CHALLENGES ASSOCIATED WITH REAL ESTATE INVESTMENT IN ENUGU NIGERIA
CHAPTER ONE
1.0 Â Â Â INTRODUCTION
Proper 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 tailored for an individual scheme and the particular stages within the scheme.
Since property development in particular involves huge capital expenditure, finance is therefore an essential input, the nature of which is to provide capital to enable the enterprise operate commercially. The cost and availability of finance for real estate development can influence the viability of such project.
Inspite of the importance of development finance in property development, there is dearth of information on the amount of funding that takes place, by whom, or the method used. Though this is not unexpected given the general characteristics of development funding: there is no central agency or institution to co-ordinate the business of property funding.
housing provision has become a paramount conerstone of the policies of various governments both at federal and state levels since independence in Nigeria. The consequences of the rapid rate of urbanisation are most visible in the rapid deterioration of urban housing resulting in urban housing poverty especially as there is no proportionate increase in the number of housing stocks.
The house occupies a very unique position in the life of all human beings and stands out as one of the basic necessities of human beings after food as there is the innate desire of every man to own a decent house. It is the most single noncommercial investment or consumer of income.
For most working Nigerians, the earning capacity is generally low and makes it practically impossible for the average Nigerian to save towards owning a house. In addition, the dwindling economic fortunes in Nigeria which dims the capacity of individuals to own a house.
