Why is Aussie property so appealing to Chinese investors?

China is ranked as Australia’s fifth largest investor, so why are so many Chinese investors zoning in on Australian property?

There are two key reasons: affordability and luxury.

While China is home to some of the most expensive properties in the world, many of the wealthier members of society, which already own a several properties in their home country, are looking to diversify internationally.

According to a Chinese international property search website, juwai.com, 63 million Chinese nationals have wealth big enough to buy property overseas.

Also read: Where are Chinese investors buying property in Australia?

And a lot of these people are looking for places where their children can get a good education and where there is security of wealth so they can prepare for retirement, the Mortgage & Finance Association of Australia (MFAA) notes.

The ability to own a property for life is also appealing to Chinese investors – in China, Property Rights Laws dictate that homeowners are only allowed a 70-year term for residential purposes.

"[In Australia], there is a stable and fair rental income, compared to a low rental income in China," Donald Tang, sales director at Alliance Mortgage Solutions told MFAA.

"Also, loan repayments begin at settlement, whereas in China, repayments start from the approval of the loan." This means, for people investing in Australia, there is more time to raise the capital.