CHALLENGES AND PROSPECTS OF PROPERTY OWNERSHIP IN SANGO ADO/OTTA LOCAL GOVERNMENT AREA, OGUN STATE, NIGERIA

ABSTRACT 
This study investigates the challenges and prospects of property ownership by individuals in Sango Otta L.G.A. The impact of the economic activities and surging population influx in areas with high population growth and urbanization suffer from housing or property deficit due to congestion and local laws bordering property investment in the area. The aim of the study is to assess the challenges and prospects of property ownership with a view to enhancing property development activities in Sango Otta L.G.A. The study investigated the reasons why individuals choose to buy property, the economic and noneconomic and property related factors that impact on property ownership decisions and also examined the property types developed by individuals in Sango Otta L.G.A. It further examined challenges to property ownership. The study population of Real Estate Developers Association of Nigeria (REDAN) in Sango Otta L.G.A. is 356; quantitative research was adopted for the study. The study made use of well structured questionnaire to collect expert opinion on the issue of interest. Performance of the building construction sector (RII=0.84) is the most significant noneconomic driver of investment into property. It is also found that mortgage repayment is the major challenge to property ownership (RII=0.86). The study concludes that financial security, home to live, long term wealth creation are the reasons why buyers choose to buy property. 

CHAPTER ONE 
INTRODUCTION 
Background of the study 
According to Lewis (1994), real property has continued to play a role in human‟s evolution. It is not a coincidence that food, shelter and clothing believed to be the three essentials that sustain mankind, also have some linkage to landed property. Indeed, whether in ancient times or today‟s modern system, land property constitutes a significant index for man‟s wealth, and as economic activities have assumed more complication over time, real property has continued to play role in their development. There is hardly any business venture that does not require to be supported by some form of real property. From the small business that requires real estate as office from where its business can be organized, to the major venture that needs it as its factory. Real property ownership is essentially connected to the economic development and well being of any nation, thereby necessitating some intervention by prudent governments (Ratcliff, 1999). 

According to National Bureau of Statistics (2010) the construction industry in Nigeria is a fast growing sector of the economy which recorded a growth rate of more than 20% between 2006 and 2007, this growth has however, not been commensurate with the growth of Nigeria‟s total Gross Domestic Product (GDP) as the overall contribution of the construction sector to the country‟s GDP remains very low at 1.83% in 2008, Key factors that have contributed to the growth in the construction and property sector include high demand for building across all sectors of the economy(Trade Invest Nigeria, 2012). 

Property ownership is quite significant in Nigeria especially in Lagos, Sango Otta L.G.A. This is basically due to the rapid urbanization and surging population arising from rural-urban and urban-urban migrations created by the natural tendency for people to move toward Lagos as the seat of Federal Government of Nigeria. Ajanlekoko (2007), observed that property demanding Lagos had not been matched with adequate supply. The efforts of the Federal Government to address this led to government‟s encouragement and partnership with private estate developers on mass housing programmes in Lagos (Fortune-Ebie, 2006). As at 2010 there were 356 private estate developers in partnership with the FCDA on mass housing programmes, with 4,158 complete housing property units as against the projected 35, 859 housing units. This gives an achievement of only 11.6 percent of the targeted housing production and calls for more buyers to participate, (Lagos state Administration, 2010). 

Investment decision requires the discounting of future costs and benefits to assess the present value. The optimal allocation ofasset forms an integral part of the investment decision making process (Marks et al., 1991). Landed property, as an investment class with a multiple asset portfolio, has long been accepted by individual and even institutional investors as an important asset class for diversification (Adair et al., 1994). Every purchase of real property is an investment; the investment aspect of real property is based on its durability and use over time (Henderson and Ioannides, 1983). The owner can transfer the property as rent, the owner is treating the transaction as an investment, he could relinquish the ownership in return for capital sum but prefers to retain it and receive an income (Cadman and Austin, 1990). The income in this case is either a cash payable or savings in rent which will otherwise be payable. Real property has a relative durability and element of protection against inflation with greater security (Jin, 2004). Individuals are property developers within the private sector. They acquire buildings or land in order to construct or refurbish building projects on site. Individuals aim to generate a profit, as opposed to the government which aims to provide buildings for social and welfare reason. The buildings that they construct are typically sold entirely or in part to others or retain as assets to produce cash flow via renting them (Berkovec, 1989). Real property may be acquired by auction, tender, private treaty take-over bid or purchase through the operations of developers (Fidelis and Chinedu,2011). 

Statement of the Research Problem 
According to Arrondela and Leferbvreb (2001), property ownership remains invariable throughout time; this is true because nowadays the demand on land and property is increasing due to overpopulation, and urbanization and economic activities that have inevitably influenced the rapid property development increase. The problem of property deficit particularly as indicated by many experts is obviously enormous and complex particularly in terms of quantity and quality, the uncontrollable growth of urban settlements and the development of uncoordinated policies encourage the emergence of the slum (Gumel, 2000). 

Nigeria is a developing country with fast growing economy, it is ranked with an estimated population of over 140 million which growths at an estimated rate of 2.8% per annum, the rate of urbanization in Nigeria has witness tremendous increase in the last decade (National Population Commission, 2006). As such areas with high population growth and economic activities suffer from housing or property deficit due to unassessablity of driving factors that influence buyers‟ decision into property. 

Justification of the Study 
According to Raji (2008), real property delivery in Nigeria is either provided by the government or private sector. Despite the government access to factors of property production such as land and capital, the country could at best expect 4.2% of the annual requirement. The drawback of property deficit is hampered by the overpopulation and urbanization pattern as well as absence of individuals with motivational factors to develop more properties (Daramola, 2009). Therefore, as stated by (Ogungbemi and Olanrewaju, 2016) increase in property ownership through property development is one of the major ways of curbing housing property scarcity in nation like Nigeria that is currently experiencing rapid urbanization. 

Since the aforementioned propertydeficit is a reality that we cannot afford to ignore due to its importance in the overall economy of the nation, the logical step to take is to make a careful and in-depth analysis/study on how the property development can be increased with proper assessment of driving factors that influences one‟s investment decision into property. This is particularly important considering the fact that Nigeria is a developing country. It therefore justify why the study on evaluation of challenges and prospects of property ownership by individuals in Sango Otta L.G.A., Nigeria. 

Aim and Objectives 
Aim 
The aim of this study is to evaluate the challenges and prospects of property ownership by individuals with a view to enhancing property development activities in Sango Otta L.G.A., Nigeria. 

Objectives 
• To investigate the reasons why individuals, choose to buy property. 

• To assess the prospects of property ownership. 

• To examine the property types developed by individuals in Sango Otta L.G.A. 

• To determine challenges to property ownership. 

Research Questions 
In order to comprehend the issues relating to private property ownership decisions, this research laid three questions as follows. 

• Why did individuals choose to buy property? 

• What are the prospects of property ownership? 

• What are the most common property types developed by individuals in Sango Otta L.G.A.? 

• What are the challenges to property ownership? 

Scope and Limitation 
Scope
The study has evaluated the challenges and prospects of property ownership in Sango Otta L.G.A. Lagos state, being one of the fastest developing cities in the world, where the activities of the individuals are obvious in investment properties. The population of the study covers individuals registered with REDAN in Sango Otta L.G.A. properties (Investment properties). 

Limitation
The study faced with lack of cooperation and unwillingness by some individuals, the response rate would have been higher.

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Item Type: Project Material  |  Attribute: 54 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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