Forget about the shrinking bank balance. The real question is: do you have wheat and garlic to fund the property?
Chinese property developers are pushing the limits to attract buyers to the real estate market. There has been a downfall in sales that caused developer Evergrande to fall into a debt crisis. In an effort to get things back on track, Chinese officials have become more desperate as they allow wheat and garlic as acceptable forms of payment in land purchases.
Central China Management, an investment holding company, said in a recent ad that it will begin accepting down payments of wheat for houses in Minquan county. Buyers can use the grain to offset up to $24,000 of their down payment. The cost of the new homes will range from $100,000 and $124,000
Wheat isn’t the only pantry staple used to fund real estate transactions, as garlic is also an acceptable down payment for residential homes in Qi county in Henan province. Henan province is a significant supplier of agricultural goods, as 25% of China’s wheat is grown in Henan.
In the company’s statement, they wrote, “On the occasion of the new garlic season, the company has made a resolute decision to benefit garlic farmers in Qi County. We are helping farmers with love, and making it easier for them to buy homes.” Even if the company falls short of the yearly profit targets, the staff still get food to feed their families.
Desperation in one sector might be a golden opportunity in another. Chinese farmers can take advantage of this campaign as they should have an ample supply of grain and garlic. Even if farmers are sinking into debt, Mother Nature may come to the rescue with their financial troubles. Swap the staple goods for a roof over their heads.