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Swampfox10mm
Joined: 24 Mar 2011
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 Posted: Wed Mar 13, 2013 8:29 pm Post subject: Starting to wonder if the housing crash has secretly begun |
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We purchased a home in a decent -- not top -- decent area of Seoul this week. We have been looking for the past three weeks or so. Was amazed to buy the place and negotiate them down a full 15% off of the asking price. We were instucted by everyone involved not to tell people in the building what we paid, as "... They would be very upset."
After searching these past few weeks, it seemed like sellers are, in some cases, becoming quite desperate.
I have a feeling that prices, which stopped rising recently and held for a while, are beginning to drop. |
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optik404
Joined: 24 Jun 2008
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| Posted: Wed Mar 13, 2013 9:08 pm Post subject: |
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| Prices have been falling for quite a while. No one is buying and landlords are trying to rent them out. My kr friend was looking at a apt. First they wanted 900K, then 750K, then 600K. Owners are getting desperate. |
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slothrop
Joined: 03 Feb 2003
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| Posted: Wed Mar 13, 2013 9:21 pm Post subject: |
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edit
Last edited by slothrop on Sun Apr 07, 2013 3:54 am; edited 1 time in total |
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goreality
Joined: 09 Jul 2009
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| Posted: Wed Mar 13, 2013 9:33 pm Post subject: |
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| They don't want to admit the party is over, the economic consequences are daunting. |
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Steelrails
Joined: 12 Mar 2009
Location: Earth, Solar System
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| Posted: Wed Mar 13, 2013 9:42 pm Post subject: |
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| Cue 'Price is Right' horns of defeat. |
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slothrop
Joined: 03 Feb 2003
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| Posted: Wed Mar 13, 2013 9:50 pm Post subject: |
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edit
Last edited by slothrop on Sun Apr 07, 2013 3:55 am; edited 1 time in total |
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darkjedidave
Joined: 19 Aug 2009
Location: Shanghai/Seoul
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| Posted: Wed Mar 13, 2013 10:10 pm Post subject: |
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| 5 years ago in my area, housing was listed for 4-5 million won a month, now it's advertised at 2.5 |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Wed Mar 13, 2013 10:35 pm Post subject: |
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| Quote: |
Meanwhile, experts warn that Park�s people�s happiness fund could encourage indebted households to intentionally delay repaying loans. |
This will just amount to kicking the can down the road with gov't money. |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Wed Mar 13, 2013 10:51 pm Post subject: |
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| slothrop wrote: |
http://www.koreatimes.co.kr/www/news/biz/2010/09/123_71063.html
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Battered and bruised, Korea�s stumbling real-estate market breathes heavily on the ropes. Now, the possible collapse of a mega-development project in Seoul threatens to knock it out cold.
It appears that all hands are ready to bail on the ``Yongsan International Business Zone�� project, a 31 trillion won ($27 billion) job that was to represent the country�s largest single property scheme ever.
The derailment of the Yongsan development project will have a devastating effect and not least among the victims will be the many individuals who stretched themselves thin to buy homes and land in neighboring areas with the dreams of making a fortune |
this is going to have major repercussions. |
Article is 2.5 yrs old. |
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slothrop
Joined: 03 Feb 2003
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| Posted: Wed Mar 13, 2013 11:17 pm Post subject: |
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edit
Last edited by slothrop on Sun Apr 07, 2013 3:55 am; edited 1 time in total |
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Captain Corea
Joined: 28 Feb 2005
Location: Seoul
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| Posted: Thu Mar 14, 2013 1:01 am Post subject: |
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| For a crash, I feel like there needs to be some movement. So far, I get the impression that everything has stalled on all sides. |
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Jimskins
Joined: 07 Nov 2007
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| Posted: Thu Mar 14, 2013 1:03 am Post subject: |
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"Secretly begun" ?!
It's been going on for the past 3 years. If you bought anything in Seoul during that time (or now) , you either have an affliction to money or are extremely naive. |
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radcon
Joined: 23 May 2011
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| Posted: Thu Mar 14, 2013 1:21 am Post subject: |
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| Fantastic news. Will wait it out another year or two and then buy a nice place in Seoul. |
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tran.huongthu
Joined: 23 May 2011
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| Posted: Thu Mar 14, 2013 2:16 am Post subject: |
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| Swampfox10mm wrote: |
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Meanwhile, experts warn that Park�s people�s happiness fund could encourage indebted households to intentionally delay repaying loans. |
This will just amount to kicking the can down the road with gov't money. |
This man knows his stuff. Further devaluing the Korean Won, which is just what they want anyways. |
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Swampfox10mm
Joined: 24 Mar 2011
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| Posted: Thu Mar 14, 2013 3:17 am Post subject: |
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| Jimskins wrote: |
"Secretly begun" ?!
It's been going on for the past 3 years. If you bought anything in Seoul during that time (or now) , you either have an affliction to money or are extremely naive. |
Well, we looked at it this way...
We drop our cash into Jeonsae, and at 4%, someone else would be making about 10 million won per year off of our cash. Over 4 years, that's 40 million won (if we went Jeonsae). Or, if we did Wolsey, that's money plus rent, and even more in lost income.
The place we're leaving had 140 million Wolsye plus another 600k month in rent. We were throwing away the interest on our life savings (about 550k per month), plus 600k per month rent. So that's nearly 1,200,000 per month we were tossing into someone else's account. Just a few years of that equals likely loses in a crash, anyway. And over the long-term, things would probably bounce back eventually. So we would lose nothing, and not be in fear of our cash. The price of the place may even go up -- who knows?
By purchasing at the discount we did, we wouldn't be losing much in a crash, and we're still not having to give anyone else a single won in our money (or letting OUR money sit in THEIR name if/when a crash happens).
Personally, we have been feeling pretty creeped-out with the idea of keeping our entire life savings into someone else's bank account in these trying times. In fact, to get this money out of our current landlord, we had to hire a lawyer and threaten a lawsuit (and we sure as hell weren't bluffing, either). We even went the extra mile initially and made sure the place we're now leaving had no loans and was fully paid-for. Our landlord had no debt at the time (nothing tracked by the gov't, anyway) and we STILL had to start the wheels of the law turning to get our money out. I cannot imagine what that would be like if there were a massive crash like what happened in the USA -- I doubt we would get our life's savings out in 6 months or less, supposing that a large percentage of the population were affected.
Do the math. If you're planning on being here long-term, then buying, under the right circumstances, is still the smarter option. Now, you may have two to four hundred million laying around that you are using as an investment -- I don't know. I'm going to go out on a limb and assume that you're a teacher and you don't. But in terms of pure investment, then yes, buying now probably is a pretty bad idea.
The people in big trouble are the ones who took out huge loans. We didn't, when you figure in terms of our income. Our loan, in addition to our cash, is manageable, and we'll have it paid-off in four years at the amount we've been saving monthly for the past 5 years. |
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