Korean Job Discussion Forums

[makemischief]

i've done a search and pulled up a few threads on getting one with an f2, but as i have no wife on the immediate horizon i though i'd ask:

does anyone have experience buying an apartment with a mortgage in korea? specifically seoul.

i'm curious about suggested banks, procedure, etc. i know some banks are more "foreigner friendly" for loans and such things so any hints on where to start asking questions would be GREAT.

and yes, i respectfully realize that many think this is a horrific idea. i'm well aware of that

cheers and thanks~

[phoneboothface]

Sorry can't help. But I am interested as well if anyone has had any luck with this.

I tried before, one place looked at my like I had 4 heads instead of my usual 2. Another gave me the big forearms crossed in front of the face forming an X. God I hate it when people do that. I even asked in Korean.

[Otherside]

Chances, almost zero.

Really, for you to get a Mortgage is a bad idea for all involved.

From the bank's perspective, on an E-2 visa, you offer very little security. If you were to lose your job, not only would you be unemployed, you'd have a 2 week exit order. Secondly, as a mortgage is a long-term loan, who knows what the visa requirements status will be in 2,5 or even 10 years from now? Since the credit crunch banks are being much more "responsible" with their lending, and giving a loan to a gut with no (or very few) ties to the country is plain irresponsible. The only way that they might consider you is if you put a large deposit down (i.e. 50%). Then again, from what I've heard, Korean banks usually demand much higher deposits than in the West, so that may be a moot point.

Secondly, and this effects both you and the bank. There have been lots of rumours/reports that the Korean housing market is heavily overvalued (by as much as 40%) and is due for a "correction". From the bank's point of view, you could buy a property and find yourself facing a heavy loss, and it may just be easier to skip the country, footing them with the bill. From your point of view, are you as an ESL teacher willing to invest a huge portion of your savings on the Korean housing market, knowing that as an E2 visa holder, you may not have a long-term horizon to ride out the bad times.

[makemischief]

Thanks Phoneboothface- hopefully this will get a few answers.

Thanks Otherside. I'm aware of these factors, but I appreciate it being laid out there for those who are not. Very good to have it all on the table.

Has anyone had first-hand experience with this beyond speculation? I know it is at least hypothetically possible...or was 15 years ago, as I know one person who did buy an apartment with a mortgage and no f2 or f4....however a lot has changed since then I imagine (in other words I asked him and he had no clue where to look now).

Cheers and thanks again.

[Bibbitybop]

I would love to hear some stories about this, both the successful and the failed.

[makemischief]

Similar discussion here- http://forums.eslcafe.com/korea/viewtopic.php?t=156274&highlight=
albeit with the f2 advantage. anyone know?

or at the very least: anyone aware of which banks are the most "foreigner friendly"? that would be a great starting point, and i know recently some banks have been courting that image.

[makemischief]

Bit out of date, but a number of interesting and conflicting opinions on getting a mortgage: http://www.korealawblog.com/entry/koreas_own_coming_mortgage_crisis

[makemischief]

Word from the Seoul Global Center (not sure of the veracity, but they've been right and quite helpful before):

[belovedkang]

My (Korean) husband contacted a bank (sorry not sure which one) in Korea and was told that we would not be allowed to get loans of any kind when we relocate to Korea. He'll be on an F4 visa and I'll be on an E2.

[Teelo]

Last I heard, foreigners can't buy properties or apartments in korea?

[yeremy]

We can buy property in Korea. My wife (F4 visa) and I (E2) tried to buy an apartment in our rural city but decided to wait because the credit terms were not favorable. We can borrow money but for only up to 60% of the apartment's price, in our case. And the interest rate was higher than if we were Korean. My wife was born in Korea but at the time she held an F4 visa but since then she has applied and been accepted to regain her Korean nationality afterwhich she will be able to get better financing.

And, we bought a new car a year and almost six months ago. We had to put the title in my wife's name because I'm not Korean and we had some trouble getting the most favorable financing, so one of our brothers-in-laws co-signed for us and the auto dealer helped us to get financing. We also put down a sizeable downpayment on the car, too. Don't think that you're going to get a chance to buy a car with zero money down.

Final postnote:

Samsung salesman to me: "I will never forget you. You are the first foreigner to buy a car from this dealership and from me as a salesman."


Me to the salesman: "Thank you."

[roknroll]

[yeremy]

What's the problem? We bought a 2008 SM5 and it barely has 10,000 miles on it. Legally my wife did buy the car, but it was and is my income that pays for it. The car we bought is as much mine as it is hers. That Samsung dealership wouldn't let me put the car in my name even though I put ten million won down. I think the point is that more of us, who have the means and the need, need to buy cars and apartments, so that we can slowly change how people here look at us.

We also went to look at an apartment complex in the city we live in this afternoon. We want to buy a 48 pyoung apartment. Money speaks louder than even actions in Korea. It always seems to be about the money when it comes to buying cars or apartments. We went to a local real estate agency to inquire about buying such an apartment. As I understood it, banks will only lend up to 70% of the price of an apartment but they won't lend you the money for the closing costs, which you have to pay yourself. So, if we do make a move for sucn an apartment, we will have to put down 90 million won and then take out a loan for the rest.

The point is that it is possible for us (foreigners) to buy property but the system is different and they want to see the money--sometimes lots of it.

[pkang0202]

I wonder if the bank would give a 10 million won loan, payable in 2 years, to an F visa holder?

10 million won isn't a whole lot of money, and a 2 two year payment schedule isn't too bad. I think something like that would be great for people who want to secure their own temporary housing, without having to come up with the deposit.

[Bibbitybop]

Foreigners can buy and own property, at least apartments and vehicles. And no only gyopos or people married to Koreans.