A comparison research between the rate of returns of housing investment by Superficies land and Ownership land
|關鍵字:||不動產投資報酬率;地上權;Rate of Return on Fixed Assets;Superficies|
In Taiwan, a large amount of people live on narrow parts of land which are lots of high mountains and not many fields or flat lands. It has been harder to find reasonably priced land in city, and over the years there has been a large unexpected incline in prices. However, because of the expensive land costs, in order to reduce the value of land and achieve the landowner’s requirements, the law (superficies on land) needs to be developed to stop the fast rising prices. In government policy, more public land is only rented. In the landowner point of view, land is very precious. They don’t worry about depreciation, as land costs will rise every year. Land prices would be set by the law to protect the landowner; this will prevent anyone to snatch the ownership from landowner.Most landowners will only offer land for sale if it can be sold for a reasonable price. If they can’t, they will not sell and just put the land aside. The landowner should either be forced to use the land or sell if this is the case. If the landowner sells he can earn regular rental revenue every year when the land set up by surface right. After the lease is expired, the landowner has to pay to house owner according to the prices of house or he can free to get the land or the property on land back. So, both landowner and investor will have a win-win situation. In the investor point of view, he can reduce the cost on the land if set up by superficies right. Moreover, investor can gain the profit of managing land during agreement period. If the revenue is enough to pay cost and interest, the yield of investment will be better then landowner’s. The study confers with the yield of investment on the house with surface right and compare with the house with ownership. In the finical aspect, it can be analyzed the yield of investment on houses with two different rights by discounted cash flow to calculate future value of annuity.