Key Constraints to Housing Development Finance in Nigeria.
Key Constraints to Housing Development Finance in Nigeria.
A TERM PAPER
DEPARTMENT OF ESTATE MANAGEMENT AND VALUATION
SCHOOL OF ENVIRONMENTAL STUDIES; FEDERAL POLYTECHNIC, NASARAWA, NASARAWA STATE e-mail: fpnas@yahoo.com, Tel.: +234 – 047-66701, 66707 047 – 66238 (DL)
JULY, 2012
BY
UZOKWE, LAWRENCE CHIDI
Department of Estate Management and Valuation
School of Environmental Studies
The Federal Polytechnic Nasarawa,
Nasarawa State.
Email: Uzokwe_Lawrence@Yahoo.Com, 08059128950
ABSTRACT
The focus of this study is to examine the problems that are associated with housing development finance in Nigeria. The study attempts to explore the various sources of finance that are available for real property development with a view to determining the problems that hamper effective flow of fund. The study shows clearly those problems ranging from high interest rates to that of the numerous requirements from applicants for loan, which in most cases they find difficult to meet, bedeviled the financing of real properties in Nigeria. Besides, the inflationary rate in the country also contributes to the problems of financing real property development in Nigeria. It recommended among others that the Nigerian government should try to solve its economic problems such as inflation in order to minimize the problems that plague the financing of real estate development.
Key words: housing development, constraints, housing finance, fulcrum.
1.0 INTRODUCTION
Appropriate financing is all-important to successful property investment and development. Various forms of finance on varying terms from diverse investing agencies are available to the property market. The principal field where various forms of investment finance are employed is that of development where every loan has to be specially personalized for an individual scheme and the particular stages within the scheme. Since housing development in particular involves huge capital expenditure. Finance is therefore an
A TERM PAPER
DEPARTMENT OF ESTATE MANAGEMENT AND VALUATION
SCHOOL OF ENVIRONMENTAL STUDIES; FEDERAL POLYTECHNIC, NASARAWA, NASARAWA STATE e-mail: fpnas@yahoo.com, Tel.: +234 – 047-66701, 66707 047 – 66238 (DL)
JULY, 2012
BY
UZOKWE, LAWRENCE CHIDI
Department of Estate Management and Valuation
School of Environmental Studies
The Federal Polytechnic Nasarawa,
Nasarawa State.
Email: Uzokwe_Lawrence@Yahoo.Com, 08059128950
ABSTRACT
The focus of this study is to examine the problems that are associated with housing development finance in Nigeria. The study attempts to explore the various sources of finance that are available for real property development with a view to determining the problems that hamper effective flow of fund. The study shows clearly those problems ranging from high interest rates to that of the numerous requirements from applicants for loan, which in most cases they find difficult to meet, bedeviled the financing of real properties in Nigeria. Besides, the inflationary rate in the country also contributes to the problems of financing real property development in Nigeria. It recommended among others that the Nigerian government should try to solve its economic problems such as inflation in order to minimize the problems that plague the financing of real estate development.
Key words: housing development, constraints, housing finance, fulcrum.
1.0 INTRODUCTION
Appropriate financing is all-important to successful property investment and development. Various forms of finance on varying terms from diverse investing agencies are available to the property market. The principal field where various forms of investment finance are employed is that of development where every loan has to be specially personalized for an individual scheme and the particular stages within the scheme. Since housing development in particular involves huge capital expenditure. Finance is therefore an
References: P.S. Ogedengbe AND A.A. Adesope: Problem of Financing Real Estate Development in Nigeria. . © Kamla-Raj 2003. ONI Ayotunde Olawande: impact of money market indicators on real estate finance in Nigeria. Paper presented at NIESV Conference ‘ASO 2012’. EFInA and Finmark Trust (2010): Overview of the Housing Finance Sector in Nigeria.