Study On Real Estate Loan Project Investment Appraisal System

With the smooth development of national macro economy, the real estate industry has flourished with a great leap. However, there are recently some unfavorable signals. Owing to the simple financing channel in real estate industry, the bank capital has taken up 70% of all the real estate capital chain, which results in great pressure on the development of real estate project in the case of tight money in the bank. The increasing real estate bubbles are very likely to have an impact o n the financial system and economy, while the lack of credit system will hinder the prevention and control of the risk on house loan. The "File 121" and "File 18" issued respectively by the Central Bank and State Council have proposed high requirement on the bank management of credit business in real estate. However, the simpleness, life cycle and conditions-binding featured by real estate project have posed huge challenges to the assessment and appraisal on credit projects. The old appraisal means and ways on enterprises loans cannot meet the demands of project management changes. The credit business, as the profit source for commercial bank, the one in real estate project in particular, is in great need of establishment of a brand new appraisal system, which formulates effective appraisal and control on the issues of possible profit and risk during the entire life cycle of the project.On how to address the problem of "asymmetrical information" occurred in the project implement process on the part of the real estate loan applicant, this paper proposes the means of project milestone, by which the working structures can be analyzed during the project implement process, aiming at realizing the management of bank or financial institution on the project and ensuring the control on the real estate development risks and guarantee of the profit.There are two objectives of constituting index system of the real estate loan project. One is to appraise the real estate loan project, while the other one is to improve the control capacity of commercial banks on the project.On the basis of comprehensive analysis on the research results home and abroad, guided by theories on engineer project management and invest management, this paper has made the following research on the appraisal system of real estate loan project.(1) The aspect of risk inner-control on the part of commercial banks has been explored from the perspectives of organization, management and techniques.(2) This paper has made detailed analysis and research on the entire process of life cycle of real estate development as well as the capital current in real estate investment, and proposed the core system of project management of real estate development.(3) Initial exploration has been made into enterprises and project appraisal and the index system has been put forward.