Study On The Economic Applicability Of Low-rent Housing Investment Trusts Fund

Low-rent housing as indemnificatory housing has played a vital role to solve the problems of the housing difficulties of low-income families in city and improve living conditions and promote social harmony; However, the existing finance models of low-rent housing can not achieve the full supply of low-rent housing, to solve the low-income people's housing problems effectively, to solve this problem, it is extremely urgent to breakout the low-rent housing financing models. The paper illustrates the low-rent housing financing model about REITs, trying to solve the root of the financial "bottleneck" problem.In this paper, the development background of China's low-rent housing is first presented, the present stage of the low-rent housing financing model is proposed, and then to analyze the causes of low-rent housing finance's predicament on the stage; Based on that, several innovative forms of financing models are introduced, by companion, The present paper has determined the economic applicability of the REITs in our low-rent financing model.For the "economic applicability", analyzing the behavior of investors is first presented, analyzing relations between investor and finance units from the perspective of game theory is proposed, and the problems of what qualifications are required for the two sides to achieve win-win cooperation, After that, the paper gives several aspects of the Supervision of REITs which should be noted; Finally, using mathematical model to determine the average yield on the fund market which based on fund performance evaluation theory, through a precondition of low-rent housing fund investment yield is no less than fund year average yield can meet the "Applicability", speculating that the government should provide the amount of financial subsidies to operate low-rent housing REITs effectively.REITs can effectively alleviate the financial burden of the government in the construction of low-rent housing, offers a broad range of financial support, through analysis, this paper obtained a conclusion that low-rent housing REITs can be implemented in xi'an.