NIRA Research Report No. 20010008
Research on the effective utilization of residential
property for elderly people's living finances
This study group focused on the issue of effective ways for utilizing residential property as one means of self-supporting finances for elderly peoples living. In this context, the group examined the feasibility of performing such financing as a private enterprise as well as investigated the necessary support for implementation. Based on elderly peoples diversified needs, the group considered several plans, including cases where individuals continue living in their residences and cases in which they move from one dwelling to another. The main conclusions are as follows.
In cases where elderly people continue living in an existing home, there is a significant risk in the loss of property value and return, since the property in question can not actually sold off until the elderly resident passes away (dies). Since this risk cannot be undertaken by private entities alone, some framework is required to mitigate and disperse the risk through the participation of a public organization.
In the case of an elderly resident moving to another house, it may be easier to make this a viable the business, since the concerned property can be sold off immediately, causing little property-value loss risk. In order to promote this further, it is necessary to reform some of the real-estate related taxation laws and to strengthen the integration and collaboration among related enterprises such as real-estate agents, housing construction, insurance, banking, etc.
The basic condition for business promotion is to stabilize the resident-property value, through appropriate market evaluations. For this reason, it is important to improve the secondary market of existing residential property to enhance its value, and to create a framework for appropriately assessing property values in the market (the reformation of land-oriented consciousness, establishment of the evaluation system of the existing resident property, etc.).
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