Ⅰ．Introduction of the investment of real estate
⒈ The concept of real estate and its character
Real estate can be defined in generalized way or narrow way. Generally, real estate means soil and the buildings on it with its infrastructures and natural resources such as water. Narrowly, real estate means the buildings on soil and the rights involved by them. Here, we will take about real estate narrowly that are permitted by national laws to be invested by individuals.
The character of real estate:
a) Expensive
b) Hard segment
c) Can not be moved
d) Can not be added
e) Can not be replaced
f) Maintenance
g) Can be invested and consumed at the same time
⒉ The character of investment of real estate
a) The dealing of investment of real estate is combined closely with real estate
b) The location and around area and individual difference of real estate determine the difference of profit and price made by grade.
c) The maintenance of real estate determines the credibility of the investment of real estate.
d) Large scale of investment and long cycle of exploitation. The slow turnover of the investment of real estate should be considered.
e) The investment of real estate keeps alive and brings increment with the development of society and increase of population and increasing demand of soil which lead a trend of increasing price of real estate.
⒊ The advantage and disadvantage of investment of real estate
² Advantages: can be used personally and be invested；can get profit after a long time; can offset the loss of devaluation; as security for the loan.
² Disadvantages: ill liquidity; takes a lot of time and energy to manage after being rated; needs a lot of fund; at big risk.
Ⅱ．Lacking of liquidity is the main problem for investors of real estate.
⒈ The character of real estate determines its ill liquidity especially for the liquidity of found.
⒉ The reason
Firstly, it is caused by the high cost of dealing of investment. A large sum of found is needed in the investment of real estate and can not become return in a short term. 2007-02-27 文章来自《中国免费论文网》财务分析论文频道 http://lunwen.52xoyo.com
