The Research About Feasibility Of Housing Endowment In China

The so-called house-for-pension is a process to support elders by transforming house property in financial or non-financial means, such as sale, rent, mortgage and assets transformation. Three practical approaches are available to implement house-for-pension scheme, leasing urban house and living in suburb or aged care center, and taking house as reverse mortgage for endowment insurance. We are much familiar with the first two approaches, while the third one is a brand-new way to support elders. This scheme operates like this: a lender makes payments to you based on a percentage of the value in your home. When you no longer occupy the property, the lender sells it in order to recover the money that was paid out to you. This operation is just the opposite to that of mortgage loan, so it is called reverse mortgage loan.The proposal of house-for-pension is helpful to improve life standard for elders and alleviate financial pressure as well as social security pressure. However there is also a long way to go to carry this scheme into effect. In this paper we provide a detailed introduction of reverse mortgage operation and related instances in other countries, furthermore we discuss the feasibility of this new concept of scheme and barriers encountered when it is performed in our country.