What are the characteristics of real estate projects?

The real estate appraiser asked that real estate investment projects have their unique characteristics, which affect their total value. First, fixed position (immobility) Fixed position can also be called immobility, which is the most important feature of real estate assets. For tangible or intangible property such as stocks, bonds, gold, antiques, etc., if there is no trading market in the place where the holder is located, he can easily take it to other places with such trading markets for trading. However, real estate is completely different. It is not only constrained by the regional economy, but also influenced by its surrounding environment. The so-called value of real estate lies in lots, and real estate cannot exist alone without the surrounding environment, which emphasizes the importance of lots to real estate investment. The immovability of real estate assets requires that the location of real estate must be attractive to developers, buyers and tenants. In other words, it can enable developers to obtain appropriate development profits through development investment, enable buyers to obtain reasonable and stable regular income, and enable tenants to conveniently carry out business activities to earn normal operating profits and have the ability to pay rent. When investors are ready to invest in real estate, they attach great importance to the study of the macro position of real estate. Obviously, tenants are definitely unwilling to rent properties in areas with deteriorating environment and declining urban functions for a long time. In addition, the value of real estate investment is not only affected by its current net rent level, but also closely related to the overall appreciation potential of real estate in its region. Due to the immovability of real estate assets, investors pay equal attention to the future regional environment and possible changes in a specific property when making investment decisions. Through the understanding and analysis of urban planning, we can choose the investment location correctly and predictably. Second, the land with a long life cycle will not be destroyed, and the rights and interests of investors in it are usually more than 40 years, and the period of owning this right can be extended according to law; The above-ground buildings and their appendages also have good durability. Therefore, real estate has a long life cycle, and real estate investment is a long-term investment. Real estate has both economic life and natural life. Economic life refers to the duration that the operating income of real estate is greater than its operating cost under normal market and operating conditions, that is, the net income is greater than zero; Natural life refers to the duration of real estate from the time when the above-ground buildings are completed and put into use to the time when the buildings cannot be used safely due to natural aging or damage of the main structural components and equipment. Natural life is generally much longer than economic life. In theory, when the maintenance cost of the property is too high for tenants to manage, simply leave it vacant. However, the reality is that if the real estate is well maintained, its longer natural life can enable investors to obtain several economic lives from a family investment, because if some modifications are made to the building to change the nature of the use of the building or the type of the target tenant, investors can continue to earn considerable income with much less investment than re-purchasing another real estate. Foreign research shows that the economic life of real estate is related to its nature of use. Generally speaking, the economic life span of apartments, hotels and theaters is 40 years, industrial workshops, ordinary houses and office buildings are 45 years, banks and retail commercial buildings are 50 years, storage buildings are 60 years and rural buildings are 25 years. It should be pointed out that the fixed assets investment recovery or depreciation period stipulated in the tax law is often determined according to the national tax policy, which is not necessarily the same as the economic life or natural life of real estate.