Study On The Evaluation System Of Real Estate Investment

S company as a large-scale comprehensive investment enterprise, when choosinginvestment projects, it considers not only the impact on benefits for business but alsofor society. Real estate investments need to consider the above two aspectssimultaneously. The development and construction of a real estate project may affecthundreds of related industry indicators, attract a wide range of investments, acceleratelarge consumption and solve the employment issues etc. and it boosts economicprogress through multiple ways. Real estate investment stands high risks due to itswide scale influences, large demands for funds and long payback periods. Therefore,solving the problem of how to control real estate investment risks and bring practicalbenefits for enterprise and society is an urgent need for S company.Firstly, this paper teases out the theoretical basis and development of investmentproject assessments and financial and non-financial metrics during the discussion ofcurrent foreign and domestic theoretical studies. Secondly, according to the main realestate investment approaches, this paper makes financial loan as a way of investmentevaluation system to be the research object. Then, it outlines the current situation of Scompany’s real estate investments and its assessment issues. Taking S invests in Qproject as case study, it deeply analyses existing problems of current investmentevaluation system and its effects. Last but not least, combining operationaldistinctions of small and medium-sized real estate enterprises, this paper highlightsthe characteristics of real estate development in different stages including landobtaining, project construction and project sales from the financial indicatorevaluations’ angle. It analyses specific financial indicators that are selected from thefinancial statements at all stages; and finally confirms3non-financial indicators:PEST, enterprise ability and legal protection from non-financial indicator evaluationsperspective and from studies on areas of enterprise abilities, legal environment,politics, economy and culture.Based on theoretical analysis, this paper dissects issues of investment evaluationsystem of S company through data analysis and case studies. Learning from themature performance appraisal theory, bring in combination between financial andnon-financial evaluations and between the motivation of guaranteeing investment benefits and result-oriented indicators. This paper sticks out features of real estatedevelopment, and specifically, comprehensively, systematically analyses real estateenterprise situation. Providing practical, utilized and reliable evaluation indicatorsystem for small and middle-sized real estate enterprise investments.