Economic Evaluation And Risk Analyzing Of The Investment On TS House-Garden Project

Since the reform and opening-up of our country , real estate has experienced high-speed development and has been the pillar industry of our national economy . It has also given impetus to our national economy and resulted in the continuous and high speed development. Real estate is characterized by capital intensity , high risk and high return . Economic evaluation and risk analyzing have critic impact on the success of real estate project development. Of course, there are some real estate agents who have applied economic evaluation but lack the knowledge of project risk in housing development. This has led to a large number of idle houses and idle-lying funds and finally, real estate investment can't bring expected profits. I have been engaging in the management of house-building for a long time and greatly interested in the house development project. From the beginning of TS House-Garden hatching, I have been a member in the planning team, mainly in charge of the economic evaluation and risk analyzing about the project.The paper has calculated relevant financial indices. The before tax IRR is 21%, which is higher than the standard rate 15%. The capital outlay can be recouped in 3.52 years, which proves a good financial results. So, the project is feasible in finance. Combining the project risk management theories and the situations, the paper thoroughly analyzed TS House-Garden for its market risk, finance risk and operating management risk. According to the analyses, the paper put forward control and prevention measures to deal with the risks that TS House-Garden may face.Under the project risk management theory, the paper systematically and thoroughly analyzed the risks that TS House-Garden may have. After the economic evaluation and risk analyses about TS, the paper gives some basic measures which can be useful in risk control and prevention in real estate development. This is the innovation of the paper, and I think it's helpful for the house agents to foster an idea of investment risk. Also ,the basic measures may help them to apply relevant theories and methods to the investment risk analyses to find ways which can minimize the risk and result in the expected investment return.