Economic Analyses of Residential Properties among Private Investors in Ile-Ife and Its Environs, Nigeria

Abstract

The study evaluated the economics of residential properties among investors in Ile-Ife and its environs, Nigeria. Primary data that was gathered through administration of structured questionnaire was analysed through descriptive and budgetary techniques. The results indicated that residential properties have approximately five decades as lifespan. Major problems identified were that investors need sums relatively higher than they can easily afford, it was also indicated by most respondents that residential properties do not payback its value during the life time of the primary investor. Among the leading reasons for investing in residential property is that it was seen as a means of tying down money for a later time return. Likewise, respondents indicated that such investment does not crash. It was also considered as a form of inheritance for their children. When budgetary analyses were conducted, all the types of houses; self-contain, bungalow, block of flats were able to pay back the nominal value of the house but none of them had positive value when time value was included at 13.5%. This then bring to conclusion that investment in residential property is not a profitable venture. It was concluded that government should show strong commitment to the issue of residential property. It is hoped that such gesture will bring about good and affordable housing for the people, at the same time discourage investors from investments that cannot guarantee the cost of investing