International Journal of Social Science & Economic Research
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Title:
AN ASSESSMENT OF THE APPROPRIATENESS OF THE INVESTMENT METHOD OF VALUATION FOR RESIDENTIAL PROPERTIES IN LAGOS, NIGERIA

Authors:
Stanley Chika Nwaogu , Esther .I. Oladejo and Charles .C. Egolum

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Stanley Chika Nwaogu1 , Esther .I. Oladejo2 and Charles .C. Egolum3
1. Department of Estate Management, University of Nigeria, Enugu Campus, Enugu, Nigeria
2,3. Department of Estate Management, Nnamdi Azikiwe University Awka, Anambra, Nigeria

MLA 8
Nwaogu, Stanley Chika, et al. "AN ASSESSMENT OF THE APPROPRIATENESS OF THE INVESTMENT METHOD OF VALUATION FOR RESIDENTIAL PROPERTIES IN LAGOS, NIGERIA." Int. j. of Social Science and Economic Research, vol. 6, no. 8, Aug. 2021, pp. 2799-2825, doi.org/10.46609/IJSSER.2021.v06i08.017. Accessed Aug. 2021.
APA 6
Nwaogu, S., Oladejo, E., & Egolum, C. (2021, August). AN ASSESSMENT OF THE APPROPRIATENESS OF THE INVESTMENT METHOD OF VALUATION FOR RESIDENTIAL PROPERTIES IN LAGOS, NIGERIA. Int. j. of Social Science and Economic Research, 6(8), 2799-2825. Retrieved from https://doi.org/10.46609/IJSSER.2021.v06i08.017
Chicago
Nwaogu, Stanley Chika, Esther.I. Oladejo, and Charles .C. Egolum. "AN ASSESSMENT OF THE APPROPRIATENESS OF THE INVESTMENT METHOD OF VALUATION FOR RESIDENTIAL PROPERTIES IN LAGOS, NIGERIA." Int. j. of Social Science and Economic Research 6, no. 8 (August 2021), 2799-2825. Accessed August, 2021. https://doi.org/10.46609/IJSSER.2021.v06i08.017.

References

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Abstract:
The investment method of valuation is applied in calculating market value of properties expected to earn income. The method is useful in the process of estimating the non-market value of properties. Calculating market value of residential properties with the application of investment method means estimating the market value of the right to receive infinite income flows. This study examines the appropriateness of the investment method of valuation for residential properties in Lagos. The objectives are to investigating the annual rental growth rate pattern from 2009-2018; factors that informs the investment method of valuation used: preferred valuation method used for valuing residential properties and identify the level of variation in the use of conventional and contemporary investment method. The study population is residential properties and Estate surveyors and Valuers while systematic random sampling approach was adopted. Sample size is 195. Statistical tools used are weighted mean, geometric mean, standard deviation and coefficient of variation, rental index, analysis of variance. The result showed that rental values of residential properties in Lagos increased at a phenomenal rate within the period, 2009 to 2018; rental growth follows similar trend; market analysis and forces are factors informing investment method of valuation used; investment method, comparison and cost method are often used while investment method of valuation is not preferred for residential properties valuation; wide differences exist between conventional and contemporary valuation techniques. Estate Surveyors and Valuers should apply their distinct experience in carry out valuation while ensuring buyers’ preference in the assessment of residential properties.

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