While other countries are entering a state of economic decline, China is becoming a global economic tiger. Chinese investors are currently on a property-buying spree, fuelled by China’s surging wealth from the country’s slowly expanding influence in the gold, oil and food markets. In addition, China has taken the consumer market by storm, surpassing the US, turning them into the world’s no.1 investor.
Why Chinese Investors are Eyeing on Foreign Real Estate?
The primary reason for purchasing real estate abroad is that it is a lucrative investment. In addition, buying overseas real estate is an ideal asset protection. Some Chinese do not have intentions on moving to a foreign country but they remain eyed on possible opportunities for earning above average profit. They often go for buying a run-down or distressed property; then they make renovations before selling the property. A good profit margin would be along ten percent to twelve percent. This can then be sold after several months. Recently, Beijing, China has established a state-backed wealth fund from its $3.2 trillion foreign reserves, which paved way to giving assistance for Chinese companies to invest overseas, according to China Invests Overseas, one of the leading online resources for investment news. Read more