Study On Hua Fu Homes Real Estate Investment Risk Evaluation

As China's socialist marketing economic system continuously improved, the real estate industry has gradually become the national economy's pillar industry and new economic growth point. However, as a special industry, large investment, long construction period, slow cash flow, and the characteristics of poor liquidity, involving other social, economic and environmental factors, the investment process is a future unknown forecast. All these factors decide the high-risk nature of the real estate industry. As a matter of fact, risk management has become the guarantee of healthy development of the real estate industry.This thesis based on the risk management theory of real estate investment, while concerning the risk management analysis of the real estate development projects of Suzhou Hua Fu Group Limited. The aim of this thesis is to investigate a more practical real estate investment risk management system for the real estate development companies so that investors can choose their own investment decisions and bear the risks in the projects of the real estate development companies, as well as providing a valuable base for decision making of real estate investment.The thesis starts with features and status of the real estate investment, making an in-depth study of some of the more mature theories and methods of real estate investment risk management both domestic and foreign, combined with the characteristics of the real estate industry itself, and discussed the meaning of real estate investment. Second, the concept and the two basic characteristics of a real estate investment risks, together with the relationship between the two have been laid out. The whole process is divided into investment decision-making stage, land-acquisition stage, the project construction stage, and Land Management stage, risk factors of each stage were analyzed respectively. Third, by making use of objective and subjective analysis, sensitivity analysis, probability analysis and break-even analysis of a market survey, the thesis made an evaluation on the unknown factors in different stage of the investment risk management of the real estate development companies. Then on the basis of the analysis of the internal and external environment and its own characteristics of the real estate projects of Suzhou Yi He Group Limited, kite with, by using risk identification and risk assessment methods, the thesis has not only made important risk estimation and evaluations but also put forward more detailed risk management measures in the above mentioned four stages.