On the risk of real estate investment.

Investment risk is the performance of risk phenomenon in the investment process. Specifically, investment risk refers to the deviation between actual investment income and expected income due to uncontrollable or random factors from making investment decisions to the end of investment period. The deviation between the actual investment income and the expected income may be that the former is higher than the latter and the former is lower than the latter. In other words, there are both the possibility of economic loss and the possibility of gaining additional income, which are all manifestations of investment risk.

Investment is always accompanied by risks. There are different risks in different stages of investment, and investment risks will change with the progress of investment activities. The nature and consequences of risks in different stages of investment are also different. Investment risk generally has the characteristics of poor predictability, poor compensation, long risk existence period, great loss and influence, great risk difference among different projects, and coexistence and cross-combination of various risk factors.