2020
DOI: 10.13106/jafeb.2020.vol7.no8.033
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An Empirical Testing of a House Pricing Model in the Indian Market

Abstract: The main aim of the study is to test a house pricing model by combining hedonic and asset-based pricing models. An understanding of the relationship between house pricing and its return (the rental income) helps to establish houses as a significant asset class. The model tested the relationship between house pricing (dependent variable) and the house attributes (independent variables) derived from Freeman's framework of housing attributes. This study uses a large data-set of 1,899 sample of new, high-end house… Show more

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Cited by 6 publications
(5 citation statements)
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“…As mentioned, housing is a huge asset for every household. Housing is reported to provide an excellent risk-return trade-off and is a good alternative to stock and bond portfolios (Hoda et al, 2020). To get a house, consumers have to save for a fairly long time or have to borrow large amounts of money and therefore the burden of monthly interest payments is not easy for low-income households because housing is not only a place for people to live but also affects their morale, quality of life, and economic development (Nguyen & Do, 2020).…”
Section: Incomementioning
confidence: 99%
“…As mentioned, housing is a huge asset for every household. Housing is reported to provide an excellent risk-return trade-off and is a good alternative to stock and bond portfolios (Hoda et al, 2020). To get a house, consumers have to save for a fairly long time or have to borrow large amounts of money and therefore the burden of monthly interest payments is not easy for low-income households because housing is not only a place for people to live but also affects their morale, quality of life, and economic development (Nguyen & Do, 2020).…”
Section: Incomementioning
confidence: 99%
“…These applications will be helpful to increase the scope of rental houses in India. Without professional ventures on it, many properties presently are not sold but development of a perfect product can give the opportunity to the customers and buyers to make a good deal (Hoda, N. et al, 2020).…”
Section: Future Scopesmentioning
confidence: 99%
“…The notional value, F consists of zero-coupon bond B, with the maturity term of T periods being the basis of firm debt, according to the Black-Scholes-Merton approach. This capital-structure-based evaluation of contingent claims on firm performance under the risk-neutral measure implies that a firm defaults if its asset value is insufficient to meet the amount of debt owed to bondholders at maturity Hoda et al (2020). Conversely, if the "distance to default" is positive and the asset value of the firm exceeds the bankruptcy level, the call option held by equity holders on firm value has an intrinsic value (i.e., in addition to its time value until the maturity of debt) (Phuoc, 2018).…”
Section: Benefit Of Securitizationmentioning
confidence: 99%