Korean Job Discussion Forums

[holden_caulfield]

Hi,

What type of investments do landlords stick the Key Money into to offset the lower rent each month? Are these investments really risky?

HC

[Cheonmunka]

One way: Landlords can use them as capital for purchasing the house. For ex, five villas in the block - total choneseis, say, 350k at 70k each. Purchase price say, 400k or more. Make up the difference oneself of 50k or more, but can purchase with no loan at all. Prob may come when tenant moves out and ll has to pay out with a few days before he/she gets the next tenant's dough.

Can see why capital gain is so rampant in this country, considering that's the only way for ll's to get a return.
Should have invested like this five years ago. Now is not so good unless you are in a new burgeoning area or redevelopment location.