Not surprising, the topic of investing in China is a relatively popular one, particularlly when billionaire investors like Warren Buffett and Investment Fund Guru Anthony Bolton are so publicly bullish on the country. But what does this mean for regular investors? Are there safer alternatives out there, like India where there is also a tremendous growth rate in terms of the population, business services and the like? Let’s first look at the differences in these countries’ growth rates.

China compared to India – GDP Growth Rates: Without question, both countries exhibit sharp upward growth rates. Even in a period of slowing growth, China just recently reported that growth has slowed to 9.6% in the third quarter of 2010… compare that to the actual growth rate of the United States at 1.7% and it is easy to see why so many investors are bullish on China as an alternative investment to domestic equities.

Like the United States, India’s GDP growth rates are muted compared to China’s. They always have been with the exception of three times in the past 30 years. Does this point to a slower potential for growth? Not completely; it simply showed that growth rates were slower in India compared to China.

China vs. India – Opportunities: Without question, this is one region where many investors will disagree. While both countries offer tremendous opportunities for growth, there has been some debate over whether China’s currency control mechanisms are supporting economic data, whether its government’s engage in public business can sustain the growth, and whether the country’s quality standards can be tolerated by the rest of the world that is seemingly more than willing to invest at the moment. The presence of so many questions and uncertainties point to the fact that there is some risk associated with investing in China and investors need to know this before parting with their money.

Similarly, the increasing population of India (it will surpass China in the next decade in terms of work-eligible adults), economic problems and political tensions with some of its neighboring countries also pose risks for investors interested in India.In either case, there are certainly risks, which investors need to weigh with the potential for contrary profits. When weighing these risks, investors might find that growth rates are really the best thing against which to base a mid- to long-term investment decision.

Growth rates alone should not determine whether an investor should place his or her resources in one country over another. If that were the case, China would make more sense. Nor should opportunity risks be allowed to betray one’s investment decisions; if that were the case, why might one invest in China at all?

Real estate recent years has rapidly grown in China with international property investors who seek maximum diversification within their portfolios because the real estate market in China is in demand locally and internationally and demand spans both the commercial and residential real estate sectors.This means that there is maximum room for profits, income and gains from Chinese real estate which makes it an intensely attractive commodity for investors.

The Chinese government are also keen to attract foreign investment into their country and began easing many restrictions to smooth the path for those interested in purchasing property in China back in 1998. Their efforts to boost their economy through the promotion of foreign direct investment proved almost too successful and resulted in the government fearing that speculators would strip the property market of stability. As a result the Chinese government have now made it more difficult for investors to realise short term gains from the property market. Because of this fact the market is now less popular with those real estate investors looking for short term gains and more popular with those looking for a stable market with massive potential for demand and expansion over the medium to long term.

In terms of foreigner’s rights when it comes to owning real estate in China, all overseas buyers are protected by Chinese law but actual real estate law and the property buying process in China are new concepts that are relatively immature and unsophisticated. This means that investors who wish to buy property directly in China need to secure the services of a reputable lawyer to assist with the intricacies of the real estate purchase process.

For those who wish to maximise the potential gains available in Chinese property but who wish to remain relatively hands off any investment made, there are a series of property investment funds specialising in Chinese real estate now available. Such funds issued by larger, well established financial institutions are proving increasingly popular with both local and international investors. Such real estate investment funds allow an investor to gain access to the potential of the property market in China without having to commit significant sums of money directly to the market. Furthermore, by investing in this way an investor’s underlying money is far easier to access than if it were used to directly purchase real estate in China.

Whichever way an investor decides to approach investing in the real estate sector in China one thing is for certain – never has the Chinese property market been so popular with so many international real estate investors.