Rebalancing Tools for Comprehensive Real Estate Management: Modeling the Demand Function for Mortgage Buyers

The problem of real estate management in the growing environment of electronic and smart investment and sales tools is becoming increasingly important in matters of rebalancing the value of property and calculating the risks arising from implementing the mortgage loan agreement. This study’s purpose...

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Main Authors: Tsvetkova Liudmila, Orlaniuk-Malitskaia Larisa, Khuzhamov Leonid, Ermolaeva Alexandra
Format: Article
Language:English
Published: Sciendo 2024-12-01
Series:Studies in Business and Economics
Subjects:
Online Access:https://doi.org/10.2478/sbe-2024-0041
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author Tsvetkova Liudmila
Orlaniuk-Malitskaia Larisa
Khuzhamov Leonid
Ermolaeva Alexandra
author_facet Tsvetkova Liudmila
Orlaniuk-Malitskaia Larisa
Khuzhamov Leonid
Ermolaeva Alexandra
author_sort Tsvetkova Liudmila
collection DOAJ
description The problem of real estate management in the growing environment of electronic and smart investment and sales tools is becoming increasingly important in matters of rebalancing the value of property and calculating the risks arising from implementing the mortgage loan agreement. This study’s purpose is to investigate the prospect of using a model for planning insurance portfolios with an account of the needs of consumers to insure the contract’s lifecycle in the face of rising uncertainty. The basis for the investigation was Kahneman and Tversky’s perspective theory. It allowed the unveiling of the difference between the need to fulfil obligations and the need to preserve wealth. The paper modelled and tested the utility hypothesis of homeownership as well as constructed a value function model for the analysis of insurance needs. To model the function’s expression and approximate the dynamics of the premium functions, the Approximation of One Variable Function tool was used. The assumption on the maximum growth in insurance premiums on equipment and furnishings for homes purchased with mortgages at 30-35% of the contract period was confirmed. It was proved that the utility of outstanding debt increases as the debt is paid.
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id doaj-art-19a6a7e9eb6649e99b7ef9c67de761b6
institution Kabale University
issn 2344-5416
language English
publishDate 2024-12-01
publisher Sciendo
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series Studies in Business and Economics
spelling doaj-art-19a6a7e9eb6649e99b7ef9c67de761b62025-02-02T15:49:06ZengSciendoStudies in Business and Economics2344-54162024-12-0119352910.2478/sbe-2024-0041Rebalancing Tools for Comprehensive Real Estate Management: Modeling the Demand Function for Mortgage BuyersTsvetkova Liudmila0Orlaniuk-Malitskaia Larisa1Khuzhamov Leonid2Ermolaeva Alexandra31MGIMO University, Moscow, Russian Federation2Department of Insurance and Social Economy, Financial University under the Government of the Russian Federation, Moscow, Russian Federation3Department of Insurance and Social Economy, Financial University under the Government of the Russian Federation, Moscow, Russian Federation4Department of Insurance and Social Economy, Financial University under the Government of the Russian Federation, Moscow, Russian FederationThe problem of real estate management in the growing environment of electronic and smart investment and sales tools is becoming increasingly important in matters of rebalancing the value of property and calculating the risks arising from implementing the mortgage loan agreement. This study’s purpose is to investigate the prospect of using a model for planning insurance portfolios with an account of the needs of consumers to insure the contract’s lifecycle in the face of rising uncertainty. The basis for the investigation was Kahneman and Tversky’s perspective theory. It allowed the unveiling of the difference between the need to fulfil obligations and the need to preserve wealth. The paper modelled and tested the utility hypothesis of homeownership as well as constructed a value function model for the analysis of insurance needs. To model the function’s expression and approximate the dynamics of the premium functions, the Approximation of One Variable Function tool was used. The assumption on the maximum growth in insurance premiums on equipment and furnishings for homes purchased with mortgages at 30-35% of the contract period was confirmed. It was proved that the utility of outstanding debt increases as the debt is paid.https://doi.org/10.2478/sbe-2024-0041mortgageinsurancehousehold financehome lendinglending model
spellingShingle Tsvetkova Liudmila
Orlaniuk-Malitskaia Larisa
Khuzhamov Leonid
Ermolaeva Alexandra
Rebalancing Tools for Comprehensive Real Estate Management: Modeling the Demand Function for Mortgage Buyers
Studies in Business and Economics
mortgage
insurance
household finance
home lending
lending model
title Rebalancing Tools for Comprehensive Real Estate Management: Modeling the Demand Function for Mortgage Buyers
title_full Rebalancing Tools for Comprehensive Real Estate Management: Modeling the Demand Function for Mortgage Buyers
title_fullStr Rebalancing Tools for Comprehensive Real Estate Management: Modeling the Demand Function for Mortgage Buyers
title_full_unstemmed Rebalancing Tools for Comprehensive Real Estate Management: Modeling the Demand Function for Mortgage Buyers
title_short Rebalancing Tools for Comprehensive Real Estate Management: Modeling the Demand Function for Mortgage Buyers
title_sort rebalancing tools for comprehensive real estate management modeling the demand function for mortgage buyers
topic mortgage
insurance
household finance
home lending
lending model
url https://doi.org/10.2478/sbe-2024-0041
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AT orlaniukmalitskaialarisa rebalancingtoolsforcomprehensiverealestatemanagementmodelingthedemandfunctionformortgagebuyers
AT khuzhamovleonid rebalancingtoolsforcomprehensiverealestatemanagementmodelingthedemandfunctionformortgagebuyers
AT ermolaevaalexandra rebalancingtoolsforcomprehensiverealestatemanagementmodelingthedemandfunctionformortgagebuyers