Analysis & Prevention Of Financial Risk During The Fast Development Of Real Estate

The development of the real estate cannot do without the financial support .The real-estate finance runs through every step of the real estate, such as development, sale etc. The sound development of the real-estate finance is the important guarantee of stability and development of real estate market. It is essential to take precautions against and control the financial risk of the real estate. That's not only the request of the development of real estate and real-estate finance, but also the stability and development of national economy. Especially in 2007, the break-out of the sub-prime mortgage crisis in the United States once again makes us realize the huge risk underlies the excessive expansion of the real estates. Therefore, to study and research the financial risk caused by the fast development of the real estate has dramatic realistic significance.Beginning with the concepts of the real estate and real-estate finance, then the relationship between the real estate and the finance and several main financial patterns by which the development of the real estate is supported are introduced. The mechanism of financial risk initiated by overheat of the real estate is analyzed in detail and some international classic cases of financial risk initiated by overheat of the real estate are given fully analyzed and the experience and lessons are clearly clarified. the paper mainly focuses on the real-estate finance market of China. The problems and risks existed in the present real-estate market are pointed out and some respondent countermeasures against the problems and risks are suggested. For example, strengthening and perfecting the legal environment,enhancing the financial innovation to broad the financing channel and optimizing and improving the market environment, etc. Lastly, the paper takes American sub-prime mortgage crisis as breakthrough point, making some thorough introspection on Mortgage-Backed Securitization in our country's financial innovation. Some proposals and advices for the financial innovation in present situation are suggested. It present a reference for the financial innovation.