01885cas a2200253 a 4500 AALejournalIMF019132 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498302814 1018-5941 BD-DhAAL BD-DhAAL Andrle, Michal. Assessing House Prices with Prudential and Valuation Measures / Michal Andrle, Miroslav Plaail. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In this paper we provide tools for assessing the house prices and housing valuation. We develop two approaches: (i) borrowing capacity approach, and (ii) intrinsic value approach. The borrowing capacity of households, together with their down payment, implies how much housing they can attain. In the intrinsic value approach, property value is viewed as a discounted present value of adjusted net rental income. Our approach does not involve a complex econometric model and only widely available data are used. The proposed indicators can guide households, financial markets and macroprudential authorities in their understanding of house prices development. To illustrate the concepts, we analyze the housing prices in the Czech Republic and assess the degree of market over-and undervaluation. Mode of access: Internet Plaail, Miroslav. IMF Working Papers; Working Paper ; No. 2019/059 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/059/001.2019.issue-059-en.xml IMF e-Library