This means that real estate developers are saying “I can’t sell this house for $250K but I can sell it for $300K and give you a 1Kg ingot worth $50K” to get around the overvaluing of the house, because people won’t buy the house at the prices Chinese government insists they should be sold.
How so? This looks like unscrupulous businesses finding loopholes in the regulations and the government being slow to close them. Same thing happens in the west.
Governments are preventing companies from rapidly dropping house prices. But because they’re not worth what they’re forced to keep charging by the government (government isn’t forcing anyone to buy for example), developers are needing to add extra value to the sale to get buyers, hence the gold bars.
House is worth $300k, but the government is forcing you to list it for $500k, so if I throw in $200k worth of gold bars, the whole sale is worth the price.
I’m fucking dumb. What does this mean?
This means that real estate developers are saying “I can’t sell this house for $250K but I can sell it for $300K and give you a 1Kg ingot worth $50K” to get around the overvaluing of the house, because people won’t buy the house at the prices Chinese government insists they should be sold.
Oh my… what a shit show. Thanks for explaining friend.
so communism is when unbearable housing markets are government mandated instead. What a world to live in.
How so? This looks like unscrupulous businesses finding loopholes in the regulations and the government being slow to close them. Same thing happens in the west.
Well, if we’re being honest, it’s capitalism with communism branding. Otherwise you wouldn’t be able to buy and sell the house in the first place.
Governments are preventing companies from rapidly dropping house prices. But because they’re not worth what they’re forced to keep charging by the government (government isn’t forcing anyone to buy for example), developers are needing to add extra value to the sale to get buyers, hence the gold bars.
House is worth $300k, but the government is forcing you to list it for $500k, so if I throw in $200k worth of gold bars, the whole sale is worth the price.
Wild. Can’t quite wrap my brain around how fucked this is.