Study Of The Financing Pattern For Public Rental Housing Based On REITs

The housing System undergoes the 30 years of reform and development, the affordable housing system has been initially formed multi-level urban housing supply system that Include affordable housing,low-rent housing and a variety of resettlement housing. This has played an important role in solving the housing problems of parts low-income families of towns and cities,easing the contradiction of the domestic demand for housing, stabling the price of house. the existing system of the affordable housing system also has many problems, so a big part of community who have difficult in the housing are excluded from the scope of the affordable housing system. This part including the university student who just graduated , migrant workers , part low income earners in the local cities. Public rental housing is the important supplement and the consummation of our country present housing system .it meet their basic housing needs. amount of public rental house require a huge amount of rent,so Financial bottlenecks impeding the development of public rental housing.Based on the financing of public rental housing system, this paper makes a comprehensive and in-depth study on Public rental housing financing present situation and difficult position and foreign affordable housing Financing. This paper propose a certain reference value for the financing of public rental housing which is Real Estate Investment Trust ( REITs ). This paper mainly studies on three fields. Firstly, Status of financing of public rental housing. Rely on government financial resources can not support large-scale construction of public rental. According to the useful experiences of developed countries and regions. the affordable housing must display the market fully the function. Under government overall plan and guidance, we must develop social capital as an important private source of funds of Public rental housing construction. Secondly, the idea of Using REITs to solve the financing difficulties of Public rental housing construction. REITs is a collection investment products of industrial investment funds. It has the unique advantage in tax incentives, professional management, separation of ownership and management rights, high liquidity, low investment threshold, limited investment risk, stable investment returns. Public rental project has a government background, characteristics of small risk and the expected stable return. It is of value of investment. on the basis of the analysis of REITs this paper analysis the the necessity and feasibility of use REITs to public rental financing. Thirdly, Mode designing of REITs. of public rental housing. the characteristics of REITs of Public rental housing and the special conditions of our country determine that REITs. of public rental housing has particularity in the form and mode of operation. On this basis,proposes the mode of REITs of public rental housing which suits our country national condition. Meanwhile points out the risks and problems of REITs of public rental housing,and put forward rational Suggestions.