The purpose of this paper is to highlight the relation between the loan-to-value (LTV) ratio and the price-rent (PR) ratio. The paper intends to relate the PR-ratio to housing return and the potential for a leverage gain in housing investments by considering the funding structure of housing investments.,Combining a PR-ratio approach with the housing return in the case of mortgage-financed housing, as presented by Borgersen and Greibrokk (2012), this paper relates LTV to the PR-ratio.,When formalising the relationship between leverage and housing return, as given by Muellbauer and Murphy (1997), the paper finds the effect of a higher LTV on the user cost of housing as the net effect of a higher borrowing cost and the associated leverage gain. The latter depends on the relationship between house price growth and the mortgage rate and, because the leverage gain has an ambiguous effect on the user cost of housing, the relation between the LTV-ratio and the PR-ratio is context-specific.,The paper aims to contribute to the literature on PR ratios in two ways. First, by explicitly including the LTV-ratio in the user cost of mortgage financed housing and, correspondingly, in the PR-ratio derived from the user cost. Second, by including the funding structure of housing investments the expression for the capital gain, which often is discussed in the PR-ratio literature, is related to the funding structure and includes both a price gain and a leverage gain.

中文翻译：

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贷款价值与价格租金比

本文的目的是强调贷款与价值（LTV）比率与价格-租金（PR）比率之间的关系。本文旨在通过考虑住房投资的资金结构，将PR比率与住房收益和潜在的杠杆比率收益相关联。对于抵押贷款住房，将PR比率方法与住房收益结合起来（由Borgersen和Greibrokk（2012）提出），本文将LTV与PR比率相关。当正式确定杠杆与住房收益之间的关系时，如Muellbauer和Murphy（1997）给出的，本文发现较高的影响是LTV将住房的用户成本作为较高借贷成本和相关杠杆收益的净效应。后者取决于房价增长与抵押贷款率之间的关系，并且 由于杠杆收益对住房的用户成本产生不明确的影响，因此LTV比率与PR比率之间的关系是特定于上下文的。本文旨在以两种方式为有关PR比率的文献做出贡献。首先，通过将LTV比率明确包括在抵押贷款住房的用户费用中，并相应地包括在从用户费用中得出的PR比率中。其次，通过包括住房投资的融资结构，经常在PR比率文献中讨论的资本收益表达与融资结构有关，包括价格收益和杠杆收益。通过将LTV比率明确包括在抵押贷款住房的用户费用中，并相应地包括在从用户费用中得出的PR比率中。其次，通过包括住房投资的融资结构，经常在PR比率文献中讨论的资本收益表达与融资结构有关，包括价格收益和杠杆收益。通过将LTV比率明确包括在抵押贷款住房的用户费用中，并相应地包括在从用户费用中得出的PR比率中。其次，通过包括住房投资的融资结构，经常在PR比率文献中讨论的资本收益表达与融资结构有关，包括价格收益和杠杆收益。