|
The purpose of this study is to try to take some
macroeconomics variables into account to establish a
mathematic model which could evaluate the benefit of credit-
purchasing housing and rental housing by using net present
value. Furthermore, the study suggests one way to point out the
break-even point for resale of credit-purchasing housing and
rental housing from consumers'' point of view.
Then, three respective cases would be studied in the
model. All the outcomes could be gained from Excel file
programmed by the model. So as to point out the benefits of
alternatives.
After this cases analysis, conclusions could be sum-
marized as follows：
1. It is advantageous to credit-purchase house when nominal
interest rate or growth rate of renting house is high because
the net present value of renting house is low.
2. It is disadvantageous to purchase a house if the rate of
return of individual investment increases. One should
allocates his fund to the financial products which
have higher returns and rent a house instead of
purchase one. 3. When the loan
rate decreases, the monthly installment payment
goes down. This would stimulate consumers to credit-
purchasing a house.
|