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Importance of real estate and construction sector

The real estate sector and construction and property sector whose role is quite important for the economy of a country. emerald hills estate With the growth of the property, sector indicates economic growth. In addition, with the development of the economic sector will lead to the development of other sectors. Compared to 1990, is currently the property sector has been growing quite rapidly. It is marked with a number of companies engaged in real estate and construction, including property. In 1990 the company is engaged in property only 20 companies. Even when a crisis occurs, a property company is able to survive even if only by 20 companies, but with an improving economy, real estate industry, construction and property began to rise and until now there are 50 companies.

In this case, the company has a capital structure that is strong, then the industrial property today should have a capital structure policy which can make it survive in times of crisis because industrial real estate and construction can not be separated from housing loans so that the prevailing interest rates are also very influential the property industry. Therefore, the property industry should be more careful in structuring the capital and in the provision of credit because the interest rate is an external factor that can affect the capital structure. If not careful, companies can bankrupt even had to close. In the event of a crisis as mentioned, people may not be able to pay the loan interest properties that have been enacted or mortgage their real estate. If there is no income, the company would have trouble paying debts that have been used for company operations.

One thing to note, the interest rate is an external factor that can not be manipulated by the company. In addition to interest rates, changes in exchange rates and inflation rates are also external factors that can affect the capital structure although in the end, the company will develop the capital structure based on the internal factor with consideration of minimizing the risks that may occur due to changes in external factors to get the optimal capital structure.