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The Role Of The Financial Investors In Housing Provisioning In Nigeria
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CHAPTER ONE
BACKGROUND TO THE STUDY
1.1 Introduction
Housing as
a social need is vital to socio-economic development of every country
(Giddings, 2007). The housing Investors is generally accepted as one of
the most important determinants of the economic and social wellbeing of
people. It plays a key role in the lives of people as the provision of
shelter is one of the basic necessities of man (Moss, 2010). The need to
provide adequate housing cannot be over emphasized and its importance
can hardly be exaggerated (IMF, 2011).
Derban et al (2002) indicate
that the availability of adequate and decent housing enhances good
living conditions and productivity of all individuals. It plays a vital
role in the health, happiness and civilized living of the individuals.
Housing does not only satisfy the physical and biological requirement of
man but also upholds his dignity and improves his quality of life (NCH,
2008). The provision of housing is so linked with national economic
development that the rate of house construction is directly related to
the economic performance of a country (BoG, 2007).
Unfortunately, the
provision of housing worldwide has not been able to meet demand (Ogu
and Ogbuozobe, 2001). This lag can be attributed to the population surge
which has more than doubled in numbers in recent times (Giddings,
2007). Most developing countries are confronted with the problem of
accommodating the rapidly growing population especially in their urban
areas and Ghana is not an exception (Konadu- Agyeman, 2001). The
provision of adequate shelter is one problem that the country has had to
contend with. The inadequate housing stock and the lack of basic
housing requirements induces stress and affects the living condition of
households as well as productivity( Derban et al,2002).
One of the
major problems facing housing delivery in Ghana is finance. The
unavailability and inaccessibility of housing finance mechanisms has
been identified as one of the important hurdles in improving housing
delivery in the country (Hoek- Smit, 1998).
There are two main
sources of finance in the housing finance system (Moss, 2010). They are
the formal and financial sources. The formal source consists of
government budgetary allocation and financial institutions in the form
of mortgages. The financial sources include personal/family savings,
individual money lenders, and remittances from family members.
Over
the years, government of Ghana through housing schemes and plans has
found ways and means of financing housing in the country. The rationale
for government intervention in the housing market revolves around
the goal of providing all Ghanaians with a decent house in a
suitable living environment (IFA, 1993). During the 1970‟s and the
1980‟s, the main focus of government housing intervention in the country
was by embarking on mass housing projects for the citizenry with the
government being the sole financier of the projects. Examples of some of
these housing projects are the government built low and medium class
estates for civil servants (Afrane and Asamoah, 2011).
Currently
government plays a double role when it comes to financing
housing delivery (IFA, 1993). The government plays a direct role through
the construction of public/mass houses but it is mostly not realized
due to the lack of funds, lack of coordination and policy abandonment
due to change in government. The government also plays an indirect role
by creating an enabling environment through tax policies which includes
tax subsidies for real estate developers and subsidized interest rates
for borrowers from financial institutions associated to housing finance
(eg. Home Finance Company Ltd).
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ABSRACT - [ Total Page(s): 1 ]Housing plays a key role in the socio-economic development of every country but unfortunately, housing supply worldwide has not been able to meet demand. The inadequate housing is one of the biggest challenges facing both developed and developing countries today with finance being a crucial factor. The financial Investors is the largest housing supply system but has not been able to meet the increasing demand partly as a result of the inadequate and ineffective financial ... Continue reading---
