Market Warriors?  Or Chinese Bargain Hunt?

Melbourne’s property market has a target on its back. 

With the current slump expected to linger, Chinese investors are rubbing their hands together with glee, as Melbourne is set to remain Australia’s Chinese buyer capital.

Due to the lack of property investment opportunities in China, and the fact that its inhabitants are generally rolling in a whole lot of cash, many Australians could see themselves missing out on a piece of homeland real estate, as they vie for a place in the market.

Assuming the economic climate in Australia stays the same, foreign buyer activity will remain stable.  But should there be any significant changes, offshore investor activity could soon escalate.

The Chinese have their sites zoomed in on Victoria for several reasons.  Compared to Sydney, Melbourne retains better lifestyle, prices, and lower stamp duty advantages.  The suburbs of interest appear to be the CBD, Point Cook, Doncaster, Southbank and Toorak, even as far-reaching as Geelong.

The good news is, there are still some deterrents for Chinese investment down under – such as extra foreign buyer taxes, difficulties in obtaining finance, and capital controls back home.

But with the extra squeezing of credit from the big Australian banks, and competition from overseas, the Great Australian Dream now seems just that – a distant, hopeful longing.  And it’s even harder for the younger generations to contend.

The solution, though, could be closer than you realise.

Pay less money for a share of Australian property in a high-growth area like Doncaster – and see your returns multiply sooner.  On top of that, imagine if you didn’t have to worry about finding finance, paying extra taxes, or settling for poor-performing investments.

It certainly seems like a smart move.