Problems

Problems With Traditional Real Estates and Property Management

Little or no transparency

Realtors or brokers usually keep property buyers and sellers in the dark. Most are just concerned about the commission charged from both buyer and seller with zero transparency. Most real estate agents do not act in the client's best interest, it’s always a tedious task to search for an agent who will act in the best interest of the client without putting commission first.

Property data safety issues

Third-party property listing sites tend to charge high subscription fees whereas property data stored on their centralized server is prone to hack and not safe.
The information on forms or documents used by Real Estate agents for property purchase/sale can be lost if not properly backed up or in case of unforeseen contingencies like server hack, hard disk crash or fire outbreak.

Title management issues

A lot of fraud and errors occur with title management. If there is a mistake with property title, it is always cumbersome to rectify and the owner is at risk of losing the property. Manual paperwork hugely used in traditional real estate transactions is the major cause of this issue.

Rising issues with fraud / scam

So many people get scammed trying to buy/sell properties either from fake agents or direct dealings.
Difficulty in negotiating a contract due to high fees/commission from traditional middleman (broker)
Most times property buyers and sellers tend to nullify negotiations due to very high commissions from brokers.

Other problems include

Paper property documentation system used in many real estate transactions is outdated. Limited or no accessibility to average investors.

Research shows that largest demographic of real estate investors is from countries in Asia, such as Japan, South Korea, and China. However, there are also potential buyers from USA and UK, where the majority of the population understand Blockchain and crypto currency. With international travel restrictions due to the coronavirus, many foreign real estate investors are still willing to buy in real estate in Australia as she is recognised as a politically safe and has a strong history of capital growth.

The Asians, especially the Chinese remain to be one of the biggest investors on real estate, especially in cross-border properties. But why do Chinese love to buy real estate outside their own country? Here are 4 reasons why most Chinese buy properties overseas:

Price Differences

The Chinese real estate market can be described as saturated due to the decreasing interest of locals to invest nationally. It could be said that Chinese tend to look for a real estate investment opportunity in other countries where the value is worth the price. In Australia, Chinese buyers purchased AU$32 billion of commercial and residential real estate investment in 2015–2016.

Government Constraints

Lands in most Asian counties are owned by the Government. Their laws allow people to have the right to use or lease, but not to own land. To some Chinese, having just the “right” to own a property for a period of time is not the ideal investment. Therefore, they are attracted to countries that grant them ownership rights such as Australia.

A Change of Environment

One of the most obvious reasons why Chinese buy properties overseas is that they have plans on leaving their country. It might be for any reason such as migrating, work, or studying abroad. As nationalist as they are, Chinese fly to other countries for countless reasons. One of them is to change their environment for the better. The air pollution in major cities in China is a serious problem.

Social Status

There are more billionaires in China than in the USA, or any other country for that matter. With 819 recorded billionaires, China claims the highest spot on the list of countries with most billionaires. A good image is such an important constituent of being in an Asian family.

As a matter of fact, Chinese buyers are the fastest-growing segment of global property buyers. It is projected that by 2020, Chinese overseas property transactions will hit US$220 billion. It is fascinating how big and fast the Chinese global property market grows. China, at the moment, is the world’s largest international commercial real estate investor, just as it did in the residential sector in 2015. This makes China truly one of the biggest contributors in the Global Real Estate industry and will be in the foreseeable future.

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Little or no transparency
Property data safety issues
Title management issues
Rising issues with fraud / scam
Other problems include