ENEMS MICROSYSTEMS RESEARCH SPOT: Estate Management

Showing posts with label Estate Management. Show all posts

Sunday 27 August 2023

AN ASSESSMENT OF THE EFFECTS OF TAX EVASION AND AVOIDANCE ON SUSTAINABLE INFRASTRUCTURAL DEVELOPMENT

AN ASSESSMENT OF THE EFFECTS OF TAX EVASION AND AVOIDANCE ON SUSTAINABLE INFRASTRUCTURAL DEVELOPMENT

ABSTRACT

Tax evasion and avoidance are persistent challenges faced by governments worldwide, hampering their efforts to fund critical infrastructural development projects. This research project aims to analyze the implications of tax evasion and avoidance on sustainable infrastructural development, exploring the intricate relationship between fiscal misconduct and the availability of resources for building and maintaining essential public infrastructure. By examining case studies, economic models, and policy frameworks, this study sheds light on the multifaceted nature of the issue and its far-reaching consequences. The research employs a mixed-methods approach, integrating qualitative analysis to understand the motivations and methods behind tax evasion and avoidance, and quantitative analysis to assess the magnitude of revenue loss due to these practices. By leveraging existing literature, governmental reports, and expert opinions, the study presents a comprehensive overview of the current state of tax evasion and avoidance, while also delving into the mechanisms that enable these practices to persist. Furthermore, this project investigates the direct and indirect effects of reduced tax revenues on infrastructural development projects. It examines how diminished funding impacts the implementation of vital projects such as transportation networks, energy facilities, and communication systems. The study also explores the broader implications for sustainable development, social equity, and economic growth within affected regions. The findings of this research emphasize the urgent need for robust policy measures, international cooperation, and improved enforcement mechanisms to curb tax evasion and avoidance effectively. By addressing these issues, governments can enhance their revenue streams, ensuring a more stable foundation for sustainable infrastructural development. Additionally, the study underscores the significance of public awareness campaigns and educational initiatives aimed at fostering a culture of tax compliance and responsible citizenship. In conclusion, this project contributes to the existing body of knowledge by providing a comprehensive assessment of the effects of tax evasion and avoidance on sustainable infrastructural development. By uncovering the intricate interplay between fiscal misconduct and development outcomes, this research offers valuable insights for policymakers, economists, and development practitioners striving to promote equitable and sustainable growth in the face of persistent challenges related to taxation.

CHAPTER ONE: INTRODUCTION

BACKGROUND OF THE STUDY

Taxation is a fundamental mechanism through which governments generate revenue to fund essential public services and infrastructure development projects. Adequate funding is crucial for the construction, maintenance, and enhancement of critical infrastructure such as transportation networks, energy facilities, water supply systems, and communication networks. These infrastructure assets are the backbone of economic growth, social well-being, and overall development within a nation.

However, the issue of tax evasion and avoidance has emerged as a significant challenge that undermines the revenue base of governments globally. Tax evasion refers to the illegal act of deliberately misrepresenting financial information to evade tax payments, often involving activities such as underreporting income, inflating deductions, or concealing assets. Tax avoidance, on the other hand, involves legally exploiting loopholes in tax laws to minimize tax liabilities without violating the law’s letter. Both practices result in reduced tax revenues, which in turn, hinder governments’ ability to finance crucial infrastructure development projects.

Sustainable development, a core principle embraced by international organizations and governments, emphasizes the need for balanced economic, social, and environmental progress that meets present needs without compromising the ability of future generations to meet their own needs. Sustainable infrastructure development is a key component of this agenda, as it contributes to economic growth, poverty reduction, and environmental preservation.

Tax evasion and avoidance defiles sustainable infrastructural development in any constituted society. One of the duties of the government at all tiers is making available infrastructures, referring to roads, utility lines, hospitals, schools, emergency services like fire fighters, ambulance and police, sidewalks, motorable and pedestrian bridges. The basic facilities that make a town or city function effectively are known as infrastructures. Tax evasion and avoidance
can be understood as an act of deliberately causing harm to oneself and fellow members of the society. According to Farayola (1987), Tax evasion is the fraudulent, dishonest, intentional distortion or concealment of facts and figures with the intention of avoiding the payment of or reducing the amount of tax otherwise payable, while Tax avoidance according to Nwakaji and Ewah (2010) refers to a taxpayer’s effort to avoid paying tax by finding a legal loophole in the tax system, it could also be said to be the arrangement of affairs in such a manner as to pay minimum amount of tax due.

The relationship between tax evasion, tax avoidance, and sustainable infrastructural development is complex and multifaceted. Reduced tax revenues limit governments’ ability to allocate resources for infrastructure projects, leading to delays, suboptimal quality, or even the abandonment of vital initiatives. This, in turn, can impede economic progress and hinder the achievement of sustainable development goals.

Despite its critical importance, the intersection of tax misconduct and infrastructural development has not been extensively studied in a holistic manner. While there is a growing body of literature addressing tax evasion and avoidance from legal, economic, and sociopolitical perspectives, there remains a gap in research that comprehensively assesses the far-reaching effects of these practices on sustainable infrastructural development.

This research project aims to bridge this gap by providing a thorough analysis of the implications of tax evasion and avoidance on sustainable infrastructural development. By exploring case studies, economic models, and policy frameworks, the study seeks to unveil the intricate dynamics at play, elucidating the magnitude of the issue and offering insights into potential mitigation strategies. Through a mixed-methods approach, the research endeavors to contribute to the broader discourse on taxation, development, and the pursuit of global sustainability.

In summary, the study addresses a critical area that has implications for economic growth, social equity, and environmental sustainability. By examining the effects of tax evasion and avoidance on sustainable infrastructural development, the research aims to inform policymakers, researchers, and practitioners about the challenges and opportunities in promoting robust revenue streams for the advancement of essential infrastructure within a sustainable development framework.

STATEMENT OF PROBLEM

The quantity and condition of the infrastructures in Ado-Odo Ota local government area gets worse by the day as the population increase due to influx of residents of Lagos state who share boundary with Ogun state, caused by the over-congestion and over-crowdedness of dwellers in Lagos state of which can no longer contain its over-flowing populace. Over-utilization of infrastructures in Lagos state presently causing defects and great unbalance of resources to inhabitants. The outcome of such migration is a large increase in the demand
for sustainable infrastructural development in Ogun state, just as Ado-Odo Ota local government area serves as the choice residence to these migrants due to its proximity to Lagos state.

Over-dependence and over-reliance on the federal allocations has instigated tax payers and collectors in the local government area to relax from their civic duties towards tax. Sustainable infrastructural development can only be achieved where there is minimal or no presence of tax evasion and avoidance. Tax evasion and avoidance have rooted its presence in virtually the entire local government areas in the country but no one seems to know the extent it has gone in particular areas, why they occur there and proffer solution. This study
is therefore designed to add to existing knowledge, the effects of tax evasion and avoidance on sustainable infrastructural development in Ado-Odo Ota local Government area, Ogun state.

1.3 RESEARCH QUESTIONS

In order for this research work to be effective and efficient, it pleases the researcher to ask the following questions:

To what extent does tax evasion and avoidance hinder sustainable
infrastructural development in Ado-Odo Ota local government area?
What are the short and long-run effects of tax evasion and avoidance on
sustainable infrastructural development in the study area?
What are the possible causes of tax evasion and avoidance in the study
area?
What recommendation can be given to the examined problems of these tax
irregularities in the study area?

1.4 AIM AND OBJECTIVES OF THE STUDY

The aim of this study is to examine the effects of tax evasion and avoidance on
sustainable infrastructural development in Ado-Odo Ota Local Government
Area, Ogun state. The broad objective is broken down to the following specific
objectives:

To ascertain the extent tax evasion and avoidance hinder sustainable infrastructural development in Ado-Odo Ota local government area.
To examine the short and long-run effects of tax evasion and avoidance on sustainable infrastructural development in the study area.
To identify the possible causes of tax evasion and avoidance in the study area.
To make recommendation on the examined problems of these tax irregularities in the study area.

1.5 STATEMENT OF HYPOTHESES

The following hypotheses have been posited to aid the research work. The null
hypothesis is denoted as “Ho” while the alternative hypothesis is denoted as
“Hi”.
HYPOTHESIS ONE:

Ho1: There is no relationship between tax evasion and avoidance and sustainable infrastructural development in Ado-Odo Ota local government area, Ogun state.

Hi1: There is a relationship between tax evasion and avoidance and sustainable infrastructural development in Ado-Odo Ota local government area, Ogun state.
HYPOTHESIS TWO:

Ho2: There is no difference between the number of persons that are liable to pay tax and the number of persons that pay tax in Ado-Odo Ota local government area, Ogun state.
Hi2: There is a difference between the number of persons that are liable to pay tax and the number of persons that pay tax in Ado-Odo Ota local government area, Ogun state.

1.6 SIGNIFICANCE OF THE STUDY

This study would be relevant to various tax authorities; the Federal Inland
Revenue Service, State Internal Revenue Service, Local Government revenue
committee as well as their tax officials who are responsible to collect tax
liability from individuals or corporate bodies. It gives them insight on how to
improve the tax administration. The study would also help professional bodies
like the Chartered Institute of Taxation of Nigeria, the Institute of Chartered
Accountants of Nigeria and the Nigerian Institution of Estate Surveyors and
Valuers as well as their members to see the areas of deficiency in the
collections and call for improvement in tax revenue. This study would also be
relevant to the future researchers and any such individual or corporate body
that is concerned with achieving sustainable infrastructural development in a particular area as well as the legislations which will also benefit greatly from this study, because it will form basis of tax policy formation, implementation and administration.

1.7 SCOPE OF STUDY

It is focused on studying the discernible and foreseeable effects of tax evasion and avoidance on sustainable infrastructural development. The study will focus primarily and precisely on Ado-Odo Ota local government area in Ogun state, to enable the studier carryout an extensive study on this subject. The geographical scope to be covered is strictly limited to Ado-Odo Ota local government area in Ogun state.

1.9 LIMITATION OF THE STUDY

It is not strange for a research to encounter some difficulties in the course of research and these encountered in the course of this research include:

1. Inadequate time due to the combination of class schedule and project work.

2. Lack of full cooperation by some of the respondents and some who refuse to receive the researcher and some afterwards delayed in giving back the questionnaire.

3. Financial constraints though this is always a major limitation in studies of this nature, since the researcher may not have enough money to carry out all the necessary research.

4. There are areas where data is available but the researcher cannot lay hands on them because the relevant information is sometimes termed confidential and unavailable to outsiders.

Despite all this limitations and hindrances mentioned above, the research study no doubt turned out to be successful.

1.10 DEFINITION OF TERMS

There are some terms used in this study and proper understanding of the terms is important in appreciating this study:

1. TAX: Tax can be defined as a charge by government on persons, corporations, estates and trust for the purpose of raising money for government expenditure (Umezuruike, 1998). Ifediora (1998) also defined tax as the sum of money demanded by the government for its support or for specific facilities or service, levied upon incomes from property, sales and services. Eribo (2010) emphasized that taxes are normally paid by the eligible citizens of any political system as a legal obligation, regardless of the extent to which they benefit from the services the proceeds finance.

2. TAX EVASION: Tax evasion is the fraudulent, dishonest, intentional distortion or concealment of facts and figures with the intention of avoiding the payment of or reducing the amount of tax otherwise payable (Farayola, 1987).

3. TAX AVOIDANCE: Tax avoidance refers to a taxpayer’s effort to avoid paying tax by finding a legal loophole in the tax system, it could also be said to be the arrangement of affairs in such a manner as to pay minimum amount of tax due (Nwakaji & Ewah, 2010).

4. TAX LIABILITY: This is the amount that is borne by the tax payer (Ihuoma, 2013).

5. PAYE (PAY AS YOU EARN): This type of tax is based on the earning of the tax payer (Ihuoma, 2013).

Monday 24 April 2023

ANALYSIS OF REAL ESTATE RISK IN RESIDENTIAL PROPERTY INVESTMENT IN ADO EKITI

ANALYSIS OF REAL ESTATE RISK IN RESIDENTIAL PROPERTY INVESTMENT IN ADO EKITI

(A CASE STUDY OF FLORENCE COURT ESTATE)

ABSTRACT

This study analysis the real estate risk in residential property investment in Ado Ekiti with particular reference to Florence Court Estate. To achieve the stated aim above, the researcher identifies the types of residential real estate investment, identify the residential real estate investment risks, analyze the factors responsible for the identified risk and examine the challenges of residential real estate investment in Florence Court Estate. The researcher adopted survey design which offers the opportunity to gather relevant data from the population of interest which comprises of property developer, investors, landlords, tenants and estate agents or property agents in Florence Court Estate. The data gathered were presented and analyzed using the descriptive statistics. The findings of this study based on the data presentation and analysis shows that the real estate risk in residential property investment in Florence Court Estate are majorly as a result of lack of housing provision and financing in both the public and private real estate sector, change in government policies which makes the real estate sector prone to political uncertainty that can adversely affects real estate investments. Research also shows that lack or improper implementation of development control poses a great risk in residential property investments as the appropriate authority did not carry out their responsibility diligently in areas of zoning, approval of plans, provision of Certificate of Occupancy and other development control measures. Finally the study recommend that real estate investors should make preliminary investigation in residential real estate market in Florence Court Estate before venturing into investing their money so as to identify the risk inherent and try as much as possible to reduce it, property owners, investors and developers should ensure that they comply with the provisions of development control authority thereby reducing the risk of demolition, environmental degradation and natural disaster which arise from developing a property in a site which are prone to environmental risk and the government should make concerted effort towards reducing the stress and time of processing C of O so that investors can easily identify who the real owners of land are therefore reducing the risk associated with land acquisition.

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of study

Residential real estate investment, like life itself, comes with its own associated risks and these risks are events that could bring harm or loss to an investment. A risk is that probable event that could lead to depreciation of the value of property or outright loss of investment (Clayton, 2007). The existence of such factors should not discourage an investor from investing but rather use the knowledge of residential real estate risk analysis and management that the researcher is examining to help secure an investment. The primary residential risk in real estate investment in Nigeria is the possibility of falling into the hands of fraudsters. Fraudsters sometimes attempt to sell a property that does not belong to them. This is another source of issues for investors but could be eliminated by engaging the services of professionals to help investigate the title to the property that is being sought for purchase and to ensure that all the documents needed from the seller are prepared, signed and collected (Fisher, 2005).

Another possible residential real estate risk investors may face as a real estate investor in Nigeria is government or political risk. Because of the wide ranging power of the executive arm of government and fluidity of functions, the government could acquire private land but the land so acquired must be for public purposes. Unfortunately, there are several instances where government had acquired private land for “public purposes” and “development control” only to turn around and allocate to other individuals to use for their own private projects. Some have experienced their Certificate of Occupancy revoked by a new government due to the fact that the owner does not belong to the same political party. This kind of policy inconsistency is a major discouragement to investors. They should be that as it may, whenever investors are planning to purchase a land in an area, engage professionals (e.g. Estate Surveyors and valuers) to confirm whether or not the land is under acquisition by government or could not be sold (Black, 1986).

At other times, after government had acquired family lands and compensated the appropriate families, some of the traditional land owners still go ahead to sell portions of those lands to the unsuspecting public. Many people purchase such lands and begin to build without government building approvals. The implication of this, as many have painfully learnt, is that when government decides to take possession and pull down the structures on such lands, such a purchaser will not be compensated by government. It is also important to note that some areas have already been acquired or building developments in such areas already restricted (Syz, 2008). For instance, land under the power cables should not be built upon. Many are flaunting this law but should the government decide to enforce such regulations, several people would be affected.

There are also financial risks involved in residential real estate investment. If an investor decides to use a bank loan to buy a property, there is need for the awareness that what we call mortgages in Nigeria, is technically a residential loan. Ideally, a real estate/home loan should be a single-digit interest loan, but what Nigeria currently have are double – digit residential loans. Although, the government established a National Housing Fund (NHF) single-digit-interest loan that could advance a contributor up to N25m, many have not been able to access the loan due to bureaucratic bottlenecks and red tape. Some who have accessed the loan have had to apply for a bridging loan at residential double-digit interest rates in order not to miss their desirable property.

Despite its inherent risks, residential real estate presents a compelling opportunity for investors. Not only does the sector provide many long-term investment benefits, including healthy income returns and a hedge against inflation, but fundamental factors such as the improvement of the risk/return characteristics of the overall mixed asset portfolio. The case for investing in residential real estate looks particularly attractive when viewed in the context of the current market environment, although it is not without risk. Perhaps the most obvious reasons why residential real estate merits inclusion in a management portfolio are derived from both cyclical and noncyclical factors – specifically, the favorable long term outlook for real estate demand, from both users and investors, property cash flows and real estate’s potential inflation hedging characteristics. The liquidity of residential real estate provides investors the most efficient means to obtain exposure to property markets globally. The ability to trade daily not only provides a useful tool for investors to create tactical allocations to the sector and global regions, but it also provides a means to efficiently re-balance allocations as market conditions change.

1.2 Statement of Problem

It is very important for investors in residential real estate to first ascertain the risk factors of an investment asset before committing investment funds to such investment. Investors’ informed decisions with respect to the risk and develop strategies of real estate investments in order to ensure profitability. Residential real estate investment is usually rental properties intended to generate a return from rental income or capital appreciation. Investments in these real estate assets are associated with multiple risk complexities which includes: investment illiquidity, asset value volatility, asset valuation inaccuracies, leverage-amplifying negative performance during falling markets, limited/ imperfect benchmarks to gauge closed-end fund performance, combination of a large lot size (capital intensive investments) and high transaction costs. However, the researcher will provide an overview of residential real estate risks in Ado Ekiti.

1.3 Aim and Objectives of the Study

The main aim of this study is to analyze the real estate risk in residential property investment in Ado Ekiti – A case study of Florence Court Estate.

To achieve the stated aim above, the following objectives are pursued:

To identify the types of residential real estate investment in the study area
To identify the residential real estate investment risks in Florence Court Estate
To analyze the factors responsible for the identified risk.
To examine the challenges of residential real estate investment in Florence Court Estate

1.4 Research Questions

The researcher deem fit to find answers to the following research questions to enable him achieve the desired aim of this research:

What are the types of residential real estate investments in Florence Court Estate?
What are some of the risk investors may face in residential real estate investment in Florence Court Estate?
What are the challenges of residential real estate investment in Florence Court Estate?
What are the causes of the identified risk in residential real estate investment?

1.5 Significance of the Study

The finding of this study will be of benefit to the following groups; firstly, investors who bear the cost of property development, secondly, the tenants and thirdly, real estate firms who are involved in the management of properties. This will again enable the investors to understand the trends of property investment as it relates to its cost in the face of risk. The research will also be of great importance to students and researchers who are interested in studying the real estate investment risk on residential properties.

The government and the financial sectors regulators (CBN) will find this research useful as it highlights the risk of residential real estate investment /development and provision of sustainable housing for her teaming citizens.

1.6 Scope and Limitations of the Study

The study helps to analyze the risk of residential real estate investment in Florence Court Estate.

Some factors militated against the success of this work, though the researcher endeavored to accommodate them. Thus, some of the constraints inherent in the course of carrying out the research include, among others, the peculiar nature of real property market. It is not like commercial markets where one can easily come face to face with both the buyers and sellers to get information he wants. In real property market, information is not easily circulated among Estate Surveyors. Vital information required by the researcher from some respondent Estate Surveyors were not collected due to pressure of work and other commitments facing them during the time the researcher required those information.

1.7 Definition Of Operational Terms

Market analysis: The market analysis is activity of gathering information about conditions that affect a market. A market analysis studies the attractiveness and the dynamics of a specific market within a special industry.

Development risk: Development risk is defined as the risk that the leasing or sale of the project will generate insufficient returns to cover cost and create the desired return due to a lack of sales or inadequately meeting the needs of the market in terms of type and location. The more unusual a particular type of project is for the developer, the higher the chance that the developer will misread the market and the higher the development risk. (DICKINSON, 2001)

Building site risk: This is the risk that the selected site is unsuitable, or needs to be modified at cost to become suitable, for the intended use due to environmental issues (such as contamination) or its natural characteristics (stability, water levels, subsidence etc.) (DICKINSON, 2001)

Risk Management: Risk management as a systematic and integrated approach to the management of the total risk that a company faces risk management is the process of identifying, assessing and controlling threats to an organization’s risk. (DICKINSON, 2001)

Market Value: This is the worth of an interest in property in which measurable buyers and sellers would agree to, when referred to market with existence of condition for comparative market application. Market value can also be defined as the higher price in terms of money which a property should bring in comparative or open market under all condition requisite to a fair sale, the buyer and seller each acting prudently, knowledge and assuming the price is not affected by undue stimulus. (Wendth and Paul, 1979)

Value: This is the monetary worth of a thing that is expressed as the value of the goods or services measured by the amount of other goods and services for which it will be exchange. (Wendth and Paul, 1979)

Residential Properties: Residential properties are those properties that are occupied for the purpose of providing shelter to the occupants and serves as a habitation for them. Residential properties are properties providing housing accommodation, (Leramo,1992) Residential properties are generally constructed to mean property primarily acquired for residence and its attributed to giving shelter, security, comfort, privacy, investment, and personal identify, (Malady and O’ Donneland, 1994).

Property: Legally there are two types of property. They are real property which is land and buildings and personal property that is all kinds of personal possession. In economic the term property means anything that yield interest or income to the owner,

The terms property is defined as the bundle of right invested in a persons or a cooperate bodies over a specific parcel of land, buildings object, e.t.c in the relation to other persons which gives right to use and enjoy and control on the land.

1.8 Types of Residential Properties in Florence Court Estate

The followings are some of the residential real estate investments in the studied area:

1. Apartment or Flat – An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors.

2. Multi-family house – Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.

3. Terraced house or townhouse– A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space.

4. Condominium – A building or complex, similar to apartments, owned by individuals. Common grounds and common areas within the complex are owned and shared jointly.

5. Cooperative – A type of multiple ownership in which the residents of a multi-unit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

6. Semi-detached dwellings

7. Duplex – Two units with one shared wall.

8. Detached dwellings

9. Tents – Usually temporary, with roof and walls consisting only of fabric-like material.

Sunday 12 March 2023

AN ASSESSMENT OF THE ACCESSIBILITY OF HOUSING AND FACILITIES IN THE URBAN-RURAL FRINGES OF NASARAWA

AN ASSESSMENT OF THE ACCESSIBILITY OF HOUSING AND FACILITIES IN THE URBAN-RURAL FRINGES OF NASARAWA

(A case study of Nasarawa Town)

ABSTRACT

Housing in the developing world and indeed the entire world, must be seen as a political and socio-economic problem rather than a technical one. So must be without exception, within the Nigeria context. It is an obvious fact that all sectors of the society have not been fully taken care of our urban housing policies and programme. However, this project is aimed at examining the assessment of the accessibility of housing and facilities in the urban/rural fringes of Nasarawa.

CHAPTER ONE

1.0 INTRODUCTION

In developing countries a substantial and growth proportion lives or around metropolitan area and megacities, including the zone termed the “Urban fringe” where their livelihood depend to some extent on resources such as land for food, water and fuel, zones are often overexploited. Although heterogeneous in its social composition, the urban fringe constitutes the habit of a diversity of populations, including lower income group who are particularly, vulnerable to negative externalities of both rural and urban systems. These include, risk to health, life and physical hazards related to the occupation of unsuitable sites, lack of access to clean water and basic sanitation and poor housing conditions, environmental changes also impinge upon the livelihood strategies of these communities by decreasing or increasing their access to different types of capital (Umeh 2010)

Nigeria has been experiencing a great transition from rural to Urban oriented economy, which has been accompanied by the increasing mobility of production factors such as capital, labour, technology and information to the Urban fringe near these cities such as Nasarawa, Lagos, Kano, Benin, Aba, Kaduna etc. consequently to the wide spread beliefs that Urban fringes are fashionable area in urban literature especially in developed countries (Dupont 2005). The UN-Habitat report (2005) has indicated that, in the year 2025, 16% of the 5 billion world population will be urban and most mega-cities will stand in what we call the “south cluster”. About 55% of these development will occur at the urban hinterland widely referred to as pen-urban, suburbs, urban fringe, city edge, metropolitan shadow amongst other. Because of proximity to the city, the zone experiences much of urbanization process and serves as buffer for future urban development.

There are forces that shape the urban fringe landscape. One prominent features in Nigeria, particularly Nasarawa is the informal sector activities and its attendant problems on urban fringe.

1.1 SCOPE OF THE STUDY

The significant role played by the housing in the life of an individual, a community or a nation brings to time the importance of management of such properties management has a very significant place in property investment hence there is a need for adequate provision to take care of management became a country that goes on building but does not effectively manage what it has built is quite simple making history and at the same time destroying it immediately. Thus, the research work intends to examine the accessibility culture of most owner of residential property in Nasarawa town which is one of the growing town in Nasarawa state.

1.2 PROBLEM STATEMENT

The urban fringe is often defined as a remote zone at the interface between urban and rural landscape. It is frequently ignored as a specific area within the study of urban housing. Recently, there has been an extra-ordinary revival of interest in urban fringe issues as a result of the exceptional evolution in urban growth. However, in spite of multitude of generalizations in urban theories, little is known on the housing quality of this area.

This research therefore is to examine the relationship between housing quality, information sectors and urban fringes. Social, economic and cultural characteristics as well as environmental issues associated with people living in this area to be examined so as to impact knowledge that can transform these areas. These because, it has been observed that little is known about the people living in the urban fringes of Nasarawa.

This study identify the urban fringe with a view to providing explanations on the housing quality of residential housing in urban fringe slum measured by environmental conditions in the town of Nasarawa- Nigeria.

This study seeks to fill the gap on the emerging socio-spatial by advances knowledge on the socio-economic of the residents of the urban fringe in developing countries using Nasarawa town as a case study.

1.3 AIM AND OBJECTIVES

The aim of this project is to examine the factors militating against effective housing quality in the urban fringes of Nasarawa town. To achieve this aim, the following objective shall be perused.

To identify the urban fringes in Nasarawa.
To examine the socio-economic characteristics of residents in Nasarawa town.
To examine the physical characteristics of residential in Nasarawa town.
To examine the solution to the identify problems.

1.4 METHODOLOGY

In order to reach the above mentioned objectives, the study will include a study intended to consolidate secondary data. The secondary data will include available land use maps of Nasarawa from previous publications and ministry of land to demarcate fringe areas of Nasarawa. The National Population Commission, NPC census figure will be used fo[r projecting population of the area and determination of sample size, official documents case studies of successful intervention and other relevant secondary literature.

In addition, this assessment will be based on existing information from reports, such as the most recent UN-HABITAT global report on human settlement and state of the world cities reports. The analysis draws on comparative evaluations on the topic carried out by major international organization such as UN-HABITAT.

Primary data relating to housing quality were obtained by means of structured questionnaires administered on a systematic sample size of 500 household heads in Doma Road at Lafia from a sampling frame of 5000 housing units. The primary data include five hundred household questionnaires; this will be used to elicit information on the socio-economic characteristics of respondents of the urban fringe, physical and neighbourhoods characteristics and housing quality in the selected local government metropolitan region in Nasarawa town.

Saturday 4 March 2023

STRATEGIES FOR EFFECTIVE MANAGEMENT OF PUBLIC HOUSING ESTATE IN NIGERIA

ABSTRACT

In the Nigeria context, the public housing estate constitutes an active and major part in prospect development. Without the support of the government providing the public with housing estate, there will be housing shock/shortage in the country but the major problem after financing the structure is the effective management of the public housing provided. This term paper is aimed at examining the strategies for effective management of public housing estate in Nigeria. Literature was reviewed and it was discovered that public estate can be properly management if all the required facilities are available. It was recommended that allocation of accommodation to tenants should be passed on certain policy and point allocation. That allocation accommodation should be those that desired it and make judicious use of the house. In fact, allocation should reflect the need of the tenants and ability to pay the rent and other liabilities that will arose in the process of management.

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

There is no universal accepted definition for management, it can however be looked at as the science of organization and operation or at the practical level, the act of directing and conducting affairs. Management elements, or functions. Activities include forecasting, planning, commending, co-coordinating and controlling, the functions should be well integrated by a valuer in order to effectively manage the estate to obtain optimum return.

Lawal, (1999) define management as an objective for providing a policy for decision or economic direction. i.e. management can be viewed as a decision making process. Management entails the selection of goals and planning, procurements, organization, coordinating, and controlling of the necessary resources for the desired achievement.

Allsop (1979) defines management as science organization and operation or at a particular level, the act of getting things done in an efficient manner.

The management of public housing estate can be defined as the use and direction of nation’s land resources in order to receive maximum return for the community as a whole. The decision taken in respect of administrating, planning asset must always be viewed against the pattern, the political priority for the community as a whole. Where the interest of the estate and public at large seem to conflicts the estate differed.

However, the country that goes on building but will not effectively manage what it has built is quite simple making history and destroy it immediately putting out a very good structure is not the only thing necessary in housing delivery but sound management and effective maintenance of the built structure. The building without proper management and maintenance can be likend to a new born baby. To obtain a maximum return on property, proper management for the particular property has to be adopted. One has to become to the real understanding of the fact that property management is not a test work rather it requires variety of skills and experience before the management can be effective. At this point, we the management techniques of public housing estate in Nigeria will be examine.

1.2 Aim and objectives of the study

This study is aimed at examining the sustainable strategies applied to the management of public estate in Nigeria.

To achieve the above aim, the following objectives will be pursued;

To examine the meaning and management functions as relation to public estate.
To examine and analyze the problems inherent in the management of public estate.
To ensure the proper use and maintenance of the management of public estate.
To make useful recommendation that would improve the management of public estate.

1.3 Need for the study

The need for the management of public estate is not known by all and that is why the general public need to be highlighted. Even though if the public estate do not belong to private individual, there is need to manage estate property because when the government gets back their desired amount in return from the estate then the (government) would push their resources elsewhere and the money gotten from the estate can be used to pay the professional field and maintain the estate.

Scope and limitation of the study

This term paper is limited only to the management strategies of public housing estate. Some of the constraints encountered in the course of carrying out this research include; lack of adequate finance, time constraints, inadequate materials in the library. Also the epileptic power supply and inconsistent availability of network posed problem. But the researcher was to gather enough material to justify the validity of the research.

1.5 Methodology

In achieving the objectives of this research, secondary source of data collection was adopted.

General information

Most of the information used in this project are past ideas for this work was collected extract from journal and lecture notes, gadgets, unpublished texts, literature past project, newspaper and verification of past records etc. the analyses of data collected is used properly.

THE EFFECT OF RISING PRICES OF BUILDING MATERIALS ON PRIVATE RESIDENTIAL PROPERTIES

(A CASE ABUJA MUNICIPAL AREA COUNCIL)

CHAPTER ONE

1.1 INTRODUCTION

Housing is one of the essential necessities of life beside food and security. Hence every rational man is desirous of owning a personal house or at least has an opportunity of living in a better accommodation with required basic facilities and utilities in a conducive environment. Shelter is one of the most priorities in our scales of preference when it comes to his needs, this due to its major determinate of productivity Welfare and state of being. Unfortunately, the need is limited in supply worldwide, the cause of this shortage are many. But one of this causes which form basis of this research work is the cost of building materials. The research will examine in practical terms how the cost of building materials has affected private residential properties in Nigeria Generally, and Karu area municipal council in particular. It also proffers remedies to tackle the problems on how our teaming population could be house adequately. Karu has been of the residential area within Abuja municipal area council which has gained tremendous attraction of various dwellers and development for various purpose like wise Nyanya, Durumi, Dutse etc. such attraction has been sequel to the development of private residential properties in the area this write up shall comprise of five chapters chapter one with introductory part of the research while chapter two Is made up of the conceptual frame work which encompass meaning and nature of residential development; also chapter three which research methodology while chapter four treats data presentation analysis, finally, chapter five is the summary of the findings, recommendations and conclusion.

1.2 BACKGROUND KNOWLEDGE OF THE CASE STUDY

Abuja, being Nigeria capital came in existence by virtue of the decree No 6 of 1978, however it has assume that status of nation capital on the 12th December, 1991 when the seat of government was moved from Lagos to Abuja where it take it seat to data the trip of relocate the capital, federal republic of Nigeria began in august 1975 during late General Murtala Mohammed begin on assumption of office, the late General promised to address the deteriorating condition of Lagos and find lasting solution to it is as it becomes clean and in impracticable for Lagos to be retained as the federal capital in order to solve these problems once and for all. The late General Murtala inaugurated distinguish chairmanship of retired Honorable justice Akintola Aguda. The committee was charged with among other these tasks or recommending sweat able and alternative location, having regard to the need for easy accessibility and for every part of the federation. After the committee findings, the report submitted to the federal military government on 20th December. 1975 stated that the total land area in Lagos is estimated to be about 61.72 M2 which was grossly inadequate to be used for federal capital city not to even sharing it with Lagos state government.

The federal capital should be moved out of Lagos and be relocated to the central of the country, and area covering about 8000 M² and situated south of the present Suleja, Niger state. All these recommendations were accepted by the government and promoted the promulgation of federal capital at decree No 604 of 1976, which created the federal capital territory on 5th February, 1976 and vested the ownership and control of all land in the federal capital territory on federal government as well as the administration of the federal capital territory.

1.3 STATEMENT OF THE PROBLEM

The indent study of this problems can be or will be examined by looking at how and to what extent or degree in which rising cost of building material have affected residential (private) property development, what are the effects of rising costs of building material’s in the study area (Abuja Municipal Area Council).

1.4 PURPOSE OF THE STUDY

Nigeria suffers from deep problems that undermine housing and construction companies, so this aspires to reverse the main holding factories o these problems. One of the reason is population growth. Specifically, the average age in Abuja is a mere 18 years. Moreover, Nigeria population growth rate is 2.90% (Central Department of Statistic and Information, 2012). Oil price also seem to be an enormous factors, because it cost more on transportation of personal, shipping of materials, manufacturing and so on. Another factor underlying economic problem, such as inflation, in addition, government project, such as subsidized schools and hospital that helps to cover the high population growth seems to be contributing to higher price.

1.5 OBJECTIVE OF THE STUDY

The project is to examine the effect of rising cost of building materials on private residential property development with a view to recommending positive solution by taking Abuja as the only municipal to carry out informative aims. The following objectives shall be undertaken,

To examine the type of building material mostly patronized, weather local or foreign.
To examine the trend of the price of building materials between 2006 and 2014.
To examine the trend of building materials in Nigeria.
To ascertain the difficulties that arise from the project work in studying are and proffer the lasting solutions to them.

1 .6 SIGNIFICANCE OF THE STUDY

This refers to the important of study of the people. This research will help people to know the effect of rising cost of building materials on development. It is also ‘a fair development alternative to expensive building materials, it provide government the opportunity of knowing which area to tackle. The rising cost of building materials so as to reduce the problem being faced by residential property development. It will also serve as reference materials to other researchers.

1.7 RESEARCH METHODOLOGY

1. The survey intends to use the methodology of identifying the factors

2. How to identify experts who could help in completing the survey.

3. The appropriate method of analyze the data in addition, certain factors were evaluated and analyzed to identify the key factors of cost increase in house and construction industry in Nigeria.

The graphic, social and other environmental factors to provide accurate and reliable information regarding the cost rise in Nigeria industry.

1.8 RESEARCH QUESTIONS

The following are research questions tray will guide the study.

1. What are the main factors that led to high cost of housing construction n the federal capital territory, Abuja?

2. What are the effects of the factors in housing construction industry?

1.9 SCOPE OF THE STUDY

The study will limit itself to the effect of rising cost building material on residential. Properties development in Abuja municipal area council, this is done in order to enhance adequate coverage of the study area.

1.10 LIMITATION OF THE STUDY

Some hindrance has been encountered in carrying out this research work such as;

1. Many construction firms. Consultant quality surveyor, estate valuers or firms and land lords were relevant to disclose relevant information or data.

2. Hostility of some building materials merchants or dealers to release information during market and surveyor and field intervals.

3. Financial and time constraints also constitute some of the limitation, but the research was able to over come them.

1.11 RESEARCH HYPOTHESIS

H_o: Rise in oil price, the increase in oil demand in the past 10 years nearly 50 percent increase, lead to the rapid increase in oil price

H_i: High demand for housing construction, the categories include high demand from (a) Nigeria citizens, government housing project and government public project.

H_o: Low housing supply, these categories include the increased annual demand for housing unit and the low supply of housing unit.

H_i: Speculative purchase of undeveloped lands, these categories includes corruption in the selling process of undeveloped land.

1.12 DEFINITION OF RELEVANT TERMS

Price: It refers to change cost and expensive or expenditure required in buying or maintenance price is the quality of payment or compensation given one party to another in return for goods or services.

Building: Building is a manmade structure with roof and walls standing more or less permanently in one place.

Materials: The substance or substance of which things are made of composed. Stone is a durable raw materials or anything that serves as a crude or raw material to be used or developed e.g. wood pule is the raw material.

REFERENCES

Aminu, A.A and Jagboro, G.O (2002). “The effect of construction delays on projects delivery in the Nigerian construction industry”

Isaidinso, E.I. (1988). “The needs and problems of the building industry in Nigeria a qualitative surveyor view”. Research Institute Seminar, Nigerian Building and Road Research Institute.

Fisk, E.R. (1997). “Construction project administration, 5th edition prentice Half, New Jersey.

AN ANALYSIS OF VARIATION ON RENTAL VALUE OF RESIDENTIAL PROPERTY IN NASARAWA TOWN

AN ANALYSIS OF VARIATION ON RENTAL VALUE OF RESIDENTIAL PROPERTY IN NASARAWA TOWN

ABSTRACT

This project work has said to be variation in rental value of residential properties among neighbourhoods in Nasarawa, Nasarawa State, Nigeria. The research employed the use of questionnaires as a method of data collection. A number of 175 questionnaires were administered out of which 100 were returned. The data were collected from the landlords, tenants and Estate agents of the selected properties in the neighbourhoods. The data collected were analyzed using tables. The findings indicated that amongst the selected neighbourhoods in Nasarawa, Tammah in terms of tenement has the highest rental value base on the fact collected, also one of the factors contributing to the variation in the rental value of residential properties was found to be infrastructure in the neighbourhood. It is therefore recommended that government should provide infrastructure in other neighbourhoods to attract rental value in other neighboorhoods.

CHAPTER ONE

INTRODUCTION

Shelter is a basic necessity in life. An individual can Satisfy this need by either occupying his own (owner’s occupier) property or renting another person property. In our traditional society the need for shelter is mainly met through the first alternative that is owner occupation. With the emergency of urban centers, the situation has changed. Many people are no longer about to own property because of the difficulty in the acquisition of land and the high cost of building construction. Therefore, they are left with the alternative of renting other people’s properties in order to satisfy their need for shelter. Consequently two classes of urban resident have emerged, the landlord and the tenant under this arrangement the tenant pays to the landlord a certain amount of money in consideration for his use of the landlord house. This amount is properly known as rent.

All over the world, renting offers a more affordable way for many people to gain access to accommodation. The provision of adequate housing is a very integral part of the needs of every society and has great value for individual, families, communities and society at large (Opoku and Abdul-muhmin, 2009). Revenue from rent serves as the main source of income for many local government, real estate developer and home owners. The attractive income from rent have led to the conversion of various structures into apartment for rent.

In urban area due to location advantage (for examples prime location) which some properties offers above others for residential uses, rent tend to vary on account of the type of use which a property can offer.

1.1 STATEMENT OF PROBLEM

Location of economic property has been a difficult concept to understand. Although the primary objective of residential properties is for habitation, shelter and comfort, the demand for land is a reflection of the profitability or utility derivable from it use. The greater the benefit to be obtained from a particular use, the higher the rent that the user will be willing to pay for it.

There appear to be wide ranging differences in the levels of rent passing on residential property in Nasarawa.

This research is seeking to find out what are the causes of spatial variation on rental value of residential property in Nasarawa.

1.2 AIM AND OBJECTIVES

AIM

The aim of this research is to analyze factors that influence variation of rental value on residential property.

OBJECTIVES

To determine the types of residential property in Nasarawa town.
To assess spatial variation on rental value of residential property in Nasarawa.
To examine the factors that influence spatial variation in rental value of residential property.

1.3 RESEARCH QUESTIONS

1. What are the types of residential property in Nasarawa town?

2. What is the assessment of spatial variation in rental value of residential property Nasarawa?

3. What are the factors influencing the variation on rental value?

1.4 SIGNIFICANCE OF THE STUDY

This research will help tenant to understand the reason why rent vary or defer.

It will enable the estate developers to understand how occupier thinks, also thing they consider before acquiring property for certain use.

This can also serve as a reference material for future use by student and researchers.

1.5 SCOPE AND LIMITATIONS OF THE STUDY

SCOPE

The research work is restricted to selected property such as (residential property) comprising block of flat and tenement in Nasarawa town which limited to some selected neighbourhood such as Tammah, Shagari, Oversea and Millionaire’s quarter.

LIMITATION OF THE STUDY

This study was greatly affected by certain constrain which became unavoidably within the time limit for which the research was conducted.

Time constrains: The research was constrained by time limit. This posed a trait to the wide coverage intended in the cause of this study.
Cost factor: It is unusually that the prevailing economic conditions posed to a great extent, the problem of procuring the whole material information needed and other relevant statistical data.

1.6 HISTORICAL BACKGROUND OF THE STUDY AREA

Nasarawa town was brought up from small settlement into a prospective town of about 49,760 inhabitants. The history of Nasarawa shows that Malam Markama Dogo was the person that conquered Nasarawa town, so also the history of Nasarawa would not be complete without mentioning Keffi because the two are usually considered as one.

Tammah was a small village having a population of about 600 people and Gbaggi are the founder of Tammah and Egon people came there as a result of farming and few Bassa were also there with Gbaggi people before the arriver of Egon so luckily as the Federal Polytechnic was established in Nasarawa.

GEOGRAPHICAL LOCATION

Nasarawa town which is geographically located approximately between latitude of 646 and 739 and longitude 16N 2W. The town consist of little plan using evaluation of 600fit in the southern to above 400fit at the North East.

The town is located at 40km south Keffi town along Lokoja road. The ethnic group that could be found in Nasarawa town are Hausa, Gbaggi, Geda, Basa, Gwandare and host of others.

OCCUPATION

The geographical location of Nasarawa with the Savannah belt and vegetation favours agricultural production, as one of the economic activities of the town. The fertility of the soil and climatic condition sustain production of seed, vegetable and root crops. These agricultural crops include tomatoes, spinach, cassava, maize, yam, millet, garden egg, beans, geanicorn etc.

EDUCATION

Nasarawa town may be referred to as a home of learning, comprising numerous primary and secondary schools amongst which are Government science school, Foundation. It also consist of tertiary institution, i.e. the Federal Polytechnic Nasarawa.

RELIGION

The town consists of two main religion set, namely; Christians consisting 47% and Muslim consisting 50% and the remaining 3% consists the traditional worshipers.

Tuesday 28 February 2023

EVALUATION OF LAND USE AND DEVELOPMENT CONTROL IN NIGERIA

(A case study of Area Council Bwari, Abuja)

ABSTRACT

The aim of this project is to evaluate land development control. In other words, the important of land to mankind and its various uses, which are residential, commercial, recreational, industrial, education, communication land etc. this calls for the control of various development purpose. The government promulgated various laws to regulate the land use planning, building by law and zoning regulation for an important research. Several forms of data collection methods and analysis are bound to be used therefore, this project work have comprehensively three sections which can be ascertain in this project work.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

In ordinary language, the term land refers to the physical surface of the earth or in everyday use in the part of the earth’s terrain on which man plant and animals live on. Land in its totality is more than the earth’s outer surface that gives sustenance to plants and animals.

Conceptually land has various meaning, the term “land” suggest different things to different people depending upon their outlook and their interest at that moment. According to Balowa (1985) “land” could apply a nation an ordinary person or political division of the earth surface. Legal concept of land as in section 205 of law of property act 1925 define it to include, “land to tenure and mine and minerals whether or not held apart from the building, other incorporated here determent benefit right, privilege in or over or deprived from land”.

To this end, town and cities are precious possession, of mankind. A town or city does not know its own grow to become efficient, but like a child, its master plan or comprehensive development plant to ensure the orderly grow and land down guide line for development of our cities, town and villages cannot be over logged (the master plan serves as a frame work and provide guide lines for development or developing a city or town in a planned and orderly) it is therefore, the mean to achieve the goals and aspiration of the community at large. The need for evaluation of land use and development of land development control is very vital or important. In other to ensure that real estate developers and owners of landed property use their land and building in conformity with approval scheme as contained in the master plan of the town.

Thus, the government enforces law and regulations guiding land use and development control in order to regulate the growth of towns in a planned and orderly manner, for the purpose of functional efficient and visually attractive physical environment.

1.1 STATEMENT OF PROBLEM

Despite the effect of the planning development in Federal Capital development Authority (FCDA) to ensure and efficient control use in Bwari Satellite town, they keep on deteriorating.

This is compounded by:

Land use
Inadequate social amenities facilities.
Poor housing quality.
Poor accessibility of houses.
Sanitation.
Congestion and
Lack/inadequate control of development.

It is in view of these noticeable problems that promoted this study so as to uncivil, to constrains and proffer possible and useful suggestions.

1.2 AIM AND OBJECTIVES

To evaluate the existing method of controlling development and land use in Bwari Abuja with view to ascertain problems associated with the method.

OBJECTIVE

Review literature on control land use and development control.
Examine method adopted controlling.
Examine the part term of development and land use in the study area.
Identify problem militating against effective control of land use and development of Bwari.
Suggest possible solution to the identified problem.

1.3 SCOPE AND LIMITATION

This project concerns the evaluation of land use and development control at Bwari, Abuja. The researcher consider it fit and efficient to narrow the study to only Bwari satellite town in the Federal Capital Territory Abuja to allow a defiled and through activities and provide for these activities would eventually be a higher room for the emergency of a city .

The city and its environs is expected to grow gradually to pa balanced community within the frame work of other world communities. To realize such dream there must be control and monitoring overall development and component part that are to take place.

To this end the expectation are Nigeria and indeed that of the world of capital city that will be developed to standards almost equal to those of development cities such as England, Japan, United State of America, Portland, Brasilia in Brazil, in other words Abuja as a new to has a lot of opportunities for planners, estate surveyor land space designer etc. I exhibit their require to lapse as to avoid over concentration of people and economic/social activities.

Constant control and monitoring of development is essential for the city the use of land can afford the public health, safety and welfare. The project word therefore does not cover other satellite town within the FCT areas TES not easy to gather the data use for reluctantly is always there when it comes to give vital information that will be useful to the research work. There was also inadequate and time factor.

1.4 METHODOLOGY

These are obtained through administering of questionnaires. Formal and informal interview and discussion with some selected people who are not able to fill the questionnaire.

QUESTIONNAIRE

The question was designed to assist in the writing or project. The questions were asked to get individual contribution from the development control, land use control, engineering department operation (demolition) logistic (tiles) all in the development control and settlement division zone 6 Abuja among other surveyors, architect and builders in Bwari Area Council of Abuja tenants in the study area.

PERSONAL DISCUSSION AND INTERVIEWS

This involved oral interview with some staff of development control who refused to receive the questionnaire, estate surveyor and valuers, tenants and also the private and public developers within the Bwari council of Abuja on land development control in Bwari, their response was remarkable.

PAMPHLET/JOURNAL/TEXT BOOK

Data were collected through pamphlet, journals and past project relating to the information needed for this project these include published and unpublished books which are relevant to the topic to enhance a good presentation of the project.

POPULATION SAMPLE

One hundred questionnaire were printed consisting of the set. Sets contain 30 question directed to the building industry (Values 20 question to the Bwari area council, 30 were allocated to set c which to development control zone 6 Abuja under the umbrella of (FCDA) Abuja. For the purpose of analyzing data, table would be used to enhance better understanding of the collection also description method presenting and analyzing the data too.

Thursday 19 January 2023

THE APPLICATION OF COMPUTER IN REAL ESTATE APPRAISAL

ABSTRACT

The use of computer as an electronic device have been embraced in all field of human endeavour ranging from banking, engineering marketing, construction with real estate appraisal inclusive. This paper is centered on the application of computer in real estate appraisal. The computer is increasingly used by real estate appraiser for various purposes. The word processing software permits the appraiser to write up the individual property appraisal report. The same or different software permits the appraisal the appraiser to fill in appraisal forms with the requirement information that is found in the appraiser’s files and acquired from other sources. Computer spreadsheet software allows the appraiser to calculate multiple regression coefficients of correlation after data from the appraisers’ files is entered into the software. Blocks of residential single family are inserted into the program to see what housing characteristics have the most effect on the resulting appraised value. Property tax appraisers with a mass appraisal to accomplished actively use computer multiple regression models. At least part of the appraiser’s wealth of information that comes from a daily inflow of data from various sources may be filed in the computer database. The computer has become a necessity rather than a luxury or an occasionally used piece of office equipment.

INTRODUCTION

The typical professional appraisal of a generation ago would be flabbergasted by the inroads made by electronic media in the modern appraisal office. Even in the past ten years, the manner in which appraisal data are accumulated and analyzed and the way that the appraiser’s estimate of value is transmitted to the client have undergone a transformation that is still ongoing. With the increasing availability and range of use of small, easily programmed office computer, the appraisers must be acquainted with a variety of appraisal-based computer applications. A few of these are highlighted below, with suggestions for the equipment necessary to keep pace with the developing electronic products.

THE COMPUTER: Even the smallest real estate or appraisal office can now take advantage of the computer’s storage and problem-solving capabilities. What kind of computer is best for the appraisal office? That depends on the nature of the appraisal work, the complexity of the assignments the appraisal will undertake, and the size of the appraiser’s budget.

It is best to tackle the question of what computer to buy by working backward; that is, the appraiser should begin by considering the requirements of the software that will be used in everyday practice. The appraiser may have already decided to buy one of the major appraisal software packages, which could cover everything from case tracking, including data collection and report preparation, to management of the appraisal office, including bill and staffing. Should the computer be “IBM-compatible” (One that meets the operating specifications designed for IBM, Inc., products, referred to as PCs, or personal computer). Macintosh computers are often favoured by design and publishing firms. There is excellent mac-based software available for the mot appraisal functions – for example, word processing, spreadsheets, databases, office management, communications, graphics, photo editing. Etc. There also are very sophisticated Mac programs for all the standard forms used for residential and general appraisaing; however, there are more choices of software vendors for the PC. The beginning appraiser should follow the recommendations of the managing appraiser who will be reviewing his or her work to ensure compatibility. Generally the new appraiser can be included under the managing appraisers’ current software license for a relatively small fee.

THE APPLICATION OF COMPUTER IN REAL ESTATE APPRAISAL

Most likely, the appraiser will need a modern, a computer – based telephone, to gain access to the wide range of information available on the internet. In addition, the appraiser may want to establish an electronic link to one or more lenders, which would require a computer with sufficient memory in addition to a modern capable of making such connections efficiently. Of course, the minimum capability required by today’s computer applications only establishes the baseline requirement for the appraisal office. The difficulty is in deciding how far beyong the minimum the appraiser should go.

Some state appraiser licensing offices, as well as the major appraiser societies, offer introductory classes or seminars in computer technology and application for the real estate appraisal. Because of the rapid development of more powerful computers, as well as new software to take advantage of the computer’s growing data-handling capabilities, attendance at one of these classes should be useful for the experienced computer users and the neophyte. The computer hardware and software purchase decisions needn’t be made in a vacuum.

By seeking experts advice, and dealing with one of the major computer manufacturers, even the beginner can take most of the trauma out of the purchase decision. With the right information, the computer buyer should be able to invest in a system that will be adequate for three years of services. That means that the system should not only meet the appraisers’ immediate needs but be expandable to cover reasonably expected additions of equipment and software.

The most important features of the computer purchase will not be apparent until after a problem arises. Who is responsible for fixing the computer when something goes wrong, and where will the repairs be made? IF the computer system is purchase with an intended period of use of three years, the most desirable warranty or services contract will be one that provides for three years of on-site maintenance, to be performed within a stated time of the request for service. Such a warranty may require an additional fee, but will help reduce a major source of stress for the computer owner. After all, when an appraiser is relying on a functioning computer system to produce and transmit appraisals, a non functioning machine means that the appraiser is virtually out of business.

What price can the appraiser expect to pay for a system capable of handling all, of the operations mentioned above? That depends on many things: the systems motherboard, the command system, which determines how fast the system can operate; RAM, or random access memory, which determines how many operations the system can perform at the same time; hard drive memory, or data storage capacity; a monitor of adequate size and image definition; and the specifications of the modem, DVD/CD drive, and other peripherals. The good news is that prices continue to fail. Expectations are that this year’s system will have much greater speed and capacity and yet cost less than last year’s system. A basic “office suite” of software applications, including word-processing, spreadsheet, graphics, and mailing List capability, is likely to be included in the price of the basic system. The cost of appraisal-based software applications will depend on the appraiser’s needs and on how much time the appraiser is willing to spend searching for the best price available.

THE PRINTER

Today’s appraisal software not only allows a user to complete any of the numerous standard appraisal forms, it provides the form itself. The key to making a professional presentation is the quality of the printer used to print out the completed term. Given the dramatic drop in prices of laser printer, there is no substitute for a laser printer capable of producing six or more black-and-white pages per minute, at a resolution of 600 by 600 dpi (dots per inch). The price for such a machine used to be around S1.000, but they are now available for:$500 and up. A useful second printer is a color ink-jet machine that can produce more attractive renderings of photographs. It has become possible to purchase one for well under $500.

THE BACKUP SYSTEM

As with any serious computer use, the appraiser should ensure that no data are lost in the event of a power failure or mechanical malfunction. The backup system properly consists of two components: (1) a battery (not just a power surge protector) to which the computer is connected to provide a secondary power supply – in essence, a cushion of time during which the computer can be shut down in the event of a power failure without loss of data and (2) a second computer memory (hard drive or cartridge), installed inside or outside the machine, that can b used (and refreshed periodically) to keep a copy of everything that is stored on the computer. It should be possible to buy both components for a combined, price of less than N75,000. Note: The backup system disk or cartridge should not be left in the machine or it will suffer the same fate as the main system in the event of power toss or malfunction. A final word of warning: During an electrical storm, it may be prudent to shut down one’s computer completely to avoid risk of data Loss. There is no backup system yet invented that will survive a direct hit, or even a near- miss, from a bolt of lightning.

THE INTERNET

From its beginnings 40 years ago as a telephone-based method of computer information exchange for the military, what we now term the Internet has emerged as a major method of wor1dwde communication.

Efficient access to the resources available via the Internet requires a modern capable of transmitting 28,800 bps (bits per second) or better and subscription with a service provider that provides the initial access link. Once one is online (has gained access to the Internet), one can reach government, educational, and private sources of information around the globe. One can also be a recipient of communications in the form of electronic mail, referred to as e-mail.

Current predictions are that use of the Internet will only increase in coming years. Its use for appraisers is growing exponentially every year, as more and more data sources, including multiple listing services, provide online access to their databases. The number of government offices allowing access to public records is also growing. Information on national, regional, and local economic, employment, and other trends is readily available. There are a growing number of services specializing in data on various types of commercial and residential properties.

The cost of access to the Internet is surprisingly modest. Some Internet providers (such as America Online) provide their subscribers with access to numerous newspapers, magazines chat availability shopping, and other services at a base monthly rate for a specified number of hours of access to the service, with an hourly rate for each additional hour. Unlimited Service is available for a higher monthly fee, Other service providers provide access to the Internet, but no additional programming.

Geographic Information Systems (GIS)

Satellite based mapping systems have been in use for as long as satellites have orbited the earth. From their initial military and weather technology based applications, mapping systems based on Latitude and longitude are now entering the commercial market place. The utility of the maps. Once available online from the United States Geological Survey (USGS), has been greatly expanded. Commercial services now provide (via computer disk or the Internet) reference maps that provide overlays of national, regional, and local data and are capable of incorporating the appraiser’s own data The cost of such maps will depend on the source and method of transmission.

Electronic data interchange (EDI).

The present trend toward consolidation of financial institutions has resulted in fewer users of appraisal services, particularly in the single-family residential mortgage loan marketplace. The lenders that now dominate the field arc moving increasingly toward the most direct method of communication of property valuation – electronic data interchange, or EDI. An electronic link between the lender and the appraiser via modem allows a computer in the appraiser’s office to transmit the required information almost instantaneously. Using EDI, the appraiser no longer needs to print hard copies of the report that includes the basis for the estimate of value. Now the appraiser enters the necessary information into the computer and then uses the computer’s modem to connect to the lender’s computer and relay all of the required information with the speed of a telephone call. The computer software that allows for such efficient transmittals must be customized to meet the lender’s requirement, but the lender may provide the software at little or no cost to the appraiser.

THE CAMERA

No modern appraisal office is complete without a digital camera that can be used to make and transmit images without the need for film or printed copy. The digital camera may be no larger than the typical 35-milimeter camera used in the past. It will have a view finder, lens, and built-in flash. Within the camera body, however, is a miniature version of a computer, capable of receiving images, recording them in digitized (computer-readable) format on a memory chip, and. releasing them to a printer and / or another memory device, such as a computer hard drive or disk. Once the images have been downloaded – that is, recorded and/or stored elsewhere – they can be erased from the camera’s memory which can then be used to record new images.

The digital camera uses no film and requires no professional processing. The number of images the camera is capable of recording and storing depend:; on the size (the amount of memory) of the chip inside. With a digital camera, the appraiser can import photographic-quality images directly to an appraisal report. If the report itself is transmitted electronically, the photos are incorporated within the report, to be viewed on the recipient’s computer monitor.

A digital camera with enough memory for hundreds of images (depending on the degree of resolution desired, with higher-resolution photos requiring more memory per image).

USE OF TECHNOLOGY:

In recent years there have been many references to use of “artificial intelligence’ in the appraisal process. The use of appropriate resources, including computers, can help an appraiser function more efficiently and more accurately, but these tools serve only as aids to the appraiser. There never will be a substitute for the skilled and informed judgement of a professional appraiser.

CONCLUSION AND RECOMMENDATION

The skills required of the professional appraiser touch on most areas of real estate practice. The best-qualified appraiser will have some at the abilities of the economist, city planner, surveyor, local estate developer, builder, and broker. Familiarity with appraisal-based computer applications is rapidly becoming a practical necessity however impartiality objectivity, knowledge of appraising fundamentals, and the quality of judgment that comes only with experience are the professional appraiser’s chief credentials.

The application of computer in real estate appraisal have contributed immensely to the efficiency and productivity of real estate appraiser and the estate survey and valuation profession. Therefore it pertinent for all valuers and estate firm to have access to this modern tools “Computer” and harness its enormous benefits so as to increase professionalism and productivity.

REFERENCES

Adair, Alastair, Mary Lou Downi (1996) European Valuation Practice. Theory and Technique. London. E & FN Spon, publisher.

Baum etal (1995) Property Investment Appraisal. 2^nd edition, London: Routledge publishers.