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Motivations for Equity Borrowing

A Welfare-switching Effect

Dados Bibliográficos

ID10864667
AutoresGraeme A Wood (0000-0002-1465-3016, RMIT Europe, autor correspondente), Gavin Wood (0000-0001-7187-2197), Sharon Parkinson (0000-0001-9470-6239, RMIT Europe), Beverley A Searle (0000-0003-4319-432X), Beverley Searle, Susan J Smith (0000-0001-7705-2077, University of Cambridge)
Ano2013
Volume50
Fascículo12
Páginas2588-2607
Data de publicação2013-09-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoUrban Studies (JOURNAL)
Identificadores do periódicoISSN: 0042-0980 • E-ISSN: 1360-063X
EditoraSAGE Publications (PUBLISHER • US)
DOI10.1177/0042098013477706
OpenAlexW2019130547
IdiomaEN
Citações recebidas28
Referências citadas26

During the early 2000s, mortgage market innovation together with home price appreciation increased the scope for mortgage equity withdrawal. From a macroeconomic perspective, this proved to be an important transmission mechanism for the wealth (particularly collateral) effects of housing. Microeconomic accounts of equity borrowing are less well developed, since standard models of savings and consumption rarely take housing wealth into account. This paper, however, builds on a small but growing literature assigning a precautionary savings role to consumption from housing wealth. The analysis uses panel data sourced from Britain and Australia to model households’ motivations for equity borrowing. Key among these motivations are pressing, uninsurable, ostensibly short-term, spending needs. In these contexts, it is proposed that equity borrowing assumes a welfare-switching role, substituting privately owned housing wealth for collectively funded safety-nets

Collateral · Consumption (sociology · Economics · Equity (law · Equity risk · Home equity · Intergenerational equity · Labour economics · Market economy · Monetary economics · Precautionary savings · Private equity · Public economics · Welfare · Finance · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism

  • Residential mobility and mental health

    Open Access•Graeme A Wood, W A V Clark et al.•SSM - Population Health•2022

  • The impact of negative gearing on the investment decisions of housing investors

    Open Access•Mustapha Bangura, Chia‐lin Lee•Journal of Housing and the Built…•2023

  • From Housing Wealth to Mortgage Debt

    Open Access•Stuart Lowe, Stuart G Lowe et al.•Social Policy and Society•2011

  • Why Not Cash Out Home Equity? Reflections on the Finnish Case

    Päivi Naumanen, Hannu Ruonavaara•Housing Theory and Society•2015

  • The Edges of Owner-Occupation versus Rentier Capitalism

    Open Access•Susan J Smith, N T Khuong Truong•Housing Theory and Society•2025

  • Living in Assets Without Limits

    Open Access•Marja Elsinga•Housing Theory and Society•2017

  • What has debt got to do with it? The Valuation of Homeownership in the Era of Financialization

    Christian Poppe, Sharon Collard et al.•Housing Theory and Society•2015

  • Explaining the Link between Housing and Health

    Susan J Smith•Housing Theory and Society•2012

  • Debted Objects

    Nicole Cook, Susan J Smith et al.•Housing Theory and Society•2013

  • Investor Subjectivities in Melbourne’s High Cost Housing Market

    Tamlin Gorter, Keith Jacobs•Housing Theory and Society•2020

  • Centring Housing in Political Economy

    Manuel B Aalbers, Brett Christophers•Housing Theory and Society•2014

  • Round the Houses

    Johnna Montgomerie, Mirjam Büdenbender•New Political Economy•2014

  • Re-thinking residential mobility

    Open Access•Rory Coulter, Maarten Van Ham et al.•Progress in Human Geography•2015

  • Unlocking housing wealth through mortgage debt

    Open Access•Rachel Ong, Christopher Phelps•Housing Studies•2024

  • Acquisition capital

    Open Access•Lindsay B Flynn, Sarah Kostecki•Housing Studies•2024

  • Simulating trends in housing wealth inequality in post-socialist Czech society

    M Lux, P Sunega et al.•Housing Studies•2021

  • Kemeny revisited

    Megan Nethercote•Housing Studies•2019

  • The Social Value of Housing in Straitened Times

    Ed Ferrari•Housing Studies•2015

  • Channels from Housing Wealth to Consumption

    Rachel Ong, Sharon Parkinson et al.•Housing Studies•2013

  • Housing as Asset‐Based Welfare in Australia

    Open Access•Graeme A Wood, Gavin A Wood et al.•Australian Journal of Social Issues•2026

  • Intergenerational Inequality? Labour, Capital, and Housing Through the Ages

    Open Access•Brett Christophers•Antipode•2018

  • The financialisation of housing and the rise of the investor-activist

    Open Access•Nicole Cook, Kristian Ruming•Urban Studies•2021

  • Housing wealth, mortgages and Australians’ labour force participation in later life

    Open Access•Rachel Ong, Graeme A Wood et al.•Urban Studies•2022

  • What do housing wealth and tenure have to do with it? Changes in wellbeing of men and women after divorce using Australian panel data

    Open Access•Selina André, Stéfanie André et al.•Social Science Research•2019

  • Housing and economic inequality in the long run

    Open Access•Susan J Smith, W A V Clark et al.•Economy and Society•2022

  • The dangers of borrowing in the age of financialization

    Open Access•Christian Poppe, Randi Lavik et al.•Acta Sociologica•2016

  • Wellbeing at the edges of ownership

    Open Access•Susan J Smith, Melek Cigdem et al.•Environment and Planning A…•2017

  • Rethinking job loss in an age of assetisation

    Open Access•Teresa Barnes•Environment and Planning A…•2024

  • House Prices, Home Equity–Based Borrowing, and the US Household Leverage Crisis

    Atif Mian, Amir Sufi•American Economic Review•2011

  • The Tanner Lectures on Human Values

    Eric Ashby, Amartya Sen et al.•The Tanner Lectures on Human Values•2024

  • Unemployment Risk and Precautionary Wealth

    Christopher D Carroll, Karen E Dynan et al.•The Review of Economics and…•2003

  • Home ownership and asset-based welfare

    Open Access•John Doling, Richard Ronald•Journal of Housing and the Built…•2010

  • From Housing Wealth to Mortgage Debt

    Open Access•Stuart Lowe, Stuart G Lowe et al.•Social Policy and Society•2011

  • Dematerialising Money? Observations on the Flow of Wealth from Housing to Other Things

    Susan J Smith, Beverley A Searle•Housing Studies•2008

  • The Taxation of Australian Landlords

    Open Access•Graeme A Wood, Gavin A Wood et al.•Urban Studies•2003

  • Who Withdraws Housing Equity and Why

    Open Access•ANDREW BENITO•Economica•2009

  • Owner-Occupation

    Open Access•Susan J Smith•Environment and Planning A…•2008

  • Rethinking the Risks of Home Ownership

    Open Access•Susan J Smith, Beverley A Searle et al.•Journal of Social Policy•2009

Obras citantes distintas28
Citações por ano1,87
Intervalo de citações2011 - 2026 (16)
Velocidade de citaçãocurrent
Altamente citadoNão
Tipos de citaçãoNeutras: 28
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