ABSTRACT
Residential estate investments give you capital gain and will make you very rich over a period of time. You will be able to convert capital gain into cash flow by using various strategies. But this takes time and most investors do not have the patience to wait that long.
This project work is aimed at highlighting usefulness of Management of public residential estate as a tool of evaluating the performance of residential property for investment decision.
Chapter one (the introduction) will explain the meaning of Management of public residential estate , it will go further to state the purpose of the study, it significance, scope as well as definition of terms with respect of financial analysis.
Chapter two will deal with the literature review. Then the study of background of topic will be equally highlighted. Explanation of selected Management of public residential estate will also be shown.
Coming to chapter three, the techniques of collection of data and data analytical tool to be used will be described here. The techniques for collection of data will include the questionnaire sources. The data analytical tools to be used as percentage size analysis and chi-square.
Chapter four shows the analysis of the data collected.
Finally, in chapter five, the findings be made will be stated, followed by recommendation to ensure effective and efficient use of Management of public residential estate by users for residential property . Finally the conclusion will inform readers or users that usefulness or benefits of Management of public residential estate in evaluating performance of residential property cannot be over emphasized and that if neglected, the shareholders or investors will not know their position or fate in residential property .
TABLE OF CONTENT
Title page ii
Approval page iii
Dedication iv
Acknowledgement v
Abstract vii
Table of content. ix
CHAPTER ONE
- Introduction 1
- Purpose of study 5
- Significant of study 6
- Statement of problem 7
- Statement of hypothesis 9
- Scope and limitation of study 9
- Definition of terms. 9
CHAPTER TWO
REVIEW OF RELATED LITERATURE 13
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 INTRODUCTION
2.2 MEANING OF MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE
2.3 PROBLEMS OF MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE
2.4 MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE IN OTHER COUNTRIES
2.5 HOW MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE OPERATES
2.6 CLIENT PROBLEMS IN TRUSTY ESTATE MANAGEMENT
CHAPTER THREE
METHOD AND PROCEDURE 33
3.1 Sources of data 33
3.2 Sample to be used. 34
3.3 Methods or system of investigation. 34
CHAPTER FOUR.
DATA PRESENTATION, ANALYSIS AND INTERPRETATION 37
4.1 Data analysis 37
4.2 Test of hypothesis 49
4.3 Summary of ratio. 54
CHAPTER FIVE
Summary Of Findings, Conclusion And Recommendation 59
5.1 Findings 59
5.2 Recommendation 61
5.3 Conclusion 62
Bibliography 63
Appendix 69
CHAPTER ONE
1.1 INTRODUCTION
Although residential estate is one of the most stable and profitable investment opportunities available it is the Virtual Residential estate that is the new gold rush. The revolution is happening right under our eyes with new millionaires being created every minute even as you read this article. It is just the beginning of the new wave of wealth creation. Such unique opportunity happens only once or twice in your lifetime. You will have to grab this opportunity with both hands or will regret for rest of your life.
Management of public residential estate are tools used to analyze financial conditions and performance. Financial analysis means different things to different people. Trade creditors are primarily interested in the liquidity of the firm being analyzed. Their claims are short term and the ability of the firm to pay these can best be judged by an analysis of its liquidity.
HISTORY OF MANAGEMENT OF PUBLIC RESIDENTIAL ESTATE IN DIFFERENT COUNTRY
[edit] Germany
Germany is also planning to introduce German REITs (short, G-REITs) in order to create a new type of management of public residential estate vehicle. Government fears that failing to introduce REITs in Germany would result in a significant loss of investment capital to other countries. Nonetheless there still is political resistance to these plans, especially by the social democratic party (‘SPD’). As of June 2006 the ministry of finance has announced that they still plan to introduce G-REITs in 2007. The legal details seem to adopt much of UK-REITs regulations (taxation, public listing, etc.), as far as it is possible to tell yet.[citation needed]
A law concerning G-REITs was enacted 1 June 2007, and is retroactive to 1 January 2007.[8]
[edit] Qualification
* REITs will have to be established as a corporation “REIT-AG” or “REIT-Aktiengesellschaft”.
* At least 75% of its assets have to be invested in real-estate.
* At least 75% of the G-REIT’s gross revenues must be real-estate related.
* At least 90% of the REIT’s taxable income has to be distributed to its shareholders through dividends.
* The corporation is income-tax-exempt, but the shareholders will have to pay individual income tax on the dividends.
* Some restrictions apply on establishing residential REIT’s
[edit] Ghana
REITs have been in existence in Ghana since 1994. The Home Finance Residential property , now HFC BANK, established the first REIT in Ghana in August 1994. HFC Bank has been at the forefront of mortgage financing in Ghana since 1993. It has used various collective investment schemes as well as corporate bonds to finance its mortgage lending activities. Collective Investment Schemes, of which REIT’s are a part, are currently regulated by the Securities and Exchange Commission of Ghana.
[edit] Hong Kong
REITs have been in existence in Hong Kong since 2005, when The Link REIT was launched by the Hong Kong Housing Authority on behalf of the Government. Since 2005, there have been 7 REIT listings as at July 2007, most of which, including Sunlight REIT have not enjoyed success due to low yield. Except for The Link and Regal Management of public residential estate Trust, share prices of all but one are significantly below IPO price. Hong Kong issuers’ use of financial engineering (interest rate swaps) to improve initial yields has also been cited as having deterred investors’ interest[9]
[edit] India
As of January 2010, India was formulating legislation for REITs in the Indian management of residential estate . Once introduced these Indian REITs (country specific/generic version I-REITs) will help individual investors enjoy the benefits of owning an interest in the securitised management of residential estate . The best benefit being that of fast and easy liquidation of investments in the management of residential estate unlike the traditional way of disposing real estate. The government and Securities and Exchange Board of India SEBI through various notifications is in the process of easing the norms of investing in residential estate in India directly and indirectly through foreign direct investment, through listed residential estate residential property , mutual funds etc. With the current residential estate boom and the market being flooded with Initial Public Offer of various listed residential estate residential property in India it will be the best time for investors to own a share of the profiting market economy. Legislative framework, revised investment norms, a favourable investment opportunity, and a clear taxation policy will provide the right kind of investing opportunity in India in the time to come.[citation needed]
[edit] Japan
Japan is one of a handful of countries in Asia with REIT legislation (other countries/markets include Hong Kong, Singapore, Malaysia, Taiwan and Korea), which permitted their establishment in December 2001. J-REIT securities are traded on the Tokyo Stock Exchange, and most service providers of the J-REITs are Japanese residential estate residential property , Japanese conglomerates and foreign investment banks.[citation needed]
Since the burst of the residential estate bubble in 1990, property prices in Japan have seen steady drops through 2004, with some signs of price stabilization and possibly price increase in 2005 and 2006. Some see J-REITs as a way to increase investment in the management of residential estate , although notable increases in asset values has not yet been realized.[citation needed]
A J-REIT (a listed management of public residential estate trust) is strictly regulated under the Law concerning Investment Trust and Investment Residential property (the “LITIC”) and established as an investment residential property under the LITIC.
In addition to REITs, Japanese law also provides for a parallel system of special purpose residential property which can be used for the securitization of particular properties on the private placement basis.
[edit] Pakistan
The Securities and Exchange Commission of Pakistan is in process of implementing REIT regulatory framework that will allow full foreign ownership, free movement of capital and unrestricted repatriation of profits. It will curb speculation in Pakistani management of residential estate s and gives access to small investors diversifying into residential estate as well. The Securities and Exchange Commission of Pakistan following regulatory framework similar to Singapore and Hong Kong REITs.[citation needed]
The Securities and Exchange Commission of Pakistan expects that about six REITs will be licensed within the first year, mainly large assets management residential property applying for it. Pakistan is recently seeing an outflux of investments by foreign residential estate development mostly Malaysian and Dubai based residential property .[10]
[edit] Philippines
REITs in the Philippines will soon be available to the public after the Management of public residential estate Trust of 2009 (RA 9856) lapsed into law on December 17, 2009 and its Implementing Rules and Regulations approved by the Securities and Exchange Commission on May 2010.[11]
[edit] Singapore
Commonly referred to as S-REITs. There are currently 20 REITs listed on the SGX, starting with CapitaMall Trust [12] in July 2002. They represent a range of property sectors including retail, office, industrial, hospitality and residential. S-REITs hold a variety of properties in countries including Japan, China, Indonesia and Hong Kong, in addition to local properties.[citation needed]
S-REITs are regulated as Collective Investment Schemes under the Monetary Authority of Singapore’s Code on Collective Investment Schemes,[13] or alternatively as Business Trusts.[14]
S-REITs benefit from tax advantaged status.
[edit] United Arab Emirates
The REIT legislation was introduced by Dubai International Financial Centre (DIFC) to promote the development of REIT’s in the UAE by passing The Investment Trust Law No.5 that went into effect of August 6, 2006. This restricts all ‘true’ REIT structures to be domiciled within the DIFC. The first REIT license to be issued will be backed by Dubai Islamic Bank with a REIT named ‘Emirates REIT.’ The issue is that DIFC domiciled REIT’s cannot acquire non-Freezone assets within the Emirate of Dubai. The only federally approved Freezone within the UAE is the DIFC itself so therefore we expect to see Emirates REIT focusing all of its attention within this zone. Outside of the zone properties are purchasable by local Gulf (GCC) passport holders only.
[edit] United Kingdom
The legislation laying out the rules for REITs in the United Kingdom was enacted in the Finance Act 2006 and came into effect in January 2007 when nine UK property residential property converted to REIT status, including the five that were FTSE 100 members at that time: British Land, Hammerson, Land Securities, Liberty International and Slough Estates (now known as “SEGRO”). The other four were: Brixton, Great Portland Estates, Primary Health Properties and Workspace Group.[citation needed]
British REITs have to distribute 90% of their income. They must be a close-ended investment trust and be UK resident and publicly listed on a stock exchange recognised by the Financial Services Authority.[citation needed]
To support the introduction of REITs in the UK, the REITs and Quoted Property Group was created by several commercial property and financial services residential property . Other key bodies involved are the London Stock Exchange the British Property Federation and Reita. The Reita campaign was launched on 16 August 2006 by the REITs and Quoted Property Group, in order to provide a source of information on REITs, quoted property and related investments funds. Reita’s aim is to raise awareness and understanding of REITs and investment in quoted property residential property . It does this primarily through its portal www.reita.org, providing knowledge, education and tools for financial advisers and investors.[citation needed]
Doug Naismith, managing director of European Personal Investments for Fidelity International, said: “As existing markets expand and REIT like structures are introduced in more countries, we expect to see the overall market grow by some ten percent per annum over the next five years, taking the market to $1 trillion by 2010.”[citation needed]
[edit] Nigeria
REITs recently took centre stage in Nigeria when the N50billion Union Homes Hybrid Management of public residential estate Trust was launched in September 2008. In 2007, the Securities and Exchange Commission (SEC) issued the first set of guidelines for the registration and issuance of requirements for the operation of REITs in Nigeria is detailed in the Investment and Securities Act (ISA).
[edit] United States
See also: List of public REITs in the United States
In the United States a REIT is a residential property that owns, and in most cases operates, income-producing real estate. Some REITs finance real estate. To be a REIT, a residential property must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.[citation needed]
[edit] Qualification
In order to qualify for the advantages of being a pass-through entity for U.S. corporate income tax, a REIT must:
* Be structured as corporation, trust, or association[15]
* Be managed by a board of directors or trustees[16]
* Have transferable shares or transferable certificates of interest[17]
* Otherwise be taxable as a domestic corporation[18]
* Not be a financial institution or an insurance residential property [19]
* Be jointly owned by 100 persons or more[20]
* Have 95 percent of its income derived from dividends, interest, and property income[21]
* Pay dividends of at least 90% of the REIT’s taxable income
* No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year (5/50 rule)
* At least 75% of total investment assets must be in real estate
* Derive at least 75% of gross income from rents or mortgage interest
* No more than 20% of its assets may consist of stocks in taxable REIT subsidiaries.
1.2 PURPOSE OF THE STUDY
The objectives of this research work is to assess or know the importance/usefulness of Management of public residential estate in EBONY state
The research work will go or examine the indictors for investment in residential property their earning performances, liquidity, positive economic soundness. It will equally examine the indicators of strength, weakness, opportunity and threat (SWOT)
The management will take appropriate corrective actions to improve the result when the weakness are identified. The identification of weakness and consequently improving the result will provide the investors the opportunities to know the propensity of the residential property to achieve progressive growth and equally make decisions of the investment.
1.3 SINGIFICANCE OF STUDY
This study will be very important to the following
- PROSPECTIVE INVESTORS IN RESIDENTIAL PROPERTY : It will enable them determine risks of investment in residential property ie financial position of the residential property thereby making them to invest in a residential property that will be profitably to them.
- MANAGEMENT OF RESIDENTIAL PROPERTY : It provided tool for assessing or evaluating the residential property performance and also taking decision on where to invest.
- GOVERNEMT: It helps the tax board to know the amount that will be taxed on residential property
- EXISTING INVESTORS IN RESIDENTIAL PROPERTY : after analyzing the management of public residential estate in residential property , it will help the existing investors to know whether to continue their investment or withdraw their interest.
1.4 STATEMENT OF PROBLEM
With the collapse of the bubble in the capital market, institutional and foreign investors pulled out of the market leading to a crash in asset values. The severity of the crisis was also increased by the exposure of deposit money banks to the capital market due to a large number of unregulated margin loan facilities extended to clients. This and the lingering effect of oil price bubble in 2009 accounted mainly for the near extinct of credit in the nation’s financial market.
To address the problem of poor infrastructure, a new gas policy has been approved which will ensure the direct allocation of gas, LPFO and PMS to manufacturers. In addition, several other initiatives are being spearheaded by the Government to address the power situation, including dedicating power to industrial clusters. Work is also underway to improve the business climate, including shortening the time for goods clearance at the ports, eventually to no more than 48 hours. The review of the import prohibition list and tariffs are also ongoing. These initiatives are targeted at improving the competitiveness of Nigerian businesses and strengthening the business climate.
In addition to the initiatives outlined above which will have a direct positive impact on growth, productivity and the creation of new jobs, several enterprise development programmes which are focused on the more labour intensive sectors of the economy are currently being developed. Government’s focus is on inclusive growth with job creation and with these and other initiatives to refocus the economy; we expect to see positive results in the medium to long-term.
In 2011, I will expect that residential estate will do better than what we saw in 2010 significantly as we start to feel the effect of AMCON’s operations and especially after April 29. The 3 tiers of the market are expected to pick up but at different times within the year with the high-end as the last to pick up.
1.5 STATEMENT OF HYPOTHESIS
The hypothesis below would be subjected to testing Null Hypothesis
Ho: The use of Management of public residential estate has negative impacts on investment
Alternative Hypothesis
H1: The use of Management of public residential estate has positive impacts on investment
Alternative Hypothesis
1.6 SCOPE AND LIMITATION OF STUDY
The research work will concern or effect only profit making organization. Public corporation are not treated in the study. Time and finance were equally limiting factors of this study finally restricted access o secondary information sources was also restricted in the study.
1.7 LIMITATIONS OF THE STUDY
One major set back in the research work time there was not enough time to give this work the thorough research it deserves.
Limitation in question was also problem since respondents truthfulness in answering question was not adequately guaranteed.
Therefore, the work was limited to the answerers gotten from the respondents.
Frequently rescheduling to the top level managers and then unwilliness, when interview to disclose some vital information they considered confidential to the researcher on the strategic planning methods used by the organization.
Scarcity of books, journals and write ups with enough diverse view or planning contributes yet another limitation and set back to this research work.
The least but most important was financial constraints. The cost transportation to P.H where case study firm is located and foods spent in gathering data were very high.
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