Research Of The Personal Investment Of Real Estate By Financing Based On The Theory Of The Real Options

In the moden ecnomic area ,real estate is not only a kind of material wealth,but also a kind of hypothesized capital.Personal investors always invest real estate by financing for the requirements of living or speculation, facing the risk of the price alteration .And the investments for both of the tow requirements also effect the price alteration of real estate. So the research of the personal investment of real estate is important for both the personal investment decision-making and the macro-control.But it has been neglected for long time.This paper is different from the other domestic and foreign papers . It concerns the personal real estate investment decision-making by financing,including when to turn the tenancy to buy and get the maximal curtail expenditures,whether to speculate so as to get the profits. It introduces the real options theory into the personal real estate investment decision-making, builds up and solves tow real options models for the tow kinds of real estate investment and analyses the solutions.Its conclusions such as:the price turnning the tenancy to buy and pulsating rate,expected yield,rate,lending rate and maintenance cost are negative nonlinear correlated,and rent is positively nonlinear correlated;the critical value of price to speculate and rent,pulsating rate,tax rate and expected yield are positively nonlinear correlated,and maintenance cost,rate,lending rate are negative nonlinear correlated.In the end , the numerical value results are given and ecnomic and policy significance are analyzed in this paper.