Housing Market Advantages And Disadvantages

As per Toussaint and Elsinga (2009) the differentiating factor between the old and new welfare based on housing asset is that earlier, home ownership was seen as a way to collect equity that could be used at the time of the most urgent need only. In the new scheme of things, home equity can be seen as a kind of financial resource which either needs to be increased or released as and when needed. The underlying problem with the traditional welfare based on housing asset is the reluctance of the home owners to use house as a welfare resource. At the same time in the new systems which turns equity into a way of lifestyle consumption there is little left in terms of housing asset when it is finally needed in the later part of life. A big issue is regarding the housing market. Welfare based on housing asset is based on the assumptions that the price of a house will increase at a faster pace than inflation and will continue to do so. However the housing markets of many countries have shown that the housing market is inevitably volatile. thus, many people reap the benefits or have to face the disadvantages which mostly depend on their timing of entry or exit from the housing market. Not only do the individuals face the consequences of this but the governments also have to face certain challenges. Take for example, the Government of Singapore, which enjoys a lot of political support because of the launch of their program of mass home ownerships (The public schemes here account for