You are assuming that everyone needs to rent rooms to people. My home is place of refuge not a hotel. When something breaks you are responsible, and if the real estate market goes upside down you are stuck with the house. In the USA, if you do not pay your property taxes you will lose your home. My aunt has lost two homes, along with all her monthly payments and her down payments.
Besides, in China what houses are big enough to rent out? Also, China is in the middle of a housing bubble that is about to pop. YOu can look it up on google.
When my employer provides me with free housing, why would I tell them: "No, I feel like buying a home in China. If you decide not to renew my contract, the bank can keep the house." Of course, I am being sarcastic here.
But for so long my parents home was like an anvil to their feet.
Also when you factor in inflation, 160,000 dollars today does not buy as much as it did 20 years ago. If you buy a home, fix it, and sell it quickly than I can see you making money. Or if you buy apartments or buildings with rooms to rent, then yes I can see you making money. But out of my parents one floor, four room home, they are not making a dime.