THE EFFECT OF LOCATION ON PROPERTY VALUE
1.0 INTRODUCTION AND BACKGROUND
1.1 GENERAL INTRODUCTION
A well located product can often survive economically even if development is poorly planned and managed. A project that is not well located may fall even though it has the best planning and management and even design, Cassidy (2005). Today, many investors in real estate have no regret for taking a wise decision in site section while many still regret choice of bad location.
The relative location of a parcel of land is what determines it value. Thus, the relative location made is the combination of the spatial proximity or a plot of land to other parcel of land and linkages between them (Harsh 2000). In the course of studying the effect of location on property value accessibility cannot be isolated.
Accessibility in this word considers the time and convenience of getting to a place. This refers to the nature of the road network i.e. rough, smooth undulating to other use wise. All these inquires have been observed in order to make alteration where necessary and avoid future occurrence, hence considering the work in respect of the effect of location of tertiary institution on property value.
1.2 STATEMENT OF PROBLEM
This project critically examines or gives an understanding of the effect of location on property value. These projects also gives an understanding on how to choose or to locate a suitable site for a property and adequately to know the present property value so as to have a fruitful business and allows the people in the institution have a befitting and credible knowledge and accommodation
Some estate surveyor find it difficult to know the value of a property in some selected area. So in these cases, some research topics have been treated by scholars to the effect of location on property value. These dissertation as therefore aimed at bringing to limelight the fact that property value is an important aspect of utilizing a property through which enormous problem of valuation could be tracked if necessary attention is given appropriately.
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim of this study is to analyse the effect of location of tertiary institution on property value.
The objectives of the study are: -
i) To examine the effect of location of tertiary institution on property value
ii) To determine the value of development in the study area
iii) To assess different types of property within the study area
iv) To determine the level of property value before and after
v) To suggest and recommend possible solution to the effect caused by location on property value
1.4 SCOPE OF THE STUDY
This project topic deals with the effect of location on property value but the scope of the study shall be restricted to a tertiary institution which is Al-hikmah University, Ilorin and its surroundings.
1.5 LIMITATION OF THE STUDY
Though, it is the intention of this research to present a comprehensive study on this subject matter, nevertheless, the following constraints to limit this laudable intension
i. Un-co-operative attitude of the respondent in granting interviews and filling of questionnaires
ii. Insufficient textbooks in relation to the work for the purpose of literature review
iii. Financial constraint which directly and indirectly affect the information and data used
iv. Short time required in producing and completing the dissertation notwithstanding the above short comings, everything’s possible to ensure a comprehensive dissertation was undertaken.
Geri alimi Roundabout
Case study Al-hikmah University
RealGold Filling Station
MRS. Filling Station
Air force Barrack
IQRA primary Schl.
1.6 STUDY AREA
Ilorin is the present day capital of Kwara state in the north central region of the federal Republic of Nigeria. It is a pre-dominantly Islamic city with people of diverse culture who have come together to live as one in peace and harmony. The entire Ilorin community comprises of five local government area namely- Ilorin west, Ilorin south, Ilorin East, Asa and Moro Local Governments. These local government areas are all under the entity known as Ilorin Emirate.
Ilorin community was discovered in the 18th century by the Duo of Afonja-Are-Onakakanko, a Yoruba warlord and sheik Alimi and Islamic scholars.
These heroes of Ilorin arrived Ilorin at different times and in different circumstances. However, after so many internal and external wars which further polarized the camp of both men and made them suspicious of each other, and eventual confrontation ensured and Alimi defeated Afonja. Sheik Alimi extended a hand of friendship to other hanlets nearby and formed a larger community within a common belief and destiny, which he headed, that community is now known as a testimony of the unity of the people.
Ilorin is one of the largest cities in Nigeria and is the capital of Kwara state. As of year 2009, it had a population of 847,882 people. 18th January 2013, the population of Ilorin, Nigeria increases to 958,693 according to the Geonjaves geographical database, Ilorin. It enjoys an undulating relief interspersed with scattered hills
1.5.1 HISTORICAL BACKGROUND OF THE STUDY AREA
Al-hikmah university, Ilorin Nigeria was established in 2005 by the Abdul-Raheem Oladimeji Islamic Foundation (AROIF) Nigeria, the university came into existence via the granting of operating licenses to run as a conventional private university by the federal government of Nigeria; license no 010 on the 7th of January 2005. It commenced academic activities during the 2005/2006 academic session with 70 students spread across the three (3) take off colleges: humanities, management sciences and natural sciences.
By the beginning of the 2012/2013 academic session, Al-hikmah University could showcase four (4) colleges with the addition of college of education, and a student population of about three thousand (3000). Al-hikmah University stands out among Nigeria University with a well-articulated mission of promoting both academic and moral excellence for the good of Nigeria nation in particular and for furthering the course of humanity in general. The overall goal of the university is summed up in its motto “learning for wisdom and morality”
1.6 DEFINITION OF TERMS
There are some relevant terms used in this topic which includes: -
i) Property: a property can be defined as any physical or tangible entity which is owned by a person or a group of people or an entity like a corporation. Depending on the nature of the property a owner of a given property has the right to consume, sell, rent, mortgage, transfer, exchange or destroy it. “McKay, John P (2004)” uses of property
ii) Institution: an institution can be defined as an establishment, foundation or organization created to pursue a particular type if endeavor such as banking by a financial institution (G. M. Hodgson (2006)
iii) House: can be defined as a place of residence or refuge, when it refers to a building, it is usually a place in which an individual or a family can live and store personal property such as single family “detached home” or an apartment (Stanchack, John (2000), Civil war, geographical handbook.
iv) Location: the term location and place in geographical are used to notice and or identify a point of an area on the earth’s surface or elsewhere. The term “Location” generally implies a higher degree of certainly then “place” which often has an ambiguous boundary relying more an human and social attributes of place identify and sense of place than and geometry. (Gersmeh, P. (2008) “Introduction to land property”
v) Value: the word value as been defined by different scholar, justice bodies was quoted to have said that value is a word of many meanings. Banbright, (1937) said that value is been to define the importance of business and economic undertakings. It implied the capacity of a commodity to satisfy want, it can also be related to political, social and religious issues
2.0 LITERATURE REVIEW
2.1 HISTORICAL BACKGROUND OF PROPERTY VALUE
The first edition of property valuation was published, some thirty years ago not too long after one of these market corrections that despite their inevitability, seen always to catch a new generation of investors and developers by surprise, indeed, notice that as each new edition has been published there has been plenty of evidence of the frequency of these ups and downs.
Now with the publication of this fifth edition, after thirty years and the evitable transition from the vitality of youth to the firing of old age. It seems fitting that the authorship of property value should now move into entirely new editions (Greeno K. (1979) “Real estate Appraisal Handbook”
Real estate appraisal “valuation” is very complicated, expensive and time consuming activities in carrying out this activities. The implementation of a comprehensive due diligence process to determine the feasibility of any proposed project is essential (Thomas T. 2006) “Property valuation publishers”. Although real property issues vary from to province land.
2.2 GENERAL PRINCIPLE OR PROPERTY VALUE
Property valuation principle comprises of significant component of total Australian economic output in making the kind of appraisal called valuation. The subject property should first be classified as investment property, marketable non-investment property or services property. An investment property can be valued only by the investment analysis method, a marketable non-investment property can be valued only by the sales analysis method, and a services and a service property. The value usually sought is the property’s market value. Appraisal are needed because compared to, say corporate stocks, real estate transactions occur very infrequently, not only that, but every property is different from the next, and a factor that doesn’t affect asset like corporate stocks (Henry, A. Babcock (June 1975)
Furthermore, all properties differ from each other in their location, which is important factor in their value. So a centralized auction setting can’t exist for the trading of property assets such as exists to trade corporate stock (i.e. a stock market/exchange) usually however, most countries or regions require that appraisals be done by a licensed or certified appraisal (in many countries known as a property valuer or land valuer and in British as a “valuation surveyor”.
2.3 PROBLEM ASSOCIATED WITH PROPERTY VALUE
One of the major problems of property valuation is finance. The focus of this study is to examine the problems that are associated with the real property valuation finance in Nigeria. The study attempt to explore the various sources of finance that are available for real estate property with a view to determining. The problem that hamper effective flow of funds to achieve this, some estate surveyor and valuers that engage in real property valuation recommends among others the Nigerian government should try to solve it economics problems such as inflation in order to minimize the problem that hinder the financing on property valuation..