Prospects of using security mechanism in the process of rehabili-tation the building sphere in Ukraine

  • Authors

    • Iryna Krekoten
    • Lyudmyla SvÑ–stun
    • Yulia Khudolii
    2018-06-20
    https://doi.org/10.14419/ijet.v7i3.2.14406
  • banks, housing construction, construction companies, mortgage lending, refinancing.

  • Abstract

    In this article, securitization was investigated as one of the most important sources of financing for the construction of residential real estate in Ukraine. The main purpose of the article is to explore ways to refinance mortgage loans used in the world practice for the rehabilitation the building sphere in residential real estate and to identify ways of expanding and cheapening them. The authors have found that a depository financing model uses on the Ukrainian mortgage market has significantly reduced the possibilities for its development and makes the mortgage expensive. Also, the models of the European and American mortgage markets were compared, identified the advantages and disadvantages of each model. And the possibility of using these models in Ukraine was considered. The current state of the mortgage market in Ukraine was examined. In addition, the trend of mortgage market development in a pre-crisis and post-crisis period was demonstrated in this article. Finally, the following conclusion was drawn: in order to increase the availability of mortgage loans and to rehabilitation the construction sphere, it is necessary to introduce mechanisms for refinancing mortgage loans.

     

     

  • References

    1. [1] Kharabara, V. (2017). Analysis of mortgage lending in banks in Ukraine. Baltic Journal of Economic Studies, 3(3), 59-63. DOI: http://dx.doi.org/10.30525/2256-0742/2017-3-3-59-63.

      [2] Tiwari, P. and White, M. (2014). International Financial Innovation and Real Estate Market Performance. In Real Estate Finance in the New Economy (eds P. Tiwari and M. White). DOI: 10.1002/9781118836651.ch9.

      [3] Davis, G. F. (2010). Not just a mortgage crisis: How finance maimed society. Strategic Organization, 8(1), 75-82. DOI: 10.1177/1476127009355857.

      [4] Berliner, B., Quinones, A., & Bhattacharya, A. (2016-08-18). Mortgage Loans to Mortgage-Backed Securities. In The Handbook of Mortgage-Backed Securities: 7th Edition.: Oxford University Press. Retrieved 23 Mar. 2018, from http://www.oxfordscholarship.com/view/10.1093/acprof:oso/9780198785774.001.0001/acprof-9780198785774-chapter-1. DOI: 10.1093/acprof:oso/9780198785774.003.0001.

      [5] Aalbers, M. B. (2012). European Mortgage Markets Before and After the Financial Crisis. In Subprime Cities, M. B. Aalbers (Ed.). DOI: 10.1002/9781444347456.ch5.

      [6] WidÅ‚ak, M. and Åaszek, J. (2016). Milestones of Housing Finance in Poland. In Milestones in European Housing Finance (eds J. Lunde and C. Whitehead). DOI: 10.1002/9781118929421.ch17.

      [7] Real Estate Financing. (2015). Wealth Opportunities in Commercial Real Estate, 119–155. DOI: 10.1002/9781119202790.ch5.

      [8] Goloven, A., & Korneev, V. (2015). Improving the system of mortgage crediting of residential real estate in Ukraine. Baltic Journal of Economic Studies, 1(2), 33-39. DOI: http://dx.doi.org/10.30525/2256-0742/2015-1-2-33-39.

      [9] Lewin-Epstein N. & Semyonov M. (2016). Household debt in midlife and old age: A multinational study. International Journal of Comparative Sociology, Vol 57, Issue 3, pp. 151 – 172. DOI: 10.1177/0020715216653798.

      [10] Xu, Y. (2017). Mandatory savings, credit access and home ownership: The case of the housing provident fund. Urban Studies, 54(15), 3446-3463. DOI: 10.1177/0042098016676158.

      [11] Dyba, M., & Polishchuk, E. (2011). Development companies in the investment market of Ukraine (Developerski kompanii na investytsiinomu rynku Ukrainy: Monohrafiia). Kyiv: KNEU.

      [12] Svystun, L. (2013). Financiang schemes of development projects in the Ukrainian real estate market (Skhemy finansuvannia developerskykh proektiv na rynku nerukhomosti Ukrainy). Economics and Region (Ekonomika i rehion), 5(42), 139-148.

      [13] Zavora, T. (2013). Features of financing housing through the FFS (Osoblyvosti finansuvannia budivnytstva zhytla cherez FFB). Retrieved from http: //77.121.11.9/bitstream/PoltNTU/1042/1/ZAVORA_ тези_13.pdf.

      [14] Lyhova, O., & Maister, A. (2012, November/December). Mortgage lending in Ukraine: problems and prospects for development (Ipotechne kredytuvannia v Ukraini: problemy ta perspektyvy rozvytku). Efektyvna Ekonomika. Retrieved November 19, 2012, from http://www.economy.nayka.com.ua/?op=1&z=1560.

      [15] Svistun, L. & Dovgal Y. (2014). Mortgage lending in Ukraine: current problems and development factors: monogph. (Ipotechne kredytuvannia v Ukraini: suchasni problemy ta faktory rozvytku). Poltava: PoltNTU.

      [16] Castellani, D. (2018), Mortgage backed Securitization and SME Lending During the Financial and Economic Crisis: Evidence from the Italian Cooperative Banking System. Economic Notes, 47: 187-222. DOI: 10.1111/ecno.12096.

      [17] Mattarocci G. (2015) Asset Allocation Strategy and Market Return for Real Estate Institutional Investors. In: Mattarocci G., Pekdemir D. (eds) European Real Estate. Palgrave Macmillan, London. DOI: 10.1057/9781137436122_10.

      [18] Liow, K. H., Zhou, X., & Ye, Q. (2015). Correlation Dynamics and Determinants in International Securitized Real Estate Markets. Real Estate Economics, 43(3), 537–585. DOI: 10.1111/1540-6229.12088.

      [19] Noriko A. (2010). Financing through the system of securitization, targeting corporate real estate: theoretical findings best fit for euro-zone economies. In 17th Annual European Real Estate Society Conference. ERES: Conference. Milan, Italy, 2010. DOI: 10.15396/eres2010_013.

      [20] (2008) Asset Securitization. In: Asset Securitization im Gesundheitswesen. Gabler. DOI: 10.1007/978-3-8349-8040-3_2.

      [21] Kara A., Marques-Ibanez D. & Ongena S. (2016) Securitization and lending standards: Evidence from the European wholesale loan market, Journal of Financial Stability, Volume 26, Pages 107-127. DOI: 10.1016/j.jfs.2016.07.004.

      [22] Barlindhaug, R., & Nordahl, B. I. (2018). Developers’ price setting behaviour in urban residential redevelopment projects. Journal of European Real Estate Research, 00–00. DOI: 10.1108/jerer-03-2017-0014.

      [23] Sustainable social housing: The comparison of the Mexican funding program for housing solutions and building sustainability rating systems. Héctor Saldaña-Márquez a, José M. Gómez-Soberón b, Susana P. Arredondo-Rea c, Diana C. Gámez-García a, Ramón Corral-Higuera Building and Environment, Volume 133, April 2018, Pages 103-122 ttps://doi.org/10.1016/j.buildenv.2018.02.017.

      [24] Stoecker, O. (September 9, 2014). Covered Bond Models in Europe – Legal Conflict between Secured Bonds and Deposits Regarding Insolvency Remoteness and Bail-In. The Narodowy Bank Polski Workshop: Recent Trends in the Real Estate Market And its Analysis, 2013. Available at SSRN: https://ssrn.com/abstract=2841684 or http://dx.doi.org/10.2139/ssrn.2841684.

      [25] Moraru A., Kubas J., & Istuk I. (2016). To bond or not to bond? Covered bonds reforms in central and Eastern Europe. Low in Transition Journal, Pages 10-22.

  • Downloads

  • How to Cite

    Krekoten, I., SvÑ–stun, L., & Khudolii, Y. (2018). Prospects of using security mechanism in the process of rehabili-tation the building sphere in Ukraine. International Journal of Engineering & Technology, 7(3.2), 219-224. https://doi.org/10.14419/ijet.v7i3.2.14406

    Received date: 2018-06-20

    Accepted date: 2018-06-20

    Published date: 2018-06-20