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edwardcatflap
Joined: 22 Mar 2009
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 Posted: Wed Aug 21, 2013 4:50 pm Post subject: Buying property here with cash |
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Has anyone bought property outright here? I was wondering how easy it is. If there were any questions asked, whether there were any checks on your income etc ...
Thanks |
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giraffe
Joined: 07 Apr 2009
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| Posted: Wed Aug 21, 2013 5:41 pm Post subject: |
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property as in empty land? or property as in House on land or property as in an APT in apt complex?
specify =) |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Wed Aug 21, 2013 5:43 pm Post subject: |
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| property as in an APT in apt complex |
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giraffe
Joined: 07 Apr 2009
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| Posted: Wed Aug 21, 2013 6:15 pm Post subject: |
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Depends What kind of apt your Want...
If its an old apt you buy through a budongsan... Then I dont see you have any problems as long as you can transfer all the money ...
If you want to get a new APT/ do 분양 ( reservation of new yet to be built apts) its alot more complicated.... To get a new apt you need a special housing account from your bank If you even want a realistic chance at getting one of the apts. There are 3 levels of 분양... First priority is someone who has had a housing account matured for 2+ years. Second priority is housing account matured more than 10 months ( somewhere around there) and third priority is someone with NO account or new account. If you have a first priority account and you already own other apts or a really big apt your chances will be lower than someone who has a first priority account with no other apts... Its just how everything works. theres a whole gov section that deals with this stuff...
if you do 분양 you'll have to deal with this website
http://www.apt2you.com/ ( you'll need internet explorer). Website about all the new apt being built . and how to sign up your new apt and what not and how to find out if you were approve/ won an apt..
Its important where you fit in because as you can imagine you can ONLY apply for 1 apt. So Say there are only 500 apts available and 2000 people apply. Everyone with first priority account will have a chance at an apt. Out of those 2000 lets say 300 had a a first priority account. the next 200 apts goes to people with second priority accounts etc.. with 분양 once they sort out who gets an apt.. It's pretty much LOTTO style. You dont pick which floor apt you want. They Randomly pick an apt for you through a lottery style. Everyone pays the same amount ( except those on the first 4 floors). If you're not happy with the floor and apt level YOu can jsut back out before doing payments and your apt will go to someone else..
Within those 3 account levels they also have dozens of apts saved for the Elderly, for families living with grandparents , for new married couples with babies etc...
ALSO keep in mind LH apts are goverment built. Those require a whole different type of account if you want to invest into one...
Usually takes about 2 years to build these apts...
As for payment. It goes out in scheduled sums. roughly 10% every few months. So payments of around 30million won every 3-4 months for 2 years with one big payment of about 30% before moving in. YOu can pay Cash. BUt most borrow from the construction company as a loan. Usually they only loan out 60% and you need to pay 40% from your own pocket. HOWEVER they dont loan out to just anyone. You do need to be approved...
Wife and I just bought a new place through 분양. we didnt know about the account requirements.. So we had to do it through my wife's dads name. Luckily he had a first priority account! We "won" the lottery for an apt and got a 8th floor apt in one of the buildings. We paying cash ( my own money) for all of it through my father in laws account. No loans. We can change the apt from my FIL's name to My name Next YEAR ( theres a 1 year law for these kind of apts... ). We're moving in mid 2015 haha..
That being Said. Yes you can buy an apt with cash provided yu have the right requirements.... but depending on what you want to do its not as easy as just having the cash available. Especially if you want to invest/ buy a new apt through 분양. |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Wed Aug 21, 2013 6:45 pm Post subject: |
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| Thanks for the info. Supposing I have the cash, it's an apartment already owned by someone and they want to sell it to me. Do you know how easy that'd be? When I bought a place back home they asked me a lot of questions about where I'd got the money from and wanted some kind of proof the money wasn't laundered so I was wondering if they'd do the same here. |
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giraffe
Joined: 07 Apr 2009
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| Posted: Wed Aug 21, 2013 7:13 pm Post subject: |
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well Its not like youll be paying the apt with a briefcase full of cash are you ??? or you literally mean you want to pay a 200million won ( or however much the property is) with cash bills???
I think its in your best interest to do these transactions through a bank! Just for the Record of it all....
If its coming out of a bank Than you can sure bet that the korean gov knows where said cash came from and if you paid taxes! IF the money / a large sum of money was wired into your bank account all of a sudden from abroad, Your bank does question/ as you where its from. I receive alot of wires from abroad they call me to ask me what it is..
coming up witht he money is the hard part for most westerners to own apts here in Korea. So once you have the money in bank to pay an apt 100% then the rest should be relatively easy..
Also keep in mind as an apt owner .. you'll pay a crap load of taxes the first year.. soo make sure you at least have 10million won set aside for the owning tax =).... |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Wed Aug 21, 2013 7:19 pm Post subject: |
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| cheers |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sat Aug 24, 2013 8:32 am Post subject: |
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| giraffe wrote: |
Depends What kind of apt your Want...
If its an old apt you buy through a budongsan... Then I dont see you have any problems as long as you can transfer all the money ...
If you want to get a new APT/ do 분양 ( reservation of new yet to be built apts) its alot more complicated.... To get a new apt you need a special housing account from your bank If you even want a realistic chance at getting one of the apts. There are 3 levels of 분양... First priority is someone who has had a housing account matured for 2+ years. Second priority is housing account matured more than 10 months ( somewhere around there) and third priority is someone with NO account or new account. If you have a first priority account and you already own other apts or a really big apt your chances will be lower than someone who has a first priority account with no other apts... Its just how everything works. theres a whole gov section that deals with this stuff...
if you do 분양 you'll have to deal with this website
http://www.apt2you.com/ ( you'll need internet explorer). Website about all the new apt being built . and how to sign up your new apt and what not and how to find out if you were approve/ won an apt..
Its important where you fit in because as you can imagine you can ONLY apply for 1 apt. So Say there are only 500 apts available and 2000 people apply. Everyone with first priority account will have a chance at an apt. Out of those 2000 lets say 300 had a a first priority account. the next 200 apts goes to people with second priority accounts etc.. with 분양 once they sort out who gets an apt.. It's pretty much LOTTO style. You dont pick which floor apt you want. They Randomly pick an apt for you through a lottery style. Everyone pays the same amount ( except those on the first 4 floors). If you're not happy with the floor and apt level YOu can jsut back out before doing payments and your apt will go to someone else..
Within those 3 account levels they also have dozens of apts saved for the Elderly, for families living with grandparents , for new married couples with babies etc...
ALSO keep in mind LH apts are goverment built. Those require a whole different type of account if you want to invest into one...
Usually takes about 2 years to build these apts...
As for payment. It goes out in scheduled sums. roughly 10% every few months. So payments of around 30million won every 3-4 months for 2 years with one big payment of about 30% before moving in. YOu can pay Cash. BUt most borrow from the construction company as a loan. Usually they only loan out 60% and you need to pay 40% from your own pocket. HOWEVER they dont loan out to just anyone. You do need to be approved...
Wife and I just bought a new place through 분양. we didnt know about the account requirements.. So we had to do it through my wife's dads name. Luckily he had a first priority account! We "won" the lottery for an apt and got a 8th floor apt in one of the buildings. We paying cash ( my own money) for all of it through my father in laws account. No loans. We can change the apt from my FIL's name to My name Next YEAR ( theres a 1 year law for these kind of apts... ). We're moving in mid 2015 haha..
That being Said. Yes you can buy an apt with cash provided yu have the right requirements.... but depending on what you want to do its not as easy as just having the cash available. Especially if you want to invest/ buy a new apt through 분양. |
Wow! What a dumb a$$ stupid logical system. In Canada, if you got the cash (and few do), you can buy whatever place you want. Real estate agents will be tripping over you and kissing your ^*(). Pretty straightforward. There's common sense and then there's the Korean way of doing things. As for Condo buildings, higher floors with a view will cost more. Pay more and get more. None of this bullcrap of having an account at your bank for 2 years and hoping to get a higher floor through a lottery system. Remind me to never marry and settle here. Sweet ^&#(()@. Now, I've heard everything. Geeze.
BTW: Not dumping on you personally. Congrats on your new apart. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sat Aug 24, 2013 8:34 am Post subject: |
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| giraffe wrote: |
well Its not like youll be paying the apt with a briefcase full of cash are you ??? or you literally mean you want to pay a 200million won ( or however much the property is) with cash bills???
I think its in your best interest to do these transactions through a bank! Just for the Record of it all....
If its coming out of a bank Than you can sure bet that the korean gov knows where said cash came from and if you paid taxes! IF the money / a large sum of money was wired into your bank account all of a sudden from abroad, Your bank does question/ as you where its from. I receive alot of wires from abroad they call me to ask me what it is..
coming up witht he money is the hard part for most westerners to own apts here in Korea. So once you have the money in bank to pay an apt 100% then the rest should be relatively easy..
Also keep in mind as an apt owner .. you'll pay a crap load of taxes the first year.. soo make sure you at least have 10million won set aside for the owning tax =).... |
Holy crap. Just when I thought it couldn't get any stupider over here. It's great to be an English teacher, but when you're living here for real. Wow! |
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nate1983
Joined: 30 Mar 2008
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| Posted: Sat Aug 24, 2013 3:45 pm Post subject: |
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| giraffe wrote: |
| well Its not like youll be paying the apt with a briefcase full of cash are you ??? or you literally mean you want to pay a 200million won ( or however much the property is) with cash bills??? |
Try using your noggin and figure out which definition the OP is referring to:
cash [kash]
noun
1. money in the form of coins or banknotes, especially that issued by a government.
2. money or an equivalent, as a check, paid at the time of making a purchase.
"Paying in/with cash" is also an extremely common expression used in the real estate market. I hope you were just joking with your question...if not, oh boy. |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Sat Aug 24, 2013 4:04 pm Post subject: |
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| Yes I meant paying directly from a bank account and not having to arrange a mortgage. Has no one done it here? In the UK you buy a place through a solicitor who checks the paper work, arranges a survey etc...and makes some checks on your personal finances. Was wondering if it worked the same way here. |
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radcon
Joined: 23 May 2011
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| Posted: Sat Aug 24, 2013 4:30 pm Post subject: |
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| Weigookin74 wrote: |
| giraffe wrote: |
Depends What kind of apt your Want...
If its an old apt you buy through a budongsan... Then I dont see you have any problems as long as you can transfer all the money ...
If you want to get a new APT/ do 분양 ( reservation of new yet to be built apts) its alot more complicated.... To get a new apt you need a special housing account from your bank If you even want a realistic chance at getting one of the apts. There are 3 levels of 분양... First priority is someone who has had a housing account matured for 2+ years. Second priority is housing account matured more than 10 months ( somewhere around there) and third priority is someone with NO account or new account. If you have a first priority account and you already own other apts or a really big apt your chances will be lower than someone who has a first priority account with no other apts... Its just how everything works. theres a whole gov section that deals with this stuff...
if you do 분양 you'll have to deal with this website
http://www.apt2you.com/ ( you'll need internet explorer). Website about all the new apt being built . and how to sign up your new apt and what not and how to find out if you were approve/ won an apt..
Its important where you fit in because as you can imagine you can ONLY apply for 1 apt. So Say there are only 500 apts available and 2000 people apply. Everyone with first priority account will have a chance at an apt. Out of those 2000 lets say 300 had a a first priority account. the next 200 apts goes to people with second priority accounts etc.. with 분양 once they sort out who gets an apt.. It's pretty much LOTTO style. You dont pick which floor apt you want. They Randomly pick an apt for you through a lottery style. Everyone pays the same amount ( except those on the first 4 floors). If you're not happy with the floor and apt level YOu can jsut back out before doing payments and your apt will go to someone else..
Within those 3 account levels they also have dozens of apts saved for the Elderly, for families living with grandparents , for new married couples with babies etc...
ALSO keep in mind LH apts are goverment built. Those require a whole different type of account if you want to invest into one...
Usually takes about 2 years to build these apts...
As for payment. It goes out in scheduled sums. roughly 10% every few months. So payments of around 30million won every 3-4 months for 2 years with one big payment of about 30% before moving in. YOu can pay Cash. BUt most borrow from the construction company as a loan. Usually they only loan out 60% and you need to pay 40% from your own pocket. HOWEVER they dont loan out to just anyone. You do need to be approved...
Wife and I just bought a new place through 분양. we didnt know about the account requirements.. So we had to do it through my wife's dads name. Luckily he had a first priority account! We "won" the lottery for an apt and got a 8th floor apt in one of the buildings. We paying cash ( my own money) for all of it through my father in laws account. No loans. We can change the apt from my FIL's name to My name Next YEAR ( theres a 1 year law for these kind of apts... ). We're moving in mid 2015 haha..
That being Said. Yes you can buy an apt with cash provided yu have the right requirements.... but depending on what you want to do its not as easy as just having the cash available. Especially if you want to invest/ buy a new apt through 분양. |
Wow! What a dumb a$$ stupid logical system. In Canada, if you got the cash (and few do), you can buy whatever place you want. Real estate agents will be tripping over you and kissing your ^*(). Pretty straightforward. There's common sense and then there's the Korean way of doing things. As for Condo buildings, higher floors with a view will cost more. Pay more and get more. None of this bullcrap of having an account at your bank for 2 years and hoping to get a higher floor through a lottery system. Remind me to never marry and settle here. Sweet ^&#(()@. Now, I've heard everything. Geeze.
BTW: Not dumping on you personally. Congrats on your new apart. |
Before you condemn Korea you should know the whole story. The "dumb a$$ stupid logical system" sic only refers to high rise apartments that are not yet built. If you had not noticed Korea is a densely populated country with housing at a premium. This system is the govt attempt to make sure everyone can have a place and that housing is not concentrated in the hands of the wealthy.
Villa style apartments and houses are not subject to this. And already built and owned apartments are sold just as they are back home. |
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radcon
Joined: 23 May 2011
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| Posted: Sat Aug 24, 2013 4:33 pm Post subject: |
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| Weigookin74 wrote: |
| giraffe wrote: |
well Its not like youll be paying the apt with a briefcase full of cash are you ??? or you literally mean you want to pay a 200million won ( or however much the property is) with cash bills???
I think its in your best interest to do these transactions through a bank! Just for the Record of it all....
If its coming out of a bank Than you can sure bet that the korean gov knows where said cash came from and if you paid taxes! IF the money / a large sum of money was wired into your bank account all of a sudden from abroad, Your bank does question/ as you where its from. I receive alot of wires from abroad they call me to ask me what it is..
coming up witht he money is the hard part for most westerners to own apts here in Korea. So once you have the money in bank to pay an apt 100% then the rest should be relatively easy..
Also keep in mind as an apt owner .. you'll pay a crap load of taxes the first year.. soo make sure you at least have 10million won set aside for the owning tax =).... |
Holy crap. Just when I thought it couldn't get any stupider over here. It's great to be an English teacher, but when you're living here for real. Wow! |
I'd much rather pay 10 million upfront and virtually no property tax in the future than pay 5 to 10,000 dollars each and every year in property tax forever as its done in the US. |
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12ax7
Joined: 07 Nov 2009
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| Posted: Sat Aug 24, 2013 5:02 pm Post subject: |
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| radcon wrote: |
| Weigookin74 wrote: |
| giraffe wrote: |
Depends What kind of apt your Want...
If its an old apt you buy through a budongsan... Then I dont see you have any problems as long as you can transfer all the money ...
If you want to get a new APT/ do 분양 ( reservation of new yet to be built apts) its alot more complicated.... To get a new apt you need a special housing account from your bank If you even want a realistic chance at getting one of the apts. There are 3 levels of 분양... First priority is someone who has had a housing account matured for 2+ years. Second priority is housing account matured more than 10 months ( somewhere around there) and third priority is someone with NO account or new account. If you have a first priority account and you already own other apts or a really big apt your chances will be lower than someone who has a first priority account with no other apts... Its just how everything works. theres a whole gov section that deals with this stuff...
if you do 분양 you'll have to deal with this website
http://www.apt2you.com/ ( you'll need internet explorer). Website about all the new apt being built . and how to sign up your new apt and what not and how to find out if you were approve/ won an apt..
Its important where you fit in because as you can imagine you can ONLY apply for 1 apt. So Say there are only 500 apts available and 2000 people apply. Everyone with first priority account will have a chance at an apt. Out of those 2000 lets say 300 had a a first priority account. the next 200 apts goes to people with second priority accounts etc.. with 분양 once they sort out who gets an apt.. It's pretty much LOTTO style. You dont pick which floor apt you want. They Randomly pick an apt for you through a lottery style. Everyone pays the same amount ( except those on the first 4 floors). If you're not happy with the floor and apt level YOu can jsut back out before doing payments and your apt will go to someone else..
Within those 3 account levels they also have dozens of apts saved for the Elderly, for families living with grandparents , for new married couples with babies etc...
ALSO keep in mind LH apts are goverment built. Those require a whole different type of account if you want to invest into one...
Usually takes about 2 years to build these apts...
As for payment. It goes out in scheduled sums. roughly 10% every few months. So payments of around 30million won every 3-4 months for 2 years with one big payment of about 30% before moving in. YOu can pay Cash. BUt most borrow from the construction company as a loan. Usually they only loan out 60% and you need to pay 40% from your own pocket. HOWEVER they dont loan out to just anyone. You do need to be approved...
Wife and I just bought a new place through 분양. we didnt know about the account requirements.. So we had to do it through my wife's dads name. Luckily he had a first priority account! We "won" the lottery for an apt and got a 8th floor apt in one of the buildings. We paying cash ( my own money) for all of it through my father in laws account. No loans. We can change the apt from my FIL's name to My name Next YEAR ( theres a 1 year law for these kind of apts... ). We're moving in mid 2015 haha..
That being Said. Yes you can buy an apt with cash provided yu have the right requirements.... but depending on what you want to do its not as easy as just having the cash available. Especially if you want to invest/ buy a new apt through 분양. |
Wow! What a dumb a$$ stupid logical system. In Canada, if you got the cash (and few do), you can buy whatever place you want. Real estate agents will be tripping over you and kissing your ^*(). Pretty straightforward. There's common sense and then there's the Korean way of doing things. As for Condo buildings, higher floors with a view will cost more. Pay more and get more. None of this bullcrap of having an account at your bank for 2 years and hoping to get a higher floor through a lottery system. Remind me to never marry and settle here. Sweet ^&#(()@. Now, I've heard everything. Geeze.
BTW: Not dumping on you personally. Congrats on your new apart. |
Before you condemn Korea you should know the whole story. The "dumb a$$ stupid logical system" sic only refers to high rise apartments that are not yet built. If you had not noticed Korea is a densely populated country with housing at a premium. This system is the govt attempt to make sure everyone can have a place and that housing is not concentrated in the hands of the wealthy.
Villa style apartments and houses are not subject to this. And already built and owned apartments are sold just as they are back home. |
Actually, I've bought a large apartment that wasn't built yet (I've since sold it) and I didn't have to do the whole 분양 thing. Maybe the 분양 system is only how things are done in the larger metropolitan areas, namely Seoul. I know it exists there to real estate speculation, but it only feeds the frenzy in my opinion, playing on Koreans' competitive nature. I don't know if it applies to apartments, too, but there's also a law which stipulates that you must pay a 20% tax on whatever profits you make from selling a building if it is sold within the first 2 years of its purchase. |
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Captain Corea
Joined: 28 Feb 2005
Location: Seoul
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| Posted: Sat Aug 24, 2013 5:24 pm Post subject: |
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| edwardcatflap wrote: |
| Thanks for the info. Supposing I have the cash, it's an apartment already owned by someone and they want to sell it to me. Do you know how easy that'd be? When I bought a place back home they asked me a lot of questions about where I'd got the money from and wanted some kind of proof the money wasn't laundered so I was wondering if they'd do the same here. |
I don't think they'd ask where ya got the money. Just be prepared for transfer fees and such.
But having LARGE amounts of funds at the ready is simply not as suspicious here. |
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