A study on how cooperative can be used as a tool in real estate investment: a case study of Nigeria

Abstract

Over the years there has been a tremendous increase in the demand for housing in Nigeria, particularly affordable housing due to the increase in rental and the general rise in price level. To tackle this problem, this thesis proposes that cooperative tenure be pursued as a tool for real estate investment in Nigeria. The problem which can be associated with the inability and ineffectiveness of both the public and private sectors to meet the housing needs of the general population. This Thesis contends that with cooperative, aspiring home owners can break themselves off from the pack of government dependents. The government and the financial institutions have been very slow and they cater for a small sector of the millions of demand for affordable housing. The proposed solution is pursued through innovative financing method commonly known as Musharaka Mutanaqisah (diminishing partnership). Data collected through primary source using questionnaire, a structured closed end questionnaire distributed to the general population of some selected states in Nigeria have been utilized for the empirical studies. The questionnaire provided adequate information on how cooperative would benefit the general population in acquiring property. The paper is designed to fulfill the requirement for an actual implementation of the proposed model in Nigeria. This study is expected to benefit the real estate industry in Nigeria as a whole and also provide an alternative to the increasing dependence on debt based economic system which is gradually affecting the housing industry. The result reveals that there is great prospect and benefit from using co-operative model for real estate investment in Nigeria and the proposed model is feasible. In addition to that the proposed model is a better alternative to the current home financing methods currently available in Nigeria.