Lots of Chinese investors are buying real estate in Australia, America, Europe and almost everywhere.
Hence there are a few things that all of us can think about this growth in Chinese buyers:
The Chinese mentality of overseas opportunity really wants to be known, being influential and wanting to try risks abroad. They tend to look for good investments such as real estate and want to show that opportunities exist outside your comfort zone. What we can also surmise is that if they buy and invest in different countries by group, they can increase the strength of investments through unified financing.
Photo: Michael Mai and Matthew Khoo, of ICD Property
Another reason is immigration to a certain country. It’s a factor in their part that buying properties in a country where they are can help them get a visa and prove that they’re making serious contributions to the economic growth and commitments. Commercial and residential real estate properties are the main attraction for these Chinese buyers to get immigration grants which qualify them in many countries.
The Chinese also thinks about diversification. They want to be ahead of their China market and to diversify their portfolios. New financial advisors are influencing new rich Chinese to invest in other countries, even though they know that most Chinese invest 100% in the local market.
Some of them are looking to get their money out of a Chinese bank. Buying real estate overseas is a good way to get their money out of China. Sometimes the money earned in China is not being taxed in a way that it can be reported to tax bureau and a very legitimate way to move their cash out.
Chinese people enjoy betting and take risks. They know that they can buy cheaper real estate overseas instead of buying it in China. They want to make a profit when they come back into the game, hence having sky high real estate prices pushed them to go overseas. All of us know that China has the highest prices when it comes to real estate. Locals are having a hard time to invest in their own country and acquiring overseas property looks relatively cheaper.
Chinese highly respect international education. Education is one of the main investments in their lives and families. Having a real estate in a certain country will gather them positive points on their college application overseas plus they will be able to live there while studying.
Investing in a real estate is a safe bet for Chinese investors. They want to buy assets even if the price may not be appreciated and thought that they need and will always have this property.