RESIDENTIAL PROPERTY INVESTMENT AND ITS ASSOCIATED PROBLEMS (A CASE STUDY OF AMORITES ESTATE, OSOGBO)
This dissertation is a model that examines residential property investment in Osun State and its associated problems. The main objective of the dissertation is to examine the means of satisfying additional housing unit requirement in Osun State, particularly Osogbo. The methodology that was adopted or employed in gathering information was the questionnaire method, through which necessary information were collected. This project work was based on the residential property investment in Osun Sate which various literatures were reviewed, new ideas and findings. Pertaining to study topic was added to the existing body of knowledge. This study was carried out with the help of Amorite housing estate Osogbo. The information was collected and presented in bar chart after the analysis of the data. The findings of the dissertation was also stated in clear terms so as to avoid any doubtful, also useful recommendations were made for the government, the private developers (both individuals and corporate bodies). Advice was also given to the financial institution on how they could possibly come into help in the provision of housing units.
1.1 BACKGROUND TO THE STUDY
The benefit derived in the residential property investment cannot be over emphasized likewise the problem encounter in the management of such investment. Thus residential property investment involves making a current commitment of fund in order to obtain an uncertain future returns, the study will examines various investment in the property with emphasis on the residential property investment. However, the appreciation in property value depends upon the location of the property, its demands and supply, the uses to which it can be put in the local market place, because of its appreciation potential, real estate is viewed as a good hedge against inflation. The tendency of construction cost makes it escalate faster than general inflation.
The problem of the residential property investment in Osun State (a case study of Amorite Estate Osogbo) is particularly dealt with and the solution will be preferred for all the problems identified in this study.
This study shall also deal with the other types of investment that are available in the in the property market, like industrial, commercial and Agricultural property investment and also in stock market, the various ways of financing such project shall also be considered.
Amorit Housing Estate which is also refers as “living spring homes” is one of the housing Estates that provide adequate accommodation in Osogbo Osun State. The Estate is situated along Ede road Abere, opposite state Secretariat Osogbo, Osun State which had a total land area of 7.9 hectares with a good land leveled surface. The Estate is sharing boundary with an uncompleted housing Estate on the ring side (west ward), a large expanse of land on the left side (East ward) and delineated in the North by an express road.
Amorit housing Estate started construction in the early 2007 in Osogbo with the aim of providing about 100 housing units consisting of two (2) and three (3) bedrooms respectively for convenience and full accommodation to reduce housing problem in Osun State. The construction of the Estate is divided in to two phase’s i.e phase one and two. The phase one consist of two (2) and three (3) bedroom bungalow of over forty – five (45) housing unit which was the first part to be completed, the buildings were all suited with adequate space for relaxation. Amorit Housing Estate was officially commissioned on the 24th of April, 2009 by Amorit International Limited in partnership with the Federal Ministry of works, housing and urban development and was occasioned by the then Honorable Minister of State for Work, Housing and urban development Chief (Mrs) Grace Ekpewhre (jp) with royal father HRM Oba Munirudeen Adesola Lawal (Laminisa) Timi of Ede Land. However, the Estate Started the construction of the second phase immediately after the completion of the first phase, the second of three (3) bedroom bungalow with duplex on request all ensuit with adequate space. The housing Estate has a conducive environment with aesthetic view with different flower and trees for beautification of the Housing Estate. The Estate has varies facilities to improve standard of living of the residents which includes laws tennis court, shopping mall, swimming pool for relaxation of the residents and constant supply of water and electricity supply and adequate security for the Estate.
Furthermore, the administration work is headed by the director in person of Mr. Kayode Oyewole, assistant of the housing Estate. There are various departments that contribute to the administrative work of the estate which includes: Marketing department, Accounting department, Maintenance department and Engineering department. For proper administration of the housing estate.
Finally, the process for holding a unit in the estate can be gained by purchasing of the application for form #5,000 fees non-refundable and one can be issued with the application form which must be completed by the applicants and must be submitted with the applicant passport.
The mode of payment for the allocation of the housing unit includes the following: Outright payment and Installmental payment. However, Amorite Housing Estate has really established a home for people of Osun state that is measurably the best.
1.2 AIMS AND OBJECTIVES OF THE STUDY
This study aims at analyzing and examining the residential property investment in Osun state and its associated problems using Amorite Estate Osogbo as a case study. In order to achieve the aim, the following objectives shall be adopted.
(1) To examine various means of satisfying additional housing investment in the state;
(2) To determine the viability of residential property investment and realization of the target income;
(3) To identify those risks (problems) involves in residential property investment as well as proffering solution and recommendation to the problems identified.
1.3 STATEMENT OF THE PROBLEM
It has been observed that the available residential accommodation in the state is grossly inadequate to cater for the population of over 3.2 million in the state, this warrant the need for public private partnership in the provision of residential housing accommodation for people.
Closely associated with the housing provision as an investment are the income and the risk attached to it. The researcher; however deem it well to examine the viability of residential investment in the state as well as the risks and problems peculiar to the residential property investment in the state.
Various factors influencing the realization of the targeted income from residential property investment will equally be examined in order to enlighten interested investors and participant in the provision of residential housing in the state.
1.4 JUSTIFICATION OF THE STUDY
The needs for this study are so many at this period of time and these may be summarized as follows:
The dissertation is necessary in the state being a young state in yearning for rapid development especially in the residential aspect especially capital of the state (Osogbo) so as to make housing unit available for the people who are coming into the state.
The study is also necessary in the sense that it will serve as a guide to those that may be interested in going into the property investments so as to know such area where they could encounter problems and how to deal with the problems.
This study will also enhance the knowledge of interested investors and expose them to sources of financing their investment.
1.5 SCOPE OF THE STUDY
The scope of this work shall cover residential property investment in Osun state and is limited to the problems associated with Amorite estate and development, although effort would be made to discuss other type of real estate investment in Osun state.
1.6 RESEARCH METHODOLOGY
The various methods that would be use in gathering the necessary data needed for the study would be maintained. The various methods that shall be used are as follows:
1. SAMPLING TECHNIQUES
i. Stratified sampling
ii. Systematic sampling
2. DATA ANALYSIS
i. Frequency distribution
3. DATA PRESENTATION
i. Histogram and frequency
ii. Bar chat
1.7 LIMITATION TO THE STUDY
It is a phenomenon that in any research where the primary objective is to research for the true fact, a research project of this nature is never conducted without some inherent factors that may make the findings difficult.
The limitations may however include:
(i) Financial constraint
(ii) Lack of cooperation from respondents
(iii) Time factor
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview). Lack of cooperation from respondents is another factor owing to the fact that some of the workers of the organization have little time to give me attention while others pay no attention at all. And lastly time constraint; this is because the researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.8 LAYOUT OF THE STUDY
This research work shall contain the following chapter with each having the appropriate headings to be illustrated further:
Chapter one which consist of introduction, background of the study, aims and objectives of the study, statement of the problems, justification of the study, scope of the study, research methodology, limitation to the study and layout of the study.
Chapter two consists of literature review, conceptual frame work and new ideas added to the existing body of knowledge.
Chapter three contains the mean of achieving the goal of the study, the procedures of data collection and analysis. It will also identify data required, method of data collection analysis and presentation.
Chapter four deals with presentation and analysis of data and information collected in the study area.
Chapter five this chapter will be loaded with summary of findings, recommendation, proffered solution and conclusion.