The Research Of Purchasing House By Joint Venture For Retirement

With the aggravating degree of China’s aging society, the life quality of elder people, especially the living quality, is getting more and more attention. At present, the situation of old people in China can be summarized as poor living quality, but holding certain monetary assets. Based on the situation, purchasing house by joint venture for retirement is proposed by this article to improve the living quality of them.Purchasing house by joint venture for retirement refers to that old people buy a house and live in it until death by using part of its own funds, coupling with a loan applied by a financial institution which offers the service. Like the capital contributions, the property’s ownership is divided into two stages, the old people has the whole ownership until death while the agency has it after the death. Obviously, the investment proportion of the two parties is a key problem, directly affect the promotion of the product.Based on relevant references, this paper builds a comprehensive pricing system for the joint purchase by considering the volatility of the mortgage interest rate and house price, fluctuations of the expect age, risk free rate, the house depreciation and fee. This article uses dynamic diffusion model, insurance life table, Lee-Carter forecast model and wavelet neural network model to describe loan interest rate, expect age and house price in the future respectively.The conclusion of pricing in purchase house by joint venture comes out by using the Monte Carlo simulation method and latest data under the comprehensive pricing system. The result is reasonable and reflects risks taken by both involved sides according to the explanation and comparison, and can make contributions to promote the business.