INVESTMENTS IN HOUSING CONSTRUCTION: FEATURES AND MODERN TRENDS

Keywords: housing market, leasing, mortgage lending, equity financing, digitalization, crowdfunding.

Abstract

The relevance of the topic of the article is due to the importance of the problems of investing in housing construction for the economy of any country. Mechanisms for financing housing construction are very diverse and are constantly evolving under the influence of many factors: geopolitical, economic (stability of the credit and financial, insurance and stock markets, national currency exchange rate, inflation rate, solvency of the population, etc.), technological (introduction of information technologies) and etc. The traditional methods of financing housing construction are: self-financing, budget financing, credit financing, mixed financing (equity financing (equity), public-private partnership, etc.). An urgent task is to search for new mechanisms for financing housing construction, which would allow expanding the possibilities of attracting funds from the population, potential buyers, businesses, and financial intermediaries. At the same time, it is important not only to expand the possibilities of attracting additional financial resources, but also to find mechanisms to ease the financial burden of payments for investors, reduce and distribute investment risks. Modern information and communication technologies create new opportunities for technical implementation and acceleration of investment processes, contribute to the emergence of radically new mechanisms that allow diversifying risks, expanding the number of investors, easing the debt burden for potential borrowers, etc.

References

1. Agrawal A.K., Catalini C., Goldfarb A. (2013). Some simple economics of crowdfunding. Working Paper 19133, National Bureau of Economic Research, Cambridge, 1–47. URL: https://www.nber.org/papers/w19133
2. Ahlers G., Cumming D., Günther Ch., Schweizer D., (2015) Signaling in Equity Crowdfunding. Entrepreneurship Theory and Practice, Volume 39 Issue 4, July 2015. URL: https://journals.sagepub.com/doi/10.1111/etap.12157
3. Basel Committee on Banking Supervision (2004) International convergence of capital measurement and capital standards – a revised framework, vol June. Bank for International Settlements, Basel.
4. Beidleman CR, Fletcher D, Vesbosky D (1990) On allocating risk – the essence of project finance. Sloan Manag Rev 31:47–55 URL: https://www.proquest.com/openview/0760dc2693e594d50c404cf597a8c15f/ 1?pq-origsite=gscholar&cbl=26142
5. Brealey RA, Cooper IA, Habib MA (1996) Using project finance to fund infrastructure investments. J Appl Corp Finance 9:25–39 URL: https://onlinelibrary.wiley.com/doi/ abs/10.1111/j.1745-6622.1996.tb00296.x
6. Daniel J. McDonald and Daniel L. Thornton, “A Primer on the Mortgage Market and Mortgage Finance”, Federal Reserve Bank of St. Louis, January/February 2008, http://research. stlouisfed.org/publications/review/08/01/ McDonald.pdf
7. Esty B, Chavich C, Sesia A (2014) An overview of project finance and infrastructure finance–2014 Update. In: Working paper. Harvard Business School, Boston. URL: https://hbsp.harvard.edu/product/214083-PDF-ENG
8. Firek, A.M. (2017). Real Estate Crowdfunding – Tłum jako alternatywne źródło finansowania nieruchomości, Rynek – Społeczeństwo – Kultura, No 3(24). URL: https://www. academia.edu/99311447/Real_Estate_Crowdfunding_T%C5%82um_jako_alternatywne_% C5%BAr%C3%B3d%C5%82o_finansowania_nieruchomo%C5%9
9. Gallego A.F.A. (2011). Crowdfunding: decisiones de implementación en las industrias creativas de países emergentes Kepes, V.8, N 7 págs. 159–169
10. Gostkowska-Drzewicka, M. (2016). Crowdfunding jako źródło finansowania inwestycji wnieruchomości, Finanse, Rynki Finansowe. Ubezpieczenia, No 1/2016(79), 62–65.
11. Hainz C, Kleimeier S (2012) Political risk, project finance, and the participation of development banks in syndicated lending. J Financ Intermed 21:287–314.
12. Henisz WJ (2014) Corporate diplomacy: building reputations and relationships with external stakeholders. Greenleaf Publishing, Sheffield; Kensinger and Martin 1988.
13. Here are five policies to help solve the global housing crisis URL: https://www.weforum. org/agenda/2022/03/how-to-solve-the-global-housing-crisis/
14. Housing Finance URL: https://www.worldbank.org/en/topic/financialsector/brief/ housing-finance
15. Housing Finance in South Eastern Europe: Materials by the seminar organized by Council of Europe on housing finance for the South East Europe Housing Network on Housing Finance. URL: http://pdc.ceu.hu/archive/00005330/01/Compara tive_Studies_Housing_Finance_in_ SEE.pdf (15.03.2017)
16. Howe J. (2009) Crowdsourcing: Why the Power of the Crowd is Driving the Future of Business [Book Review]. New York, NY: Crown Business https://www.researchgate.net/publication/ 280205170_Crowdsourcing_Why_the_Power_of_the_Crowd_is_Driving_the_Future_ of_Business_Book_Review_2009_Jeff_Howe_New_York_NY_Crown_Business.
17. John TA, John K (1991) Optimality of project financing: theory and empirical implications in finance and accounting. Rev Quant Finance Account 1:51–74
18. Lehner O.M. (2013). Crowdfunding social ventures: A model and research agenda. Ventur. Cap. 15, 289–311 URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2102525
19. Mollick, E. (2014) The dynamics of crowdfunding: An exploratory study. J. of business venturing. 2014. Vol. 29, № 1. P. 1–16.
20. Mortgages in the USA. URL: http://www.emigrate2.co.uk/ emigrate-to/emigrate-to-usa/ mortgages-inamerica/; Housing Finance in South Eastern Europe: Materials by the seminar organized by Council of Europe on housing finance for the South East Europe Housing Network on Housing Finance. URL: http://pdc.ceu.hu/archive/00005330/01/Compara tive_Studies_ Housing_Finance_in_SEE.pdf (15.03.2017)
21. Schweizer, D., Zhou, T. (2016). Do Principles Pay in Real Estate Crowdfunding? Do Principles Pay in Real Estate Crowdfunding? Journalof Portfolio Management, Vol. 43, No. 6, 2017. URL: https://papers.ssrn.com/sol3/papers2.cfm?abstract_id=2846892.
22. Schwienbacher A. (2010) Crowdfunding of small entrepreneurial ventures / A. Schwienbacher, B. Larralde // The Oxford Handbook of Entrepreneurial Finance / ed. D. J. Cumming. Oxford, Oxford University Press, 2010.
23. Subramanian KV, Tung F (2016) Law and project finance. J FinancI Intermed 25:154–177.
24. Vogel, J.H., Moll, B.S. (2014). Crowdfunding for real Estate. The Real Estate Finance Journal, Summer/Fall, p. 11. URL: https://faculty.tuck.dartmouth.edu/images/uploads/faculty/ john-vogel/crowdfunding_real_estate.pdf

Abstract views: 61
PDF Downloads: 39
Published
2023-09-01
How to Cite
Gottmann, W. (2023). INVESTMENTS IN HOUSING CONSTRUCTION: FEATURES AND MODERN TRENDS. Scientific Journal of Polonia University, 58(3), 235-242. https://doi.org/10.23856/5833