ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 10 (4), pp. 001-008, April, 2016. © International Scholars Journals
Full Length Research Paper
A new housing finance model for the base of the pyramid: The case of Turkey
Sudi Apak1 and Suleyman Gokhan Gunay2*
1Department of Business Administration, Faculty of Economics and Administrative Sciences, Beykent University, Hadim Koru Yolu, Ayazaga Campus, 34396, Sisli-Istanbul, Turkey.
2Department of Business Administration, Faculty of Economics and Administrative Sciences, Trakya University, Balkan Campus, Edirne, Turkey.
Accepted 16 January, 2016
Abstract
There is no solid housing finance model that will solve the shelter needs of low-income household groups who do not have adequate capital to buy houses in developing countries and work properly during an economic crisis. To this end, the purpose of this paper is to propose a new housing finance model that will function even during a financial or an economic crisis for the base of the pyramid (low-income households) in developing countries. A scenario analysis is conducted based on the current inflation and interest rates in Turkey in order to test the housing finance model. It is found in the simulations that the model works properly for low-income households in Turkey during a financial or an economic crisis.
Key words: Mortgage, housing finance, low-income households, economic crisis, financial risks.