Topic: China real estate crisis: Buy a house and get a gold bar! No Bitcoin unf! - page 3. (Read 628 times)

I am one of not so few people who expect housing market (bubble) to crash, people has been hoarding real-estate property too long, expecting an unreasonably high profit, while the most potential buyer --the younger generation-- does not have enough money to buy those real-estate


It's not a new MO by real-estate dealer, I have seen this since at least 3-4 years ago, this Chinese developer is actually a bit better than my developer, they are offering a car. Not only the value of the car is immediately decreased up to 30% after it got into the consumer hand, but they also give the cheapest car they can find on the market.

I do not have any authentic answer to your query, but saying that they are giving a gold bar as a gift and also saying they are doing that to fake the market value as per your own example. I think this gold bar is no longer a gift; instead, people are paying for it too.

But I am truly shocked to see how deflation could also shake the base of a powerful country. I have seen the world facing severe conditions in inflation but did not realize any situation in which deflation could make such an impact, and the strategy to fake the price of real estate in China is really good.

I mean, to avoid a more deflationary effect and to attract people, such a strategy is good. I am having such experiences just now (such experiences mean deflation impacts).

To be honest, I do no know how a country which is allegedly controlled by a communist party would allow such chaos to continue to go on. 
One must also keep in mind the quality of the building materials of those projects, there are already many videos on Youtube pointing out how entire building have to be evacuated because the structure gets too weak through time.

It would seem that the building boom in China which is kept artificially, does not respond to the interest of the central government to give shelter to all the chinese people but selfish interest of a few private entities.

There are ways to detect counterfeit gold bars. To be honest, If I was to accept a deal like this one, I would gladly to go for destructive methods of verification.
 

The world just keeps giving, after my previous topic about paying your debts with monkeys we go to the next funny one, new home gold bar gifts!

Yup sadly, it's gold, not Bitcoin, not even Dogecoin or a 2 by 2 pixels NFT!
And maybe it's even worse than that since gold can't be checked by a decentralized network for authenticity evey time, it might be something like this:



^ NOT a Toblerone !

The article is a bit old but it's the only one out of a few tens I've read that covers every step.
https://www.theguardian.com/world/2023/jun/12/gold-bars-used-to-lure-chinese-homebuyers-amid-market-slowdown

TLDR:

So, in the long version, how and why is this happening:

- Economic slowdown, deflation on the horizon housing sales have crashed
- The government can't allow the prices to go down that much because it will trigger something worse than 2008, with the main government and regional ones being in debt close to 300% which will be a disaster
- Since house estate developers are unable to cut fixed prices, they offer you a deal, giving you the house cheaper in reality but at the same time keeping the price up techically

So you buy 2 million yuan and you get a 400 000 yuan gold bar, so the price of the house stays at 2 million but you only pay in reality 1 600 000!

Now, we all know the Bitcoin situation in China is far than ideal, very far, like over the hills and far away, but could this be some breakthrough momentum when you're not allowed to pay what's worth but what's being said it's worth?

Let's look at it:
- Most are afraid that the bar will be fake, or of lower purity, total advantage bitcoin.
- Gold is harder to buy and once controls are in place no way near a million people a year will be able to get their bars
- Not that I'm advocating this but, it's a bit easier to deal with some accounting books once you deal with coins,I mean you can say that you gifted him 1 Btc and then send another 1 btc to some address. Again I'm not defending or advocating for tax evasion!
- The government doesn't like the gift loophole but doesn't like Bitcoin either so you got your hands already, but it will like a bit more since they are interested more in gold than in coins
- The developers won't have to pay one hundred armed guards to keep safe 1 ton of gold will the clients be afraid to leave the agency carrying a bar in their pocket, it can be done online

But more importantly, the seller can just say it's a worthless Bitcoin voucher code, it doesn't affect the price at all and besides, it's almost impossible to check if the voucher has changed owners. If I sell you a house and gift you 100 Pokemon cards I doubt pretty much someone will come to appraise it. Now that I think twice about this I'm really calling for tax evasion here  

So, do we have a potential usage scenario or I'm grasping at straws in a turd market full of bear dumps?