Study note on home ownership

Study note on home ownership

References with extracted contents

Angelini, V., A. Laferrère and G. Weber. 2013. "Home-ownership in Europe: How did it happen?" Advances in Life Course Research 18, Elsevier: 83-90.

"....for a vast majority of older Europeans, the most important component of their wealth is housing. It has also an important impact on welfare, as many consider their home as a security for old age, self-insuring them against rent or pension risk (see Conley & Gifford, 2006; Laferre` re, 2011a). Hence it is important to know how people acquired their home or what could have prevented others from doing so";

"The life-cycle model of saving under borrowing constraints predicts a hump shaped home-ownership age profile. The ownership rate increases with age as people save and become home-owners, and declines in old age as people draw on their housing equity (Artle & Varaya, 1978). Taking up a mortgage usually requires a down-payment and young households might have to delay home-ownership until they have accumulated enough assets (Chiuri & Jappelli, 2003). Intergenerational transfers, both in the form of inter-vivos gifts and of bequests, might help overcome credit constraints and shorten the saving time .... The employment history of the individual and the spouse are also likely to be important";

"To explain the motivation of intergenerational transfers, economists have developed models of altruism and exchange within families, which help study how the micro family level reacts to and interacts with the macro level of the public transfers ..... It can be shown that the motivation of the private transfer, together with the way it is financed, help predict the interaction between family and the ‘‘welfare state’’.";

Christine Whitehead Sarah Monk, (2011),"Affordable home ownership after the crisis: England as a demonstration project", International Journal of Housing Markets and Analysis, Vol. 4 Iss 4 pp. 326 - 340.

"Intermediate tenures[1] have been of particular interest since the turn of the century as housing affordability worsened in many countries, especially in the early part of the decade. Moreover, rising house prices helped to ensure that almost all of those involved in intermediate ownership products benefited from partial ownership. At the same time, there was growing pressure to reduce public expenditure and to reduce the risks faced by house purchasers, especially in the face of the financial crisis ...... In the main, the emphasis has been on shared equity and other low-cost home ownership (LCHO) products, partly because owner-occupation is seen as the tenure of aspiration for employed households, partly because it brings with it access to private funding and partly because it has the potential to reduce risks";

"The post-2007 crisis has radically changed both the relative importance of different objectives and the arithmetic of partial ownership solutions across the world ..... but particularly in countries dependent on private finance for new development and house purchase. It has raised problems about the value of partial ownership approaches in this very different economic environment, which has impacted on both financial viability and the extent to which households on the one hand and suppliers on the other can benefit from sharing arrangements. At the same time, partial ownership products have been seen as potentially effective ways of restarting development and reducing the risks faced by new purchasers";

"There are at least five distinct dimensions along which different forms of partial ownership can be located and which affect the nature of the product and its value in different contexts. These include: (1) a spectrum from full ownership to short-term renting/letting based on different property rights and powers to use and transfer these rights; (2) a financing spectrum between outright ownership where the owner holds all the equity to wholly debt financed; (3) a spectrum of how the risks both with respect to capital values and repayments are allocated; (4) a spectrum of subsidy from no direct subsidy to wholly subsidised provision ....  and within this two additional distinctions between  demand and supply subsidies and between government subsidy and transfers from other stakeholders; and (5) a spectrum from concentrating on supporting consumers to enable them to have adequate housing to enabling additional housing provision by supporting providers";

Li, W.D.H. 2002. "The  growth of mass home ownership in Taiwan" Journal of Housing and the Built Environment 17, Kluwer Academic Publishers: 21-32.

"Upon closer examination of mass home ownership in Taiwan, various routes to home ownership come into the picture. These paths are related to patterns of spatial distribution and differ according to one’s occupational group and the particular form of owner-occupied housing provision. As far as the regional difference is concerned, home ownership in rural areas has been achieved mainly through building for oneself and inheriting from the previous generation. Together, these paths account for over 80 per cent of all rural homeowners. Self-building is a traditional means of non-market housing provision. It accounts for the high rate of home ownership that was found at the early stage of industrialization. Home purchase accounts for less than one-fifth of all rural homeowners. In contrast, home ownership in highly urbanized areas is achieved mainly through market exchange. Over 70 per cent of all urban homeowners in 1995 had acquired their home through purchase on the housing market";

"For higher-income households in the managerial and professional groups, the main path to home ownership is through the housing market. This accounts for 73 and 78 per cent within the two groups, respectively. People who became homeowners through self-help and inheritance together make up less than 30 per cent of the homeowners in these two higher-income groups. For those households in technician/semi-professional occupations, buying into home ownership is still the main route. Even households in lower-paid white-collar jobs and those doing unskilled work have been overwhelmingly drawn into the owner occupied sector through the housing market. Less than 40 per cent of all those households got into the tenure through self-help and inheritance";

Mulder, C.H. 2006. "Home-ownership and family formation" J Housing Built Environ 21, Springer: 281-298.

"Even though much of the literature on private home-ownership focuses on financial or investment aspects, the owner-occupied home is first and foremost a place where people live, mostly with families. For Frans Dieleman, to whom this article is devoted, home-ownership and tenure choice were major topics of research. In his work on home-ownership and tenure choice, the connection with family characteristics and events in the family life course was always a prominent issue";

"In Western countries, family formation and the home-ownership of households are closely connected. It has repeatedly been found, for example, that the transition to first-time home-ownership is frequently synchronized with marriage, is often made in anticipation of parenthood, and is rare among singles";

"... it has also been argued that there might be a negative association between home-ownership and family formation at the individual or household level. Courgeau and Lelie`vre (1992) for example argue that the cost of home-ownership might compete with the cost of rearing children";

"The countries in Europe with the highest levels of home-ownership (Italy, Greece and Spain, where the percentage of homeowners is over 75%) are also those with the latest timing of leaving the parental home, partnership formation and parenthood and with the lowest fertility. This finding suggests that a high level of home-ownership might lead to difficulties for young people to start their independent household careers and form partnerships and families";