Korean Job Discussion Forums

[pangaea]

I was reading some of the key money amounts needed for an apartment in Seoul on another thread and I am apalled. 50,000,000-130,000,000 won?? As in $45,000-$115,000 USD? I know things are done differently here and I don't know anything about property values here, but that seems like the worst kind of insanity to me. I can't imagine handing over that amount of cash to a landlord so they could...do what with it exactly? What happens if they go bankrupt? Spend it? Gamble it away? Lose it on bad investments? Is there any kind of insurance system here to guarantee that you will get your deposit back at the end of your lease? Also, if people have that kind of money, can't they buy a house or apartment? Maybe not in Seoul but the outskirts or a smaller city?

Just wondering. With the US equivalent of 130,000,000 won, I could pay off my present student debt, put myself through a Master's program, buy a small house and a car, and basically start over on a more stable footing.

Anyway, back to my question. Are there any places in Seoul or a satellite city that require reasonable deposit amounts? Something between 1,000,000 and 10,000,000 won?

[tottenhamtaipeinick]

[Vagabundo]

what you are forgetting about the key money stuff is that when you are putting up big key money, you are usually NOT paying any rent.

You are in effect, borrowing money to the landlord for them to "invest".

They're responsible for returning to you the original principal.

So what you're really missing out on is what you'd make interest wise if you had that money sitting in the bank. (of course you could buy stocks, etc, but that carries risk of loss)

when I really think about it, it sounds me to me like a pretty good deal for the renter, especially given today's low interest rates.

[tottenhamtaipeinick]

They tend to say you can pay 5mil - 10mil - 20mil + key money and they will knock 50,000-100,000 won off. Which is pretty stupid considering you add up the value of a months rent paying 50,000 more is scraps. In the course of a year you put that US $5,000-$10,000 in investments or keep it in your savings interest account you make more (MUCH MORE!!!) and you safely know that some landlord isnt going to make off with your money.... Though some people on Daves are looking at being in Korea for the long run say putting down 65,000,000won or so and they dont have to pay any rent for 2 years.... well this is true and seems to be a good option if you are trying to save a bit of money to purchase your own place. Thats how I look at it though I am still trying to get my head around Korea's Property market especially since I am a developer here. It is of great interest since they have a very unique way of renting places.....

[enchoo]

Gangnam is a living ripoff unless the academy is footing the key deposit.
I used to live in an officetel one-room in Cheonho for down payment of 10million and monthly of 500,000. The cheapest one room apartment are in Shihwa Dangji for 1million key deposit and 100,000 monthly if you happen to work near Ansan or Anyang/Pyongcheon or if you are willing to travel a long distance.

Hope this helps.

[Vagabundo]

let's do the math.

what are banks paying out on CD's or longer term deposits these days?

what do you get in Korea on say a 2 year CD?
4%?

if so ... then at 50,000 USD , that's 2000 USD.

over the course of the year.. that's what you're paying in "rent" .

2000/12 = 167 USD a month.

Dirt dirt cheap. If you're not paying any rent on top of key money, why would any landlord take any less than 100,000 USD? Even then it's a bargain.

[tottenhamtaipeinick]

[tottenhamtaipeinick]

interest 4%? My savings accounts are linked with shares and get 6.51% plus another account with an initial $25,000 at 6.75%...

But anyway I see some key money is low and that is good ! I dont want to leave money in Korea especially if I choose to leave!

[Jake_Kim]

전세 ≠ 월세

The latter is a typical 'deposit + monthly rent' deal. The former is the deal with 'huge deposit + zero rent' in which the deposit is set around 40~50% (or higher in some neighborhoods) of the market value of the property.

[tottenhamtaipeinick]

wow really that is 40-50% (90mil - 130mil?)... Hmm if that is so Seoul properties are cheap for an international city. Now I am interested. Going on how Seouls current condition though returns on property would be going down. Is this correct? Is anyone here investing in the Korean property market?

[Jake_Kim]

[Vagabundo]

[nathanrutledge]

[FDNY]

You can get a new 50 pyong 3 bedroom/2 bathroom place in Bucheon for 230,000,000KRW key money and no monthly rent. Of course you have to share the Korean dream of living in a 20 storey concrete box. Actually saving money for this sort of thing is a good idea. Then when you're older you can blow this country and live for MUCH less in a MUCH nicer country. Many many things in Korea are a rip-off. Real estate and quality of life are at the top of the list.

[tardisrider]

[quote="nathanrutledge"]