REAL ESTATE RISK AND ITS IMPLICATION FOR PROJECT VIABILITY (A CASE STUDY OF EKEDO RESIDENTIAL ESTATE, UYO)
ATTENTION:
BEFORE YOU READ THE ABSTRACT OR
CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK
YOU!
INFORMATION:
YOU CAN GET THE COMPLETE
PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL
INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS
PAGE. OR YOU CAN CALL: 08068231953, 0816
REAL ESTATE
RISK AND ITS IMPLICATION FOR PROJECT VIABILITY (A CASE STUDY OF EKEDO
RESIDENTIAL ESTATE, UYO)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Real estate
investing involves the purchase, ownership, management, rental and/or sale of
real estate for profit. Improvement of realty property as part of a real estate
investment strategy is generally considered to be a sub-specialty of real
estate investing called real estate development. Real estate is an asset form
with limited liquidity relative to other investments, it is also capital
intensive (although capital may be gained through mortgage leverage) and is
highly cash flow dependent (Syz, 2008). If these factors are not well
understood and managed by the investor, real estate becomes a risky investment.
The primary cause of investment failure for real estate is that the investor
goes into negative cash flow for a period of time that is not sustainable,
often forcing them to resell the property at a loss or go into insolvency. A
similar practice known as flipping is another reason for failure as the nature
of the investment is often associated with short term profit with less effort
(Clayton, 2007).
Management
and evaluation of risk is a major part of any successful real estate investment
strategy. Risks occur in many different ways at every stage of the investment
process. For instance mitigation strategy for fraudulent sale is to verify
ownership and purchase title insurance. Real estate owners often assume risk on
their property exposure in response to unavailability of coverage. While risk
retention by ‑ financially sound companies may help
to reduce their cost of risk, absence of insurance is not always desirable. In
many cases, property owners are required under the terms of their loan
covenants to maintain full insurance to value, with restrictions placed upon
the amount of deductibles they may carry (Fisher, 2005). Additionally, under
high-deductible or self-insurance programs, operating companies no longer have
a budgeted premium, and payment of unexpected retained losses creates potential
cash flow problems. Finally, property
owners or management of companies have no ability to charge the full cost of
retaining property risk to their clients. Although real estate markets
represent a large proportion of total wealth in both developing and developed
countries, the real-estate derivatives markets are still lagging behind in
volume of trading and liquidity with has greatly influenced project viability
(Black, 1986). Over the last few years there has been increased activity in
developing derivative instruments that can be utilized by asset managers to
reduce real estate risk. The possibility of financial loss occurring as the
result of owing a real estate investment and its implication on project
viability will be focused on in this study. Real estate risk might arise from such
things as liability, legal issues, partner problems that can force a sale, fire
or theft, loss of rental income and purchasing property with an imperfect
title.
1.2 STATEMENT OF THE PROBLEM
Real estate
management is a particularly difficult challenge because of its tendency
towards liquidity. Typically, even published indices in real estate are based
on annual appraisals of large properties, not actual transactions. The recent
unprecedented recession has resulted in major long term distress across the
real estate industry, and has had severe implications for owners, developers,
managers and investors alike. Environmental and construction exposures,
catastrophic modeling, stricter lender requirements, and complex requirements
involving distressed banks are just some of the risks facing the real estate
industry. The researcher however will examine the real estate risks and its
implication of project viability.
1.3
OBJECTIVES OF THE STUDY
The
following are the objectives of this study:
1. To identify the risks involved in real estate
investments.
2. To examine the effect of real estate risk on
project viability
3. To identify ways to minimize risk in real
estate investment.
1.4 RESEARCH QUESTIONS
1. What are the risks involved in real estate
investments?
2. What is the effect of real estate risk on
project viability?
3. What are ways to minimize risk in real estate
investment?
1.5 HYPOTHESIS
HO: real
estate risk does not affect project viability
HA: real
estate risk does affect project viability
1.6 SIGNIFICANCE OF THE STUDY
The
following are the significance of this study:
1. Result of this study will educate the general
public, investors and estate managers on the real estate risks, how it can be
minimized and its implication on project viability.
2. This research will also serve as a resource
base to other scholars and researchers interested in carrying out further
research in this field subsequently, if applied will go to an extent to provide
new explanation to the topic.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study
on real estate risk and its implication on project viability will cover all the
risks an investor is exposed to in real estate with a view of understanding its
effect on viability of project.
LIMITATION
OF STUDY
Financial
constraint- Insufficient fund tends to impede the efficiency of the researcher in
sourcing for the relevant materials, literature or information and in the
process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will
simultaneously engage in this study with other academic work. This consequently
will cut down on the time devoted for the research work.
HOW TO RECEIVE PROJECT
MATERIAL(S)
After paying the appropriate
amount (#5,000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1)
Your project topics
(2)
Email Address
(3)
Payment Name
(4)
Teller Number
We
will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account
Name: AMUTAH DANIEL CHUKWUDI
Account
Number: 0046579864
Bank:
GTBank.
OR
Account
Name: AMUTAH DANIEL CHUKWUDI
Account
Number: 3139283609
Bank:
FIRST BANK
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
https://projectmaterialsng.blogspot.com.ng/
https://foreasyprojectmaterials.blogspot.com.ng/
https://mypostumes.blogspot.com.ng/
https://myeasymaterials.blogspot.com.ng/
https://eazyprojectsmaterial.blogspot.com.ng/
https://easzprojectmaterial.blogspot.com.ng/
Comments
Post a Comment