CHAPTER 1: Introduction
Residential Property consists of those properties which are zoned for single-family homes, multi-family apartments, townhouses, condominiums, and others. It is a type of leased property, containing either a single family or multifamily structure, that is available for occupation for non-business purposes.Location is among the main determinants of residential property value. It has been realized that location could either be tangible or intangible in nature. Tangible location factors include accessibility, transportation closeness to central business districts, building codes, household preference, demand, supply, population increase, closeness to place of work, community facilities, utilities and services, components or elements that form part of a building structure, zoning regulation, building codes, subdivision regulations, environmental protection laws, waste dumpsites, planning restrictions and so on. On the other hand, intangible location factors are those attributes of location that are invisible in nature. They include race, crime, safety, religious inclination, cultural identity, native inclination, security, ethnic background, indigeneship, apartheid, violent free areas, socio-economic background, and violent prone areas and so on.
1.1 Background of the Study
The considerable research devoted to the determination of real estate values, shows that many have concentrated on the effect of location on property value. Location has long and frequently been considered a primary determinant of real estate value. An early study in 1926 addresses the role that location plays in determining land use and rents (Ridker and Henning, 1967). Location has since been examined from various aspects. While traditional location theory has focused on transportation costs rather than specific real estate features, often the value of physical attributes of real estate is obscured by values that tenants or owners attach to location and to direct property amenities. Within the complex bundle of services and amenities included in real estate transactions, many researches have shown neighborhood environment to be a key determinant in the value of the real estate package (Brigham, 1965; Kain and Quigley, 1970).
A critical look at the aforementioned models and postulations reveal that residential property value is determined by many factors. From the aforementioned, it could be observed that all these theories have some discrepancies as only few of them look at some intangible location attributes as indicators of land and landed property value. In a nut shell, the research has critically reviewed and evaluated various types of residential property value indicators from a review of available literatures. The previous theories on residential property value are tangible in nature and could not be used in every setting. It is therefore against this background that the research examines intangible location attributes as factors that determine and influence the values of residential properties in the study area. Excerpt (ALIYU AHMAD ALIYU 2012 IMPACT OF INTANGIBLE LOCATION ATTRIBUTES ON RESIDENTIAL PROPERTY VALUE IN NIGERIA PG1-5)
Therefore the research seek to appraise the impact of location on residential property
1.2 STATEMENT OF PROBLEM
The existing wealth of knowledge reveals that tangible location factors are the prime mover in determining the worth of land and landed property (Garrod, and Willis, 1994 and Ana’s, 2002). This is of course true if someone looks at it critically and analyse things in an advance manner. However the value of landed property could also be determined by other intangible means. Sales and rental values of landed property could be arrived at by looking at many indicators like accessibility, transportation, nearness to school, place of work, place of worship, market, hospital, To others, toxic or hazardous waste site is a function of worth of a real estate value . It could also be determined by the components and elements that form part of the building like, ceiling, roof, door, decorations, finishes, window, external and partition walls and so on . Race also plays a major role in determining the value of land and landed property. . Furthermore, the value or worth of a real estate could be arrived at by looking at the public utilities, facilities and services that go a long way in providing a conducive atmosphere and convenient environment for healthy and comfort living Other factors that are normally being considered when determining the worth of land and landed property include whether the area is designated as low, medium or high density areas. Poor people are mostly found in the high density areas like the suburbs, squalid areas and town centers. While middle class individuals are often found in the medium density areas like the government workers. The rich men and bourgeoisies could be sighted in the low density areas like government reserve areas. These categories of people buy or rent residential accommodation according to their earnings in their respective places of abode .Consequently it is imperative to stress the fact that residential property value is a function of many indicators as against the proposition of a specific factor as was expressed by early traditional theories. Therefore the problem confronting this research is to determine the impact of location on residential property
1.3 OBJECTIVE OF THE STUDY
1 To determine the nature of residential property
2 To determine the nature of location factors which influence the choice and value of residential property?
2 To determine the impact of location factors on the choice and value of residential property.
1.4 RESEARCH QUESTIONS
1 What is the nature of residential property?
2 What is the nature of location factors which influence the value and choice of residential property?
3 What is the impact of location factors on the value and choice of residential property?
1,5 SINIFICANCE OF THE STUDY
The study shall provide a study on the nature of residential property
The study shall proffer a detail appraisal of the divergent indicators which constitute the nature of location factor
The study shall be of immense value to property managers
It shall also serve as a veritable source of information on issues of location, value and choice of residential property
1.6 STATEMENT OF HYPOTHESIS
1 Ho The value of residential property is low
Hi The value of residential property is high
2 Ho The demand of residential property is low
Hi The demand of residential property is high
3 Ho The impact of location on residential property is low
Hi The impact of location on residential property is high
1.7 SCOPE OF THE STUDY
The study proffers an appraisal of the impact of location on residential property
DEFINTION OF TERMS
RESIDENTIAL PROPERTY DEFINED
Residential Property which is zoned for single-family homes, multi-family apartments, townhouses, condominiums, and others
A type of leased property, containing either a single family or multifamily structure, that is available for occupation for non-business purposes.
LOCATION DEFINED
Location is among the main determinants of residential property value. It has been realized that location could either be tangible or intangible in nature. Tangible location factors include accessibility, transportation closeness to central business districts, building codes, household preference, demand, supply, population increase, closeness to place of work, community facilities, utilities and services, components or elements that form part of a building structure, zoning regulation, building codes, subdivision regulations, environmental protection laws, waste dumpsites, planning restrictions and so on.
On the other hand, intangible location factors are those attributes of location that are invisible in nature. They include race, crime, safety, religious inclination, cultural identity, native inclination, security, ethnic background, indigeneship, apartheid, violent free areas, socio-economic background, and violent prone areas and so on.
PRICE DEFINED
Price is the product of the interaction of supply and demand. Given any level of demand and any given supply, price will adjust to produce an equilibrium point at which the amount in supply matches the quantum of demand. Based on the above assertion, if the demand for a land and landed property falls and supply remains constant, price will also fall until it triggers people for whom price was previously a barrier to enter the market. Conversely, if the demand for land and landed property rises then price will rise too
