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Korean Job Discussion Forums
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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 Posted: Sat Feb 19, 2005 6:05 pm Post subject: |
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| Ya-ta Boy wrote: |
According to the rules, the landlord must deposit the money and have it available when you move out at the end of the lease. Everyone has heard of cases where that was not done. Courts favor the renter on this point.
There is a standard formula used in determining key money and rent. Ask an adult Korean for the formula. |
I didn't know there was a standard formula. I thought the amount of key money was a result a good-natured haggle over ale. It seems to be between 40 and 60% of the sale value of the property.
I am thinking of converting my present monthly rental (2,300,000 KRW) to key money, probably around 180 or 200,000,000 KRW |
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Drakoi
Joined: 26 Sep 2003
Location: The World
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| Posted: Sat Feb 19, 2005 9:20 pm Post subject: |
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MOD EDIT
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think "key money" is a misnomer, a Japanese concept that involves a sizable moving-in fee that you never get back. What youre referring to is cheonsae, a deposit from which the landlord draws the interest as "rent" & then returns in full at the end of the lease, typically a 2-year agreement.
Up until recently, cheonsae alone was a common arrangement, but interest rates have been at historic lows, so cheonsae has risen accordingly or landlords require weolsae (monthly rent) as well. So yeh, the bigger the cheonsae, the lower the weolsae. This type of deal is usually for one year, then its the tenant's prerogative to renew for a 2nd year on the same terms.
If you fulfill your lease agreement (& give considerate notice -- a couple months is usual) then youre entitled to your deposit back at the time you leave. If you leave early, youre on the hook for the remainder of your lease unless you or the landlord finds a new tenant.
Its common practice & an excellent idea to check out the status of the owner & property at city hall or your local gu office before dishing out millions of won. Liens or outstanding taxes are definite red flags. If the owner goes bankrupt while holding your money, theres some kind of govt insurance but you could bank on that being a major hassle.
Sorry, cant help with going rates in Seoul. |
What he said. Rates in seoul vary. North of the river is pretty cheap, Kangnam usually 5,000,000 or 10,000,000 is pretty standard for the deposit and then another 4-6 hundred per month for a one or two room.
If you don't feel like you can trust people, there's this thing called insurance that others have posted about. And cheunsey is when you only pay the deposit, weolsey is what you pay monthly. The deposit itself is called a bochumgeum or something like that if you're looking on a korean website. |
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SuperHero
Joined: 10 Dec 2003
Location: Superhero Hideout
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| Posted: Sun Feb 20, 2005 12:52 am Post subject: Re: Help me unravel the mystery of key money |
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| Kenny Kimchee wrote: |
| SuperHero wrote: |
| Kenny Kimchee wrote: |
| -Is it possible to put enough key money down until your rent becomes zero? |
Yes, I put down 120,000,000 down and pay zero monthly. |
120 million? What kind of flat are we talking about here? |
24 pyoung apartment 14th floor, parking, guard adjossi, 3 bedrooms and a balcony - 5 years old |
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Penny
Joined: 04 Dec 2004
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| Posted: Sun Feb 20, 2005 1:06 am Post subject: Help unravel "key money" |
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| I don't know about elsewhere but in my neighborhood, songpa-gu, 30+ pung goes for around 160,000,000 key money in order to have 0 rent. To out-right buy it would cost around twice that so I'm guessing maybe 1/2 the selling price for key money? |
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Cymro
Joined: 11 Jun 2004
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| Posted: Sun Feb 20, 2005 1:56 am Post subject: |
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I've just been apartment-hunting in Seoul for the first time, and it's been really fun and a great learning experience. But, the best part, I've done incredibly well!
Saturday morning: Walked into a realtor's office and said I had 30m won available in key money and he said I wouldn't get a small one-room.
Sunday night: I've seen a bunch of places and narrowed it down to three:
Plan A: A very nice 30-pyong half-basement with three bedrooms, a bathroom (literally), very spacious kitchen/living area and a small laundry room. 35m won key money and 100k monthly.
Plan B: A remodelled half-basement with three bedrooms, a living room, a low-ceiling bathroom and a new kitchen, totalling 26-pyong (excluding the nice roofed yard that's accessed only by a 3-foot high door from the living room). 35m won key money, no monthly.
Plan C: A brand-new 3-bedroom apartment (24-pyong) on its own on the third floor above an unopened coffee shop and a very quiet restaurant behind a mortuary. 30m key money and 250k monthly.
The decision will be made tomorrow morning.
Apparently, monthly rent is thought to be as good as 1% of the key money. So if a place asks 60m key money, you could pay 40m and 200k monthly, if they agree. |
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