Comparative And Realistic Research On The Ways Of Using The Value Of Houses

With the background of serious population aging, they that the traditionalfunction of family becoming weak and the whole social pool pension gap becoming largemake the originally one-fold way hardly to take the main responsibilities. So, it is veryimportant and necessary to explore a new way of providing for the aged.Using the value of houses to live is a new channel of pension, and related studiesin foreign countries have confirmed that poor old men and the elderly hoping to improvelife’s quality can make use of using the value of houses to improve life and enjoy betterlife.Based on the theories of life cycle and wealth for the intergenerationaltransmission, through the comparisons between the successful and failure implementationof overseas reverse mortgages, we may find the conditions of carrying out reversemortgages in China. Combining the size of our current elderly population and the scale ofthe home equities the families owned, reverse mortgages’ market survey was made toknow the participation degree of reverse mortgages. In the analysis, stratification fromgender, age, education and income was made to compare and inspect the differencesamong the respondents. For further study, Logistic model was established to help peopleunderstand the degree of differences. On above analysis, it may provide empirical evidencefor locating the reverse mortgages’ participants preliminarily.Except reverse mortgages, there are other forms such as rent, selling (includingrenting big houses to renting small houses, renting houses to live in nursing homes andselling big houses to purchasing small houses, selling houses to live in nursing homes andselling houses to rent houses). In qualitative analysis part, state above ways of theiradvantages and disadvantages, and compare them on how to deal with houses, financialconcentration and the amount of cash. In quantitative analysis part, through simulationcalculation, the scale of cash flow of above ways was simulated. On the base of simulation calculation, comparisons were made among above ways. In a view of above qualitative andquantitative analysis, hope to offer reference for the elderly to choose appropriate ways,and improve their living level.