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Challenges Associated With Valuation Of Specialized Properties
[A CASE STUDY OF HOPE ALIVE TRUST HOSPITAL IDOFIAN KWARA STATE]
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1.6 STUDY AREA
Ilorin is located about 256km. north east of Lagos and 80km, from the NigerRiver at Jebba. It is strategically located as the “gateway†between the northern and southern part of Nigeria. The city was formally part of the ancient old Oyo Empire (Oyo Ile) under the Alaafin of Oyo.
Ilorin is believed to have been founded between 1600-1700AD there is no element on the origin of the town while some believe it was founded by “Ojo Isekuse†a hunter from Oyo Ile, otherscontended that it was founded by lettering, afonja’s grand father.
The name of the town, Ilorin came from either “Ilo-irin†(sharpening of iron) of from “Ilu-irin†(the town of the elephants). This conjecture is based on the presence of a rock traditionally used for the sharpening of iron in the city and the presence of elephants in the area in the past.
Idofian is a populated placed in Kwara State Nigeria with the region forth code of Africa, middle East. It coordinates are 80 22’60N and 40 43’0E in degree seconds 0r 8.38333 and 4.71664. Idofian is located in Nigeria about 319km west of Abuja the country’s capital town, the local time zone is named Africa/Lagos. Idofian town is first hamlet with few houses before it is developed a little as it is. In Idofian today we can see schools, hospitals, radio station, hotel, guest house, churches, mosques e.t.c that is why Hope Alive Trust word Assembly is choosen as a case study for my project.
Hope Alive trust hospital is located within hope Orphanage Home, an off shoot of word Assembly church in Idofian, Ifelodun Local government area of Kwara state around Ilorin axis. Hope orphanage home is a house provided for the children that are abandoned or that their parent don’t have the power financially to take care of them. This children, some of them have health challenges that is why hospital is built within the Home that is hope orphanage home for the care of the children and it is also a benefit for the town Idofian.
Hope alive trust hospital building, foundation was laid in April 2012 at Idofian, Kwara State Nigeria (a predominantly Muslim community). By April 2015 however, the front half of the hospital was completed and useable stocked with initial medical equipment that same year and medical outreach was held at the hospital using the front half. This hospital is to remain opened post- Hope alive trust mission with volunteer staffing.
Word Assembly itself is a founder of Pastor and Mrs. Omolehin that also have a lot of the church and orphanage home round the globe.
1.7 LOCATION SKETCH
1.8 DEFINITION OF TERMS
There are some common terms used in valuation however some of the pertinent terms are discussed below.
1. Value:- this is the highest price estimated in terms of money which a property will bring of expose to sale in the open market allowing a reasonable time to find a purchase who buys with the knowledge of all the uses to which the property is adopted and from which its capable of being used (Ring 1970).
2. Rental value:- this is the annual or periodic payment for the use of land and buildings. In fixing rental values, the valuer not only put into consideration the rent on the subject property but also rent on comparable properties within the vicinity. But it is essential that the appreciates the economic factors governing the rents, which will enable him understand fluctuations in rental values and on advising on the reasonableness or otherwise of existing rents and market price. (Bola, 1999).
3. Income:- is the amount realized at the end of a transaction (Sunday 2001).
4. Outgoings:- costs incurred by the owner of an interest in property. Usually calculated on a yearly e.g management, repairs, rates, insurance and rent payable to the holder of a superior interest, as appropriate to his contractual or other abilities it’s prudent to make annual provision for future items involving expenditure at intervals of more than one year. (Kuye 2000).
5. Virtual rent:- is the rent paid plus the annual equivalent of any capital sum that may have expended on the premises from time to time. Thus virtual rent is a term use to designate the equivalent annual cost of property to occupies in cases where capital has been paid in live off or addition to rent. Ifediora 1998.
6. Premium:- according to oxford dictionary define premium as an amount to be paid for a contract of insurance.
7. Risk rate of return on capital:- this is an important “clause which any reasonable investors be it in landed property or not, would likely to consider in a process of going into any investment. The fact is related to the capital yield which gives an indication of the degree risk attacked to an investment. (Alabi 2012).
8. Depreciation:- (Alabi 2012) define depreciation as a method of allocating the cost of tangible asset over its useful life. When a new building, plant or machinery is built or purchased, the value will be depreciating year by year
9. Obsolescence:- according to Merriam Webster described as when an apparent of an estate has little or no value its existence. This could be classified into three types which a physically, functional and economic obsolescence. (Kuye, 2000).
10. Open market value:-the best price at which an interest in a property might reasonable be let or sold in the market by private treaty assuming, there is a willing seller and willing buyer, a reasonable period to negotiate the sales and the property will be freely exposed to the market. (Ifediora 1998).
11. Plot:- a small portion of land that is used or intended for a special purpose. Any one of the marketable parcels into which a treat of land is divided upon plotting. (Olayowa 2002).
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