CHAPTER 1-INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The increase in the development of residential property has brought a lot of effect in the property market as well as on the economy at large. A residential property is a type of leased property, containing either a single family or multifamily structure that is available for occupation for non-business purposes. Residential property means improved real property used or occupied, or intended to be used or occupied, for residential purposes. Residential property is real estate that has been developed or zoned for living, such as single family houses, apartments, or mobile home parks. Any property that is available for occupation for a non-business purpose may be a residential property. This can include: Condominiums: privately owned units within larger buildings or communities, similar to the structure of apartment buildings; Townhomes: units that are usually larger than condos but still share walls with one or two other buildings; Cooperatives: units within one building where everyone living in the building owns the building together; Single-family houses: usually built on a single lot without having to share space with other dwellings.; Multi-family houses: usually range in size from two to four units, such as a duplex or a four-plex, but anything larger than four units is considered commercial property. Note that apartments are only residential property if they have fewer than five units. Additionally, locations like hotels, campgrounds, and other temporary living places are not included in the definition of residential property. These types of property are better categorized as commercial real estate. Both residential and commercial properties are governed by zoning laws. Residential zoning laws may limit the types and numbers of homes that can be built or placed in certain areas. Residential zoning laws may also regulate things such as noise in the area, types of animals allowed at residences, and whether you can run a business out of your home. Commercial real estate is business-focused, meaning that the owner of the property uses the property for a specific business objective. The owner expects to make a certain return on the investment. Residential property is for non-business use, most often to provide a home for individuals and families to live in. Most people take out a mortgage in order to purchase property. However, residential and commercial mortgages have significant differences. In order to take out a residential mortgage, the mortgage usually cannot exceed 45% of your gross income. However, for commercial loans, the lender may consider the business’s ability to make money in determining how much the borrower can borrow. Residential loans have negotiable down payments, whereas commercial loans normally require at least a 20% down payment. Terms for residential loans are also usually longer, between 30 to 50 years, whereas commercial loans tend to be around 10 years. Finally, residential loans do not usually charge penalties for paying off the loan early, whereas commercial loans do. The study focuses on growth in rate of residential property development causes and effect.
1.2 STATEMENT OF THE PROBLEM
The Nigerian Institution of Estate Surveyors and Valuers (NIESV) observed sharply the falling level of Demand in residential property in most Nigerian cities due to residential property growth. It also takes longer time to conclude transactions, while in some cases, there are renegotiations on rents. While the impact of the economic recession has greatly affected residential property business in many cities in Nigeria. The problem confronting the study is to appraise the growth in rate of residential property development causes and effect.
1.3 OBJECTIVES OF THE STUDY
The fundamental objective of the study is to appraise the growth in rate of residential property development causes and effect in auchi and aviele. The specific objectives of the study include:
i. To determine the growth in rate of residential property development.
ii. To determine the causes of growth in rate of residential property.
iii. To determine the effect of growth in rate of residential property development.
1.4 RESEARCH QUESTIONS
i. What is the growth in rate of residential property development?
ii. What are the causes of growth in rate of residential property in auchi and aviele?
iii. What is the effect of growth in rate of residential property development in auchi and aviele?
1.5 RESEARCH HYPOTHESIS
Ho1: There is no significant effect of the growth in the rate of residential property development in Auchi and Aviele.
1.6 SIGNIFICANCE OF THE STUDY
The study intends to provide valuable information concerning the growth in rate of residential property development causes and effect in auchi and aviele.
1.7 SCOPE OF THE STUDY
The study focuses on the appraisal of the growth in rate of residential property development causes and effect in auchi and aviele.
1.8 LIMITATION OF THE STUDY
The research was confronted with logistics and geographical constraint.
1.9 DEFINITION OF TERMS
RESIDENTIAL PROPERTY DEFINED
A residential property is a type of leased property, containing either a single family or multifamily structure that is available for occupation for non-business purposes. Residential property means improved real property used or occupied, or intended to be used or occupied, for residential purposes. Residential property is real estate that has been developed or zoned for living, such as single family houses, apartments, or mobile home parks. Any property that is available for occupation for a non-business purpose may be a residential property.
ENTERPRISE DEFINED
This is referred to as an organization or a business. It is also referred to as a project, Business plan or Business activities
INNOVATION DEFINED
Innovation is the discovery of a new thing or business. It can also refer to something new or to a change made to an existing product, idea, or field.
INVENTION DEFINED
Usually something which has not previously been in existence.
