[English Translation] How to solve irrational soaring problem of real estate? GOD has already told us the answer in Bible.

Many countries are struggling for the irrational soaring in real estate. In fact, while whole world keeps on printing money, the "nominal price"(not real value) of the real estate as a result has upward pressure, but if such irrational soaring is out of control, it will cause a social problem.

CROSS Capital Group believes that GOD has been aware of such problem in the very beginning of human history, and has been expected that the land issue is very important for people’s livelihood. Therefore, in the Old Testament of Bible, GOD enacted “the law of the land “to Israel people who was going to enter the Promised Land "Canaan", which actually has included the concept of “Buyback Option ".

GOD of Israel said “The land should not be sold for ever; for the land is mine; for you are strangers and sojourners with me. ……..If you don’t obey my commands, the rich will be getting richer, the poor will be getting poorer; and you will suffer from it.” GOD assigned lands to the twelve tribes of Israel, said "If you need to sell the land to obtain the necessities for living, the seller should sell it in accordance with the value of the crops which could be harvested from the land in the next 50 years. Besides, the buyer should return the land automatically to the original seller after 50 years (in fact, it is the Usage Right of Land for 50 years in today’s term). During the 50 years, the seller can redeem the land at any time whenever he has enough money. The redemption price of the land is according to the years being left before the 50 years matured, that is the value of the crops which can be harvested from those years.” For example, there are still 10 years left before the maturity of the 50 years, then the original seller can redeem the land with the value of the crops which can be harvested from the land within the next 10 years. Under such economy system, there is no soaring problem of land price, because buyers should return the land to original sellers after 50 years. What more powerful is the original seller can redeem the land at any time whenever he has money. In today's financial terminology, the buyer is providing a "American Call-Back Option” to the seller. Having such an option, the buyer can no longer resell the land during usage period of 50 years; otherwise, buyer cannot fulfill the American Call-Back Option when original seller executes his call-back right. In this way, it can stop land buyers to resell the usage right of land for gaining abnormal value appreciation from the land (Note: The Call-Back Option can be evaluated by mathematical model today). GOD's wisdom is so immeasurable; HE sets “Option” to promote justice and a mutual assisting economy system, but human beings are using “Option / Derivatives” to abuse others and earn huge profits.

Some people said this method is no longer work, because the land has been privatized; and even in a Communist country, land belongs to the Government; both situations didn’t match the background of the old testament of Bible which people can still get back their lands in 50th year. Don't worry about it!! GOD has something more powerful, and HE is much wiser than our intelligence!! GOD of Israel also said "For selling a dwelling house in a walled city, seller has the right to redeem it back during a full year after it is sold. If the seller cannot redeem the house after one year, the house will be belonged to the buyer for all his generations and seller cannot redeem it anymore". This kind of "1 Year Buy-Back Option" is good for the private ownership of properties nowadays. Imagine that, if someone sold a house to you and tied it up with a Buy-Back Option in the next year, would you be willing to spend unreasonable high price on this house? More importantly, during the year, you can't resell the house because the original seller may redeem it at any time, how could you go for looking a new buyer to buy the house to earn some appreciation? Think it further, if the price of this house raised during the year, then the original seller will definitely try to redeem it. Thus, there is no chance for speculation of price soaring; in turn, you will be unwilling to bet on future prices going to soar and unwilling to buy the house with high price at the beginning of this transaction. In such way, it can curb the real estate prices from skyrocketing. In a privatization society, this kind of “1 Year Buy-Back Option“ still can make the real estate market healthier. But the government must have guts to implement it, however, we guess most governments will not be able to do it due to elections concerns.

To learn more about GOD's design for cooperational economy system, please refer to "The JUSTICE Economy with MERCY: Way to solve the gap between rich and poor - the biblical economic structure".