Real Estate Investment is an unpredictable venture that requires adequate precaution initially before capital is sunk into it. An investor of real estate investment, apart from appraising an investment proposal for worthwhileness and suitability is confronted with the problem of how available financial resources should be allocated to the many possible alternative investment projects. This paper examines various investment appraisal techniques vis-à-vis traditional techniques (the payback period, return on capital) and modern techniques (Net Present Value [NPV], and Internal Rate of Return [IRR]) adopted
by an appraiser while taking investment decision. It also highlights factors affecting the validity and reliability of investment appraisal in Nigeria. It concludes by recommending remedial measures to de-escalate these problems.

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Categories: Volume 1 No 2