LAND AND PROPERTY INVESTMENT AND THE CAPITALIZATION OF EQUITY

This study aims to determine the connection between land and property ownership and household equity capitalization. Specifically, it examines the relationship between formal land titles and access to home equity loans and mortgage financing. The study focuses on landlords and landowners in two local government areas: Yenagoa Local Government Area (urban) and Ogbia Local Government Area (rural) in Bayelsa State. Data collected from the study will be analyzed using regression analysis, specifically the Multiple Regression method, to investigate the relationship between dependent and independent variables. A preliminary test will be conducted to check for multicollinearity in the model. The findings of this study indicate a significant positive correlation between formal land titles and access to home equity loans and property sales in Bayelsa State. This suggests that formal land titles improve access to these financial products and contribute to increased property transactions. However, the relationship between formal land titles and mortgage financing was not found to be statistically significant, indicating that other factors may influence mortgage access beyond formal land ownership. Based on these findings, it is recommended that efforts be made to enhance the efficiency and coverage of formal land titling systems. This could lead to greater financial inclusivity and market activity. Possible initiatives may include streamlining bureaucratic processes, reducing associated costs, and providing better public information and support to facilitate the acquisition of formal land titles. By addressing these aspects, access to financial products such as home equity loans and property sales could be further improved, promoting overall economic growth and development.