Real Estate Project Investment Analysis And Risk Management

Real estate is a rare kind of resource, an important element of production (like land, factory buildings) and a basic means of livelihood (like residential buildings), it is a property that man attaches great importance and value to. In a market economy, real estate is a commodity, and can be a very good source of investment. With the development of economy, progress of society and increase in population, the demand for real estate shall be increased ever more day by day, but this by no means means that there are no risks involved. On the contrary, real estate is immovable, requires huge input and takes a longer return period, it is also greatly affected by state policies, all these features mean that investment in real estate involves enormous risks. Therefore, careful and detailed investment analysis and evaluation, formulation of practical risk prevention measures shall be arranged prior to investment in order to keep the investment risks within the known field, thus substantial return can be guaranteed, this paper is right center on this theme.In this paper, the author first makes an analysis of some of the policies affecting real estate and points out it in dealing with real estate the risks as a result of state policies shall have to be taken into consideration.The second chapter makes a theoretical introduction to investment in real estate, its features, affecting factors, methods used in analysis of real estate investment.From chapter 3 to chapter 5, the author makes a detailed introduction of the various aspects in analysis of real estate investment, e.g. analysis on investment environment, the uncertainties of real estate investment, risk analysis of real estate investment. With the above analysis, the basic thinking in dealing with actual problems can be obtained. Chapter 6 introduces investment appraisal in real estate and issues relating to policy-making in real estate investment, policy-making shall only be based on the previous studies, otherwise policy-making can go into a direction contrary to actual situations. Chapter 7 details feasibility study as an effective means to control the various risks in real estate investment, which plays a very important role in prevention of risks in real estate investment. In Chapter 8, investment analysis and risk controls are introduced with the example of Sunlight City in Huainan.