Chapter
Nov 18, 2014

Multi-Objective Decisions in Real Estate Financing

Publication: ICCREM 2014: Smart Construction and Management in the Context of New Technology

Abstract

Real estate financing is a distribution and consumption process which works through the circulation of money and credit channels. It includes funding, financing and related services. China's current real estate financing has many problems - especially in financing channels - which should be adopted by the characteristics of related real estate. In order to make more reasonable decisions in real estate financing, this article combines real estate financing with the risk -return model and the multi-objective decision. Real estate projects can estimate future risks and benefits more accurately using the risk-return model. Firstly, we should compare the risks with the benefits of these few items and then compare the ratio of the benefits and risks. By comparing the relative preference of investors, we can get the optimal solution. However, it is not easy to estimate real estate projects using the AHP. We build the judgment matrix to calculate the weight of each index and get the conclusion. Finally, we can get the project evaluation scores. With the scores, we can know whether the financing decision for a real estate project is good or not. We can make a more reasonable decision in real estate financing with these two methods.

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Go to ICCREM 2014
ICCREM 2014: Smart Construction and Management in the Context of New Technology
Pages: 1372 - 1378

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Published online: Nov 18, 2014

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Associate Professor, Department of Applied Economics, Harbin Institute of Technology, Harbin, China, 150001. E-mail: [email protected]
Zichen Wang [email protected]
Department of Applied Economics, Harbin Institute of Technology, Harbin, China, 150001. E-mail: [email protected]

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