Having been to a place like China, I was amazed at the number of empty buildings and “ghost cities”. My amazement was further climaxed with the news from one of our local Chinese friends who informed us that anyone who buys property in China can only lease the property for 75 years. Afterwards, the land and property goes back to the government.
Initially, that was quite confusing for me as I grew up in a place like Australia. Australia, a beautiful country, a place where you can buy land and it will be forever yours. See, it’s not just the idea of keeping land forever in your name, but in Australia we have the general notion that the value of Real Estate, whether it is land or property that it should “double in value every 10 years”. This is what Australians consider solid “Capital Growth” where we are enjoying both the increase in value of the property and we can also be enjoying higher returns by renting out the property.
If you’re a smart investor, you know where to look, what to buy and when to buy it. Growing your wealth anywhere from 10-20% per year is a common experience.
Now, you might start thinking “well that’s great news if you’re Australian!”. Actually, I would say that Australia is quite “open” to people wanting to invest in the property market in Australia.
In fact, investing in Australia has other benefits like the potential of becoming an Australian citizen. You heard me right, at this moment in time the Australian government is offering an investment visa to people willing to invest $1.5 million Australian dollars (or 7.25 million RMB at this point in time) over four years. It is my understanding that people under this visa would be eligible to become an Australian citizen after 4 years, having this kind of arrangement can be ideal especially for Chinese parents and families who want to send their kids to prestigious schools and universities in Australia. Even though this opportunity is out there for everyone, I see this as an extra convenient arrangement for Chinese parents who want to invest their money for their kids and grand kids allowing them to have a bright future.