Research On Financial Risk Management Of Investment Property

With the economic development and the change of investment opinion, real estate held to earn rentals or for capital appreciation is being a tools people loving. However, most investors have no enough idea about the financial risk. They think real estates always appreciate, or at least preserve, but do not depreciate in value, which will give large potential risk to investment properties.The thesis stands for real estate owners and research on risk management of investment property from financial angle. At first, the exposition about the basic theory of real estate and investment property is a starting point. Then, based on the overall knowledge of financial risk of investment property, the thesis creates a measure frame for it using economic indicators, the ratio of unoccupied, and financial indicators, NPV added option theory and financial early-warning indicators. At last, the thesis introduces some effective control methods for getting risk-reward and avoiding financial crisis from rent revenue, working expense and financing structure.The innovation of the thesis has two. One is researching on risk management of investment property from financial angle. The other is creating a measure frame for financial risk of investment property based on economic indicators and financial indicators, especially, establishing financial early-warning system of investment property, which analyses the cause and tendency of financial risk and points out the direction for controlling financial risk of investment property.