| dc.description.abstract | In recent years, housing prices have been rising rapidly, however, due to the stagnation of raising wages, it is difficult to buy a house room while the declining of disposable income for individual families. To curbing the housing prices, the government has introduced many measures such as luxury tax and the combination between land and housing prices. Although the housing prices tend to decline, however, there are still in the high-end region and are unable to be affordable for many younger generations.
Under the situation of higher housing prices, people can buy homes through the law courts to get a cheaper house. However, the purchase of foreclosures involves many risks such as the inability to look inside the house for the situation or pattern. Since the winning bid will be paid in full within seven days and the court will have no guarantee of deficiencies, the purchase of squatters will only be self-incriminating and unable to claim compensation. Theoretically, due to the potential risks, there will be risk premiums for the trading. Intuitively, it is definitely cheaper than the market price to buy a house. But, in practice, the observation between the two markets is a topic to be worthy of discussion.
This study is trying to verify that housing prices through the law court whether must be cheaper than the market prices or not. Our study collected the data from the Taoyuan District Court Law House from November 11, 2017 to February 28, 2018. During the period, a total of 100 items were photographed. The photographed items were submitted to the local government office to obtain the detailed building materials. Then, this research compared those trading with the items of the real estate price registration platform of the Ministry of the Interior one by one. There were 33 matching samples after screening.
A comparison of 33 samples of forensic real estate with the items registered in the real estate trading market prices, our results show that the average unit price for the 33 auctions is 16.03% cheaper than the market prices. Among those trading items, 29 of which are cheaper than the market prices, and the other 4 are not. Overall, we can infer that the purchases of the foreclosure form the law court auction will be cheaper than the housing market, but not all every piece of the auction items. | en_US |