The prevention and treatment of real estate investment risks are aimed at different types, different probabilities and different scales of risks, and take corresponding measures and methods to avoid real estate investment risks or minimize the risks in the real estate investment process.
- Investment diversification strategy
The decentralization of real estate investment is achieved through the decentralization of development structure and the purpose of reducing risks, Metal Coils generally including the dispersion of investment areas, the dispersion of investment time and joint investment. The decentralization of real estate investment is to diversify real estate investment into different regions, so as to avoid the impact of economic downturn investment in a particular region and achieve the goal of reducing risks. The time dispersion of real estate investment is to determine a reasonable investment interval, so as to avoid losses caused by market changes. For example, when the real estate leading indicators change significantly, such as economic growth rate, per capita income and reserves start to rise from the bottom of the cycle, the loan interest rate begins to decline from the peak, and the state’s transfer of land use rights starts to rise from the cycle trough, indicating the real estate industry. The cycle will enter the expansion phase, which should be the best time to invest, and you can concentrate on investing. Co-investment is also a common way of risk dispersion. Co-investment and development requires partners to jointly invest in real estate development, share benefits and share risks, fully mobilize the enthusiasm of all parties involved in the investment, and maximize their respective advantages to avoid risks. For example, in cooperation with financial departments and large consortia, they can use their capital advantages to eliminate real estate financing risks; with foreign alliances, they can introduce advanced technology and management experience, and they can also obtain preferential policies for real estate investment and development.