CRI听力:Buying Property Abroad

At an international real estate trade fair in Shanghai, many Chinese people show their interest in overseas property. Some want to buy property abroad as an investment, while others wish to emigrate abroad through buying property. But more people are now saying concerns about their children's education are the main reason for buying property abroad. Here is one visitor at the trade fair.

"It's only for my child's education abroad in the future. Price doesn't really matter, it's ok as long as my child is safe there."

Although buyers are passionate about buying property abroad, they know little about what qualifications they are expected to have, and what necessary procedures they must go through in order to buy overseas. Instead, they follow exactly what real estate developers are telling them.

One prospective buyer says he was told that buying property overseas can be done through taking out a mortgage loan. However, overseas real estate projects are very complex, and people must pay attention to many different areas, including buying real estate, investment, studying abroad, and immigration procedures.

Insiders say it's not easy for buyers to learn about the credit of local real estate developers due to differences in language and cultural background.

Buyers have to bear risks such as discrepancy between immigration policy and real estate purchases, for example, even if you own a house overseas, in some cases you are not allowed to manage your investment.

Gu Shiqi, an exhibitor at the trade fair explains:

"If you buy property abroad because you want to lease it out, you must have a clear understanding of the local market. You should not blindly buy property abroad. It's best to be clear about the situation beforehand, or get advice from insiders and experts."

Control measures on real estate have stimulated the interest of many Chinese people to invest in real estate abroad. Due to current control policies, 30% of home buyers have turned their attention from the domestic market to overseas.

Statistics reveal that investors from the mainland and Hong Kong account for 10.8% of the market seeking new homes in the US.

Due to the advantages of a stable market, investment in overseas real estate has become more and more popular among Chinese home buyers in recent years. In Australia, for example, where Chinese investors generally prefer to invest in real estate, in most areas the price of a house is 20,000 yuan per square meter. This is close to the current average house price in some regions of first-tier cities in China.

For CRI, I am Zhang Wan.