FINANCIAL AND CREDIT INSTRUMENTS FOR ENSURING EFFECTIVE FUNCTIONING OF THE RESIDENTIAL REAL ESTATE MARKET

Abstract

Abstract. Problems with financial and credit provision of the residential real estate market participants negatively affect the functioning of such a market and leads to a deterioration of the socio-economic environment, because the population is unable to satisfy their primary needs — housing needs. The results of our research showed that in the process of financial and credit instruments realization on the financial market there is a two-way process of transformation: on the one side, financial assets are transformed into financial liabilities for their issuers, on the other side, financial liabilities are transformed into financial assets in the form of rights of claim for buyers of financial products. It was found that under the usage of financial and credit instruments, the transformation takes place in the following directions: transformation of assets, transformation of risks, transformation of terms. The main essence of financial and credit instruments in the residential real estate market is that they allow to mediate operations during the transition of transactions under the process of investing in real estate, transform risks arising in the market, increase liquidity and turnover of real estate (from creation to consumption). Functions performed by financial and credit instruments in the residential real estate market are generalized, namely: redistributive and transformational, information-protective, regulatory, accumulative. By disclosing the essence of the concept of «financial and credit instruments for ensuring effective functioning of the residential real estate market» the following elements are taken into account: components of the essence (mediation of investment operations with real estate, establishing beneficial interaction between their participants, the presence of target orientation, transformation of assets, risks and terms), the role of financial and credit instruments in achieving the expected results from their application in the financial and credit mechanism of investment processes management in the residential real estate market, functions of financial and credit instruments. Keywords: financial and credit instruments, residential real estate market, transformation, financial assets, financial liabilities, functions of financial and credit instruments. JEL Classification G19 Formulas: 0; fig.: 2; tabl.: 0; bibl.: 15.