UNIVERSITY OF NAIROBI
The relationship between Social Capital, Mortgage Financing and Performance of Real Estate in Kenya A Case Study of Nairobi
MURUNGI ROYFORD KINYUA
A PROJECT PROPOSAL PRESENTED IN PART FULFILLMENT OF THE AWARD OF A BACHELORS DEGREE IN REAL ESTATE AT THE UNIVERSITY OF NAIROBI, DEPARTMENT OF REAL ESTATE AND CONSTRUCTION MANAGEMENT
The purpose of this study is to determine the relationship between Social Capital, Mortgage Financing and Performance of Real Estatein Kenya. This study is guided by the following three research questions: What is the relationship between Social Capital and Mortgage Financing?What is the relationship between Mortgage Financing and Performance of Real Estate?What is the relationship between Social Capital and Performance of Real Estate?
The research design is descriptive in nature focusing on real estate sector in Kenya. Stratified sampling technique will be used to select the sample in which twenty (20) real estate firms and 30 firms real estate property developers; giving a total of 50. From the selected real estate’s firm, managing directors will be randomly selected from each of the firms giving a sample of 50. The staff includes both management and non-management staff categorized into four levels; senior level management, middle level management, supervisory staff and general staff. Information will be collected using a questionnaire developed by the researcher and administered with the help of a trained research assistant.
This study will be of great importance to other researchers and academicians who seek to understand the relationship between Social Capital, Mortgage Financing and Performance of Real Estate in Kenya. The study will also be practical importance to mortgage sector and property development institutions or organizations in Kenya.
Table of Contents
1.2 Statement of Problem
1.3 Purpose of the Study
1.4 Research Objectives
1.5 Research Questions
1.6 Significance of the Study
1.7 Scope of the study
2.2 Social Capital
2.2.1 Overview of Social Capital
2.2.2 Bridging and Bonding Social capital
2.2.3 Social Networks
2.2.4 Importance of social capital
2.3 Mortgage Financing
2.3.1 Overview of Mortgage Financing
2.3.2 Types of Mortgages
2.3.3 Importance of Mortgage Financing
2.3.4 Funding Mortgage Loans
2.4 Mortgage Terms
2.4.1 Mortgage Repayment
2.4.2 Mortgage Risks
2.4.3 Mortgage pricing
2.4.4 Mortgage insurance
2.5 Mortgage Interest Rates
2.6 Performance of Real Estate
2.6.1 Rental Income
2.6.2 Return and Risk
2.7 Relationship between Social Capital and Mortgage Financing
2.8 Relationship between Mortgage Financing and Performance of Real Estate
2.9 Relationship between Social Capital and Performance of Real Estate
3.1 Research Design
3.2 Study Population and Sample Size
3.3 Sampling Design and Procedure
3.4 Data Source
3.5 Data Collection Instruments
3.6 Measurement of Variables
3.7 Validity and Reliability of the Instrument
3.8 Data Analysis
APPENDIX I: COVER LETTER
APPENDIX II: QUESTIONNAIRE
The commercial real estate market worldwide is highly dominated by institutional investors. At present challenge to private real estate investments because individual properties are not bought and sold on a regular basis like stocks and bonds (Kohnstamm, 1995). Most of the developed countries use stocks and bonds in financing of real estate but in Kenyait’scompletely different as we use mortgage to finance. Mortgage financing refers to a long term loan secured by collateral of some specified real estate property that the...
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