The Research On The Real Option In Real Estate Investment Decision

Since the outbreak of the financial crisis, the real estate market is not optimistic. At the beginning of2010, the state introduced a number of regulatory policy to curb the fast rising housing prices, promote the healthy and stable development of the real estate market. In2011the country is the increase of the real estate industry macro-control policies and measures, in effect, the real estate market speculation, investment demand gets effective keep within limits. Real estate enterprises face so difficult external environment, that they should carefully do a good job in project investment decision analysis. How to correctly calculate the value of the project, to the real estate enterprise is very important, therefore, the real options method is introduced to the real estate investment decision is a very important practical significance.This paper from the traditional real estate investment decision method proceed with, to the traditional investment methods are systematically summarized, and pointed out the limitation of the traditional investment decision methods. The real option into investment decision of real estate project, this paper mainly studies the two fork tree model and Black-Scholes model two option model, and the through specific example visually describes how to use the two model.The traditional investment decision method net present value method and the real option method of these two kinds of methods of Linyi LD company LBW project the specific case of investment analysis, by the analysis of real option method is superior to the traditional net present value method. The real options method considering the option value, for project analysis is more flexible, accurate, so, in real estate investment decision analysis should be more extensive use of the real option method, because of investment analysis method is not accurate, which caused the enterprise gives up some worthy of investment...