Korean Job Discussion Forums

[swinewho]

The question is:

Suppose I pay X amount for an apartment, and 10-20-30-40-50 years down the line the apartment complex becomes old, run down ect ect....

What happens?

I guess the value of the apt would decrease, but at some point the apartment complex is going to have to come down - Of course I wouldn't own the land...

Not to mention the questionable build quality of some apartments?

I asked a Korean friend who has just moved into his new apt, and he said 'sell it and buy another one' - but surely the value would have decreased if it's old and run down....= lost money.....?

But if it's in a prime location surely at some point the constrution company is going to have to 'bulk buy' the apartment complex to tear it down to build on said 'prime location'......

In the Uk some places are 'free hold' where you buy the house/apt and not the land - normally 100 years or so, does Korea do a similar thing?

Can someone enlighten me please?

[nathanrutledge]

Remember, in English, people don't "own" apartments. You only rent an apartment. Korea has condominiums.

So you DO own the land, or at least a share in the corporation that owns the land, and you own your particular unit.

When the apartment gets old, they tear them down and rebuild them. Generally, they do this in a way that the value increases, and they add extra units as well, selling them to new people to offset the cost of rebuilding the place.

Depending on the arrangement, sometimes the people who live there have to pay money, othertimes they don't. If it's a big expensive project and you can't afford to pay your share, them you have to sell and leave.

Also, while they tear it down and rebuild it, you are homeless.

It's a decent enough system with some ups and downs. If you can afford it, great. if not, you lose your house.

It's decided by a vote, something like 80% have to agree to it. Might depend on the complex how they vote.

Anyway, that's all I know from my lawyer friend who is waiting for his apartment to be demolished/rebuilt.

[swinewho]

Interesting - thanks! Makes sense I suppose.