A Study On The Investment Decision-making And Risk Prevention Of G Project

This article provides a comprehensive analysis and evaluation for the feasibility of real estate projects. It is an important research area to select the best project in the comprehensive evaluation of many real estate projects. The investment decision-making is the source of the total investment of a project. The cost of this phase only accounts for 0.5% -3% of the total investment, it can effectively improve the benefit of the investment. This article mainly studies the investment decision making of the real estate, the main factors which affect the investment decision-making. This paper also analyzes the ventures exiting in all stages of real estate projects, and explores the approaches to make the investment decisions on the real estate projects.Firstly, this thesis introduces some concepts and theories about the real estate investment and decision-making. Then, it mainly describes the principles, contents and processes about the investment decision-making. Based on the comprehensive analysis of the factors which can influence the real estate investment, this thesis tries to put forward some suggestions and countermeasures for the existing problems for the investment decisions in real estate projects.The total amount of investment of G Project would be 5.6 billion. According to the financial point of view, the project has a high rate of investment income, and a short payback period. The recovery period of its static investment is 8.6 years, and the recovery period of dynamic investment is 10 years. In other words, the project has a higher economic benefit.This project located in the heart of largest textile district, which is adjacent to Zhongshan University. The geographical position of the project is superior, with a variety of facilities supporting the daily life of people in this region. However, there are several same types of projects within the same region. Together with the traditional business model inherent in the markets, it makes the market more competitive. Besides, it will also affect the project's promotion in this region. Therefore, the project should enhance the risk management and prevention, and pay attention to development of the macroeconomic economy and the changes of the policies. With the opportunity to the transformation to the old facilities, the project should apply the preferential policies. On the other hand, we must fully understand supply and demand situation of the market, and determine the project's planning orientation. Besides, it will be also necessary to select the appropriate partner with experience and buy certain property insurance. Last but not least, we still need to control the financial risk.