Publicação
To buy? To rent? To each its own
| Resumo: | Buying a house is one of the most important economic decisions made by many households over their life (Arce and López-Salido, 2006) and has important consequences to the economy as a whole. Portugal is a country featured by the strong own home purchase demand, as consequence of incentives to home acquisition, namely the easily accessible mortgage loans and the numerous failures on the Urban Lease Act (ULA). After successive failures on the implementation of reforms in the ULA, with the managing and financial assistance program in Portugal appears a new opportunity to new laws made in effect. This research departs from Tabner (2008) paper which analyses six hypothetical housing purchasers using the Gordon Growth Model. The same model, with the properly changes, will be applied in the Portuguese context in three distinct periods: in the early 90s; at the present time, before the expected new law; and a few years from now, when the new ULA is in effect. Its conclusions will illustrate the impacts on the financial decision of buying or renting a house depending if it is to own or to let. |
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| Autores principais: | Manha, Ana Carolina Henriques |
| Assunto: | Lease versus buy Residential real estate Housing Household finance Arrendar versus comprar Imobiliário residencial Habitação Finanças domésticas |
| Ano: | 2012 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | ISCTE |
| Idioma: | português |
| Origem: | Repositório ISCTE |
| Resumo: | Buying a house is one of the most important economic decisions made by many households over their life (Arce and López-Salido, 2006) and has important consequences to the economy as a whole. Portugal is a country featured by the strong own home purchase demand, as consequence of incentives to home acquisition, namely the easily accessible mortgage loans and the numerous failures on the Urban Lease Act (ULA). After successive failures on the implementation of reforms in the ULA, with the managing and financial assistance program in Portugal appears a new opportunity to new laws made in effect. This research departs from Tabner (2008) paper which analyses six hypothetical housing purchasers using the Gordon Growth Model. The same model, with the properly changes, will be applied in the Portuguese context in three distinct periods: in the early 90s; at the present time, before the expected new law; and a few years from now, when the new ULA is in effect. Its conclusions will illustrate the impacts on the financial decision of buying or renting a house depending if it is to own or to let. |
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