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A Study on the Effect of the National Housing Fund to Support Private Investment Dorm’s Operating

  • Korea Real Estate Review
  • 2013, 23(2), pp.209-230
  • Publisher : korea real estate research institute
  • Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate

이중식 1 Seon-Jong Yoo 1

1건국대학교

Accredited

ABSTRACT

The study shows how existing private-invested dormitories are reversely discriminated by not being able to be subsidized from National Housing Fund by using Discount Cash Flow Analysis depending on structures of Special Purpose Company. The results show that subsidies given by NHF can unfairly advantage its beneficiaries when it comes to dormitory management. Hence, it may undermine profitability of the non- subsidized SPCs. In this paper, the study examines the gap in boarding expenses between NHF subsidized and non-subsidized private-invested dormitories. It also analyzes the differences in overall payments and periods of amortization. It finds that interest rate of amortization is one of the key factors affecting boarding expenses and amount of overall payments.

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