On Real Estate Development And Financial Support

In daily life, people base themselves on things such as cloths, foods, house and moving. In China, who is developing fast today, gaining house from the company working in is not reality anymore. House become the most important difficult problem in people's life, and should be handled at first. Government and people focus on real estate gradually, because of it can solve people's house problem.Today, real estate has been developed as an industry in China. It also becomes as china economy's principal industry. Construction and consumption in real estate industry, especially house construction and house consumption, turn into new rising point in the country's economy. All of these can make it themselves without lot of money investment and risk guarantee. So, real estate and finance go closer and closer now. Some scholar even point out, that finance is the core of the real estate industry.Because real estate investment needs much more fund, and its scale is usually quit huge, finance is necessary to these development companies. To the personal house buyers, house is the main estate of the family, so, house loan is the necessary thing in family life. At the mean time, development of real estate also brings lots of business to banking, it growing up with the finance. Under the developed market economy, the real estate and the finance influence each other, affect each other and can not be parted.The real estate loan, public accumulation funds for urban housing, real estate trust, real estate insurance and real estate security are the major banking means in real estate industry.About 50%—60% people buy their own house for living at overseas, in some countries the rate is up to 80%. Behind the high rate of house buying is the regular finance system. House banking has been caught the steam engine and the speed up machine for the house industry. House banking also becomes the golden business in banking. House industry could not develop without bank's support, on the other hand, during supporting the house industry, banks made lots of progress itself.In our country, from the land purchase to commodity house sale, the finance appears in ever step of these matters. If the finance policies changed, real estate market would change at the same time. In 5—6 years, china's real estate industry developed fast, grew up fast, and prospered fast. It's all because of the innovations in the housing loan as well as in the finance. Every change of finance policy will cause many different questions, arguments and problems out from the society, the real estate market, the media, and the whole nation. In recent years, the most effective finance policies in real estate industry are the policy of interest rate, the reform of exchange rate, the reform of national owned commercial banks and the reform of equity share distribution.But in our national real estate financial system, the financial tools are quite simple, the banking market is very limited, the financial rules have lots of drawbacks. And the system also has the problems in less supervision, less banking products and less marketing price system. Because of these, the system of our real estate finance should be rebuilt at once. We should rebuild the financial policies, the financial market, the financial products, the price making system in financial market and the setup of financial supervision.In this paper, writer mainly introduce the ideas in the relationship and effect between real estate and finance, some financial products for real estate industry, overseas situations between real estate and finance, financial policies affecting the development of real estate industry, the problems in national real estate finance, and some suggestions on national real estate finance.