Category: Money tips Release Date: 2006-12-06
In recent years, home prices in major cities nationwide turns up, doubling multiples are staggering. Liang Jian government departments so frequent, repeated braking, but the housing market is still in Ngau Tau did not fall. At the same time, despite the care of a Canadian regulatory authorities, the stock market or a bear market in the twists and turns, although improved since two years ago, is still not yet reached a high point, not to talk about five years ago, the high point of return. In view of the persistence of inflation, the currency appreciation trend, we will inevitably need to invest in stocks and real estate. In this context, in the end, investment real estate or investing in stocks, especially real estate stocks? We were just both initiated an analysis of risk-reward characteristics.
First, look at real estate and investment real estate equity investment potential benefits, which is more a game of chess a reasonable valuation relative to the price upside. According to incomplete statistics, A-share market listed companies in the mainstream of real estate for 15-20 times earnings, because of its net profit in the foreseeable future, a growth rate of 20-30%, the dynamic price-earnings ratio of 12-15 times, while the nation's major the city's real estate rental yield of 3-5%. And in the foreseeable future, no significant upward or downward trend, be converted into price-earnings ratio of 20-33 times, the dynamic price-earnings ratio is 20-33 times more.
In contrast, investment in real estate investment in real estate stock price-earnings ratio price-earnings ratio is only 1 / 2 to 1 / 3, the relative investment value is self-evident. In fact, we only live a simple vision card may invest in stocks and real estate, but also began to take shape. The profits from a real estate market, rather than the secondary market. Purchase of real estate shares, equivalent to that we are in the market as a developer to make a profit, to buy a specific property, the equivalent of real estate investors, we are as the profits earned by the secondary market. As long as developers do not hide the profits, we buy the stock price was still relatively in line with the valuation standards, naturally than investments in real estate investment in real estate stocks higher potential gains. And the longer the greater the gap between the proceeds. It's no wonder, Vanke Property prices in Shenzhen rose from 90 since the end of 10-20 times, but its shares rose 200-fold over the same period. In Hong Kong have the same situation, Li Ka-shing's property stock and property prices have also shown the same trend.
Look at investing in stocks and investment risk of real estate properties, in terms of non-systematic risk, the investment risk of real estate investment in real estate stocks over the risk is significantly large, because the individual real estate investors are not likely to invest in different quarters, different cities, different types of various sets of real estate, but investing in stocks can opt for a national and even global listed real estate company or a combination of several regional real estate stocks, the ability to circumvent the natural non-systematic risk is much greater. The systemic risk is concerned, despite the investment in real estate and real estate stocks are subject to, such as raising interest rates, tax increases like the impact, but the brand developers the ability to react to shocks in general real estate investors, coupled with some stock still Call Put warrants arrangements, margin trading facilities, the entire stock of another class of stock index futures hedging tool, so that investment in real estate stocks means to deal with systemic risk than investment in real estate is much larger. It's no wonder the recent price-control policy, despite the incessant, the mainstream real estate listed companies profits and revenues are still climbing steadily.
Finally, we come to compare investment in real estate and investment property stock liquidity. It is clear that, invest in real estate is not only out of convenience, but also in the housing market also includes the impact of price adjustment costs. In addition, time costs and transaction costs (all taxes) are significantly higher.
To sum up, either from the relative valuation of short-term point of view, or from the proceeds of both the risks inherent characteristics and attributes of liquidity, investment real estate stocks are superior to investment in real estate. It's no wonder many people who can not go to Europe and the United States in pursuit of homeownership, and the Chinese fortune Europe tend to purchase the Housing Land proud.
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