Factor Influencing Investment Decision in Property

Factor influencing on investment decision in property: A case study in Beijing, Tianjin, and Hebei

Full Name

2020-11

CHAPTER 2: LITERATURE REVIEW

Introduction.

In recent years, the rapid development of China's socialist market economy has driven the investment upsurge of China's real estate industry, making China's real estate industry develop rapidly. Real estate is a commodity and a good target for people to invest in real estate in the market economy. The real estate industry, which consists of real estate investment and development, consultation, appraisal, economy, and property management, is essential in the national economy. Many people are getting higher returns on their investments in real estate, and their lives are getting better. However, due to the continuous high growth of the real estate market in recent years, the risks are becoming more and more apparent. At present, the real estate market trend is weak, and various purchase restriction policies are frequent in which investors are more likely to take a wait-and-see attitude instead of making money by buying, as in previous years when the real estate market continued to grow. The relationship between financial knowledge, investment behavior, and personal income in real estate investment has also become a research hotspot for scholars. With the progress of society and the improvement of comprehensive personal quality, financial knowledge, investment behavior, and income have been greatly improved. The cultivation of these comprehensive qualities is of positive significance to the stable operation of the real estate market investment field.

Dependent variable - Real Estate Investment

Real estate investment is the investment in land and real estate development, real estate management, and real estate purchase are to obtain expected benefits. It comprises expenditure on new construction as well as maintenance. Real estate investment has been hypothesized as a supply-side equation (Mak et al., 2012). In a broad sense, the expected benefits of real estate investment vary with the different investment subjects. Government investment pays attention to macro-economic, social, and environmental benefits (Chulthira & YansomBoom 2019). The real estate that individual purchases oneself uses, pay attention to the play of its useful function. Although the pursuit of benefits is different, all kinds of benefits are mutual crossover, mutual influence. This paper focuses on personal investment in real estate, which affects the investment behavior of many factors. Personal financial knowledge, investment behavior, and personal income can have a particular influence. Still, how big these influences are, we will analyze the relationship among these factors through the following exposition.

Independent Variables

Personal financial knowledge

Personal financial knowledge and its impact on investment decisions are evident; now, more real estate investors should have the corresponding financial knowledge, excellent investors must be a financial masters (Van et al. 2012). Especially for significant investments such as real estate, it is more necessary to have a rich reserve of personal financial knowledge and keep learning (Chulthira & YansomBoom 2019). Generally, possession of personal financial knowledge is essential as it has a direct effect on financial decision-making. Personal financial knowledge can help people get more benefits from financial management because it involves individual decision-making that can help improve people's financial management ability (Tang & Gaopeng 2007). In addition, the level of people's financial literacy plays a vital role