Korean Job Discussion Forums

[No_hite_pls]

Can E-2 Visa holders buy Property in Korea?

I'm looking at it as possible investment property that I may live in (if that helps). Would my Visa change if I was to become an investor or is it even possible?

[Juregen]

[jetrash]

it really is not a good time to buy in korea,the house price index is about to crash.

[jetrash]

Signs of a crisis are evident in South Korea's housing market, too. After the government announced a barrage of hardline anti-speculation measures in the latter half of 2006, the local housing market fell into the doldrums. An oversupply of apartments is increasingly serious in provincial areas. They are the result of massive building outside the capital area to bypass regulations. As of October, the number of unsold apartments nationwide exceeded 100,000 units, and the slump actually felt by the local contractors appears to be far more painful.



With the problem of unsold apartments gradually spreading northward to the Seoul metropolitan area, the housing slump doesn't appear to be a temporary phenomenon caused by government price controls. With several mid-tier contractors already forced out of business in provincial regions, concerns are rising over a Korean version of the U.S. subprime mortgage crisis that would squeeze real estate project financing, asset-backed securities and asset-backed commercial paper.



Lenders, apparently recognizing the weaker environment, have raised rates on home loans to 8 percent from the high 5-percent range. As a result, there is a growing possibility that demand will erode further, which may lead to a sharp fall in housing prices to reach sales.



Local housing prices are vulnerable to a sudden shock, meaning that they could suddenly go into free fall. If the number of people wanting to sell houses to cope with financial distress rises rapidly, housing prices could fall below optimum levels, though temporarily. Given the low level of household financial assets, it is impossible for homeowners faced with decreasing home equity and rising debt to overcome the burden of mortgage payments by selling financial assets.

http://www.koreafocus.or.kr/economy/view.asp?volume_id=68&content_id=101847&category=B



[ Korea Economic Daily, December 17, 2007 ]

[OneWayTraffic]

There's no oversupply of housing in Seoul though is there? It's very hard to find a decent place here. Unsold apartments outside the city should affect prices here about as much as the WestCoast affects Auckland or about as much as Louisanna affects Manhattan for you Americans out there.

While I'd agree on the situation outside the city, for as long as we have pretty much half of the countries population living and working here, there will be upwards pressure on prices.

When Korea's population begins to decrease though, all bets are off.

[xpat]

Before buying, think about what is happening in the U.S. and remember, "When there's blood on the streets, buy property."
Nothing wrong with buying pennies on the dollar, or Won in this case, if someone's despearate enough to sell that low.