Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/185487
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dc.titleRISK CONSIDERATIONS IN REVERSE MORTGAGES
dc.contributor.authorANG BENG KEE ANTHONY
dc.date.accessioned2021-01-13T06:11:15Z
dc.date.available2021-01-13T06:11:15Z
dc.date.issued1998
dc.identifier.citationANG BENG KEE ANTHONY (1998). RISK CONSIDERATIONS IN REVERSE MORTGAGES. ScholarBank@NUS Repository.
dc.identifier.urihttps://scholarbank.nus.edu.sg/handle/10635/185487
dc.description.abstractHousing finance for the elderly represents unique opportunities and concerns. These issues are often viewed in the context of the life-cycle hypothesis, which assumes the elderly will spend down accumulated assets during their retirement years. Since the bulk of the non-pension wealth of the elderly population is held in the form of illiquid housing assets, many elderly homeowners live off limited incomes, keeping the level of housing wealth intact. The bequest motive and a strong preference for remaining in the home are often cited to explain the cash-poor, house-rich status of a significant portion of elderly households. The benefits of reverse mortgages are usually described in terms of increasing consumption among the elderly, and facilitating the liquidation of assets as predicted by the life-cycle hypothesis. However, the reverse mortgage might be better thought of as an asset management tool which, in addition to the obvious benefit of increased consumption, is capable of financing home improvements, at-home medical care, early bequests and assistance to offspring and their children without reducing the household's liquid assets. While reverse mortgages offer tempting benefits and a welcome addition to existing retirement planning tool, potential users must be aware of the risk implications. This study attempts to provide an analysis and quantification of several risk considerations. These risks are found to be attributable to uncertainties associated with property values, longevity and interest rates. The results from the analyses indicate that these risks can be well managed in Singapore's reverse mortgage market, mainly due to the high property capital appreciation rate, conservative loan structure, and stable interest rates.
dc.sourceSDE BATCHLOAD 20210122
dc.typeThesis
dc.contributor.departmentSCHOOL OF BUILDING & REAL ESTATE
dc.contributor.supervisorADDAE-DAPAAH KWAME
dc.contributor.supervisorDOREEN THANG
dc.description.degreeBACHELOR'S
dc.description.degreeconferredBACHELOR OF SCIENCE (REAL ESTATE)
Appears in Collections:Bachelor's Theses

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