房地产投资理念.pptx

Module 4 Investment concepts 2017-3-2 Overview ? Market Segmentation ? Why put money in property market ? Nature of investment – passive e ? Leverage ? Feature of worthy investment ? Property, shares, or bonds ? ? Property vs stock ? Wealth polarization and property investment ? More advantages of property investment 2017-3-2 Market Segmentation Ordinary employees Business people Self – employed Investors Four groups 2017-3-2 Why put money in property market Nature of investment – passive e ? Definition - an e received on a regular basis, with little effort required to maintain it ? Major sources ? Royalties from publications or intellectual properties ? Property and rental e (accessible to four groups) ? Dividend from securities ? Pensions 2017-3-2 ? 70% senior citizens rely on less than $300/week e ? 80% receive state – provided pension only ? Only one self – living property However ……? More demanding rules on pension eligibility ? Strict e test ? Age increased from 65 to 70 What should we do? Without passive e, how can we live a decent retirement life? 2017-3-2 Why put money in property market Leverage ? Definition ? Techniques multiplying gains and losses ?B uying more of an asset by using borrowed funds, in belief of appreciation will go beyond the borrowing cost ? High risk level with wrong investment ?A n investor who buys a stock on 50% margin will lose 40% of his money if the stock declines by 20% 2017-3-2 Why put money in property market Features of worthy investments Worthy investment Appreciation potential Stable e Tax benefits Low risk Self – controlling 2017-3-2 Why put money in property market Property, shares, or bonds? 2017-3-2 Why put money in property market Property vs Stock Property Stock Lower volatility in price (recall the picture in first module) Higher volatility in price Lower level of uncertainty Higher level of uncertainty – all companies are possible to bankrupt Lower perceived risk by loan provi