeria’s independence. The consequences of rapid urbanization are most evident in the rapid deterioration of urban housing, which leads to urban housing poverty, especially since there is no proportional increase in the number of housing stocks. During Nigeria’s economic boom in the 1970s, there was excess capital, and the economic climate at the time was favorable to real estate development, exaggerating profit prospects as much as the pace of development. The recent drop in global oil prices and corruption have made governments unable to invest in real estate. Overpopulation and urbanization have led to a surge in real estate development.
1.3 Purpose of the survey
The purpose of this research is to:
1. Provide an overview of real estate investments in Nigeria.
2. Studying issues related to real estate investment in Nigeria.
3. Identify further avenues for real estate in Nigeria.
1.4 Research question
1. What is Real Estate Investment in Nigeria?
2. What are the challenges associated with real estate investment in Nigeria? 3. What’s next for real estate in Nigeria?
1.5 Hypotheses
E:
There are no challenges in real estate investing in Nigeria.
C:
Real estate investment in Nigeria presents several challenges.
1.6 Importance of research
The significance of this research is as follows.
1. The results of this research will educate the public about the benefits of real estate investing and the challenges it presents, and form the basis for decision-making guidance.
2. This work also serves as a resource base for other scholars and researchers interested in doing further research in this area later on, and to some extent it provides new explanations for the subject when applied. increase.
1.7 Scope/Limitations of Investigation
This study on real estate investment and challenges in Nigeria covers the scope of real estate investment in Nigeria and examines the factors that facilitated or hindered it. It also covers the challenges associated with real estate investment in Nigeria. Research limitations
Financial Constraints – Lack of funding tends to prevent researchers from obtaining relevant material, literature, or information and efficiently conducting data collection (internet, questionnaires, and interviews).
Time Constraints – Researchers will carry out this research in parallel with other academic research. As a result, less time is spent on research work.
1.8 Definition of terms
Attachments:
An investment is a monetary asset that is purchased with the idea that the asset will generate income in the future or appreciate in value and be sold at a higher price.
property:
Real estate consisting of land or buildings.
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