What is Real Estate Investment? (III)

28 Dec

High risk

Since real estate investment occupies more capital, the capital turnover period is longer, and the market is changing rapidly, so the risk factors of investment will also increase. Coupled with the low liquidity of real estate assets, it cannot be easily dismissed. Once the investment is wrong, the house is vacant, the funds cannot be recovered on time, and the enterprise will be passive, and even the debt burden will be heavy, leading to bankruptcy.galvanized steel pipes 

Environmental constraints

A building is a component of a city and is also immovable. Click Here For More Therefore, objectively requiring a unified planning and layout in a city. The functional division of the city, the density and height of the building, and the ecological environment of the city all constitute external constraints. Real estate investment must obey the requirements of urban planning, land planning, and ecological environment planning, and unify microeconomic benefits with macroeconomic and environmental benefits. Only in this way can we achieve good investment returns.

Low liquidity (poor visibility)

Real estate investment costs are high, unlike ordinary commodity trading, which can be easily completed in a short period of time. Real estate transactions usually take one month or more to complete; and once investors invest their money in real estate sales, their funds are difficult to Realized in the short term. Therefore, the liquidity and flexibility of real estate funds are low. Of course, real estate investment also has the advantage of being durable and valuable. Once the real estate commodity registers the property right in the real estate management department and obtains the corresponding property right certificate, it is legally recognized and protected, and its durable value-keeping performance is higher than other investment objects.

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