Real Estate Investment Decision Research

The real estate trade with high profit is springing up vigorously as the importantmainstay industry of the national economy, but the progress of the exploitation is acomprehensive work composed by a serial of complex works. With the change ofmacroscopical policy and the development of the real estate market, the investmentdecision work plays more and more important role in real estate enterprise.Aiming atthe investment decision, the paper starts with its meaning, characteristic and principleand systemically analyses its decisive aims, types, methods, characteristic.Then theGroup Fuzzy AHP method (GFAHP) is firstly introduced and the decisive model ofinvestment type is set up by this way. After this,various influencing factors on thelocation selection in real estate development were expounded in detail.It is pointed outthat the location selection is an issue of mixed object system.A matter-elementanalysis model of location selection was built with extensive-set theory. Based on theprinciple in economics that investment benefit decreased by degrees, connected withthe peculiarity of the real estate investment, the optimal scale decisive model is set up.After this, the risk in real estate enterprice is systematically analyzed and the way toavoid these risks is introduced whereafter. Using the Model of Capital Asset Pricing(CAPM), the paper analyses the issues of real estate portfolio and advises investor todevelop portfolio to reduce unsystematic risk.The risk decision theory model of realestate portfolio was built and the management process of portfolio investment wasstudied elementarily. Lastly the paper gives an example of an exploration project andall above models are demonstrated to verify their availability and practicality.