Liquidity is a Major Disadvantage for Real Estate Investors.doc

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1、LiquidityisaMajorDisadvantageforRealEstateInvestorsRealestateisasortoftraditionaloutletforinvestment.Thecurrentrealestateindustryinchinaisjustattheageofaboy.Theexploitationofrealestateisanindustryofhighprofitwhichleadstotheinterestsofmanyinvestors.Thechara

2、ctersofrealestategreatlyaffectthedecisionsmadebyinvestors.¢ñ£®Introductionoftheinvestmentofrealestate¢±¡¡TheconceptofrealestateanditscharacterRealestatecanbedefinedingeneralizedwayornarrowway.Generally,realestatemeanssoilandthebuildingsonitwithitsinfrastru

3、cturesandnaturalresourcessuchaswater.Narrowly,realestatemeansthebuildingsonsoilandtherightsinvolvedbythem.Here,wewilltakeaboutrealestatenarrowlythatarepermittedbynationallawstobeinvestedbyindividuals.Thecharacterofrealestate:a)Expensiveb)Hardsegmentc)Canno

4、tbemovedd)Cannotbeaddede)Cannotbereplacedf)Maintenanceg)Canbeinvestedandconsumedatthesametime9¢²¡¡Thecharacterofinvestmentofrealestatea)Thedealingofinvestmentofrealestateiscombinedcloselywithrealestateb)Thelocationandaroundareaandindividualdifferenceofreal

5、estatedeterminethedifferenceofprofitandpricemadebygrade.c)Themaintenanceofrealestatedeterminesthecredibilityoftheinvestmentofrealestate.d)Largescaleofinvestmentandlongcycleofexploitation.Theslowturnoveroftheinvestmentofrealestateshouldbeconsidered.e)Theinv

6、estmentofrealestatekeepsaliveandbringsincrementwiththedevelopmentofsocietyandincreaseofpopulationandincreasingdemandofsoilwhichleadatrendofincreasingpriceofrealestate.¢³¡¡Theadvantageanddisadvantageofinvestmentofrealestate²Advantages:canbeusedpersonal

7、lyandbeinvested£»cangetprofitafteralongtime;canoffsetthelossofdevaluation;assecurityfortheloan.²Disadvantages:illliquidity;takesalotoftimeandenergytomanageafterbeingrated;needsalotoffund;atbigrisk.¢ò£®Lackingofliquidityisthemainproblemforinvestorsofre

8、alestate.¢±Thecharacterofrealestatedeterminesitsillliquidityespeciallyfortheliquidityoffound.¢²Thereason9Firstly,itiscausedbythehighcostofdealingofinvestment.Alargesumoffoundisneededintheinvestmentofrealestat