Korean Job Discussion Forums

[chaz47]

My housing contract expires in August and I am considering what I want to do. I should be able to squeeze another 5,000,000 out to reinvest in my current apartment or another... for the grand total of 10,000,000.

It seems as if they only apply 10% of your key money towards reducing your rent... which stinks...

I just wonder what the rest of you who got your own places think, is it worth it to reinvest in your apartment's key money just to whittle down you monthly rent. My housing allowance only cover's half of my monthly bills for rent + utilities.

The money invested in key money isn't going to grow in value, I guess there is a possibility that the won may depreciate significantly in a few years and that would mean my money would actually lose value.

On the other hand that investment will save me $600 a year. If I continue to roll my dough into key money then that will double next year and the next year, etc.... so... not tooo shabby a thought.

I dunno any financial gurus on here care to poke holes in this idea?

[chaz47]

I just did the layman's math. If I invest 5,000,000 per year in my pad and it saves a measly 50,000 per month per year... eventually it accumulates to 21,600,000 in the year 2014. This is in addition to the actual 55,000,000 that exists as key money.

Does that sound right? 8 years and a savings of 76,600,000?

I think that sounds pretty damn good for a fortieth birthday present to myself.

[Horangi Munshin]

Have you taken into account the interest you could make on the 5 million if you put it in the bank instead?

[chaz47]

[Horangi Munshin]

I don't know what the interest rate would be on 5 million, maybe 5% in Korea banks. So 50000 a month reduction in rent sounds ok. As long as you're sure of getting your key money back that is.

[simone]

The calculation to me seems to be 10 mill key money = 100,000/month.

We could have paid anywhere on 800/month with no key money, to 80 million and no rent.

We picked somewhere in the middle.

[Scotticus]

You also need to keep in mind the VERY real possibility that you won't get your key money back. I have a Korean friend (not even a waygook) who is stuck in his apartment because his ajumma landlady doesn't have the 53mil key money he paid. Can you imagine the blood that would get spilled if some landlord tried that kind of shit in the US?

[hubba bubba]

This is a complicated issue, and not something I can easily get into here. There are several factors that you need to consider. However, long term, I'd be wary of putting my nest egg into the won. What happens in 5-10 years when China rolls up with cars and tv's. SK's economy could tank, along with the won. Just one scenario.

There are no right answers really, I wouldn't go putting all of my savings in and ONE thing tho.

[Yaya]