Chengdu-family Real Estate Market And Their Personal Property Investment Analysis

As an important branch of the capital market, the real estate market has notonly promoted the national economy, but also provided opportunities forindividual investors to gain profits.The real estate market in Chengdu is also developing steadily. Thesmall-sized residential properties are widely favored by individual investors dueto their relatively low total prices.In practice, however, individual investment on the small-sized residentialproperties often rests on the investor's personal experience or intuition, theinvestment will become more and more risky, while the return on investment willdecrease step by step. Meanwhile its rate of return will gradually average.Therefore the individual investor's decision-making should also be a scientificprocess.To lower the risk and elevate the return on investment, one should first of allhave a complete and profound understanding of the small-sized residentialproperty market, which requires a thorough analysis of the market's formation,development, its status quo, the characteristics of the current supply and demand,mechanism that affects the change of supply and demand, etc, so as to provide asaccurate a data-input as possible for the DCF(discounted cash flow).It is not enough to study the small-sized residential property market only.Closely related to the source of return on investment are also the developments ofthe city's housing tenant market and its second-hand residential market, whichhave direct effects upon sales or leasing investment. Relying on market analysis as its information base, the fulfillment ofdecision-making also calls for processing and coordinating of the marketinformation in scientific ways. Based on market analysis, DCF provideshypotheses as accurate as possible for the capital item. On the basis of thehypotheses in favor of the investors, DCF educes the information needed by theinvestors: the net present value, the internal rate of return, etc, providing thedecision-makers with immediate data. As a result, individual investors can investless blindly, and their understanding of the risk and rewards of their investmentcan be more accurate and scientific.