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maddog
Joined: 08 Dec 2005
Location: Daegu
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 Posted: Tue Oct 02, 2007 2:45 am Post subject: How does key money work? |
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What is the deal with key money? Is it like a deposit? Do you still pay monthly rent on top? What is a reasonable amount (YBM offer 10M)?
Cheers for any info.
MD |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Tue Oct 02, 2007 3:31 am Post subject: |
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| What is the deal with key money? Is it like a deposit? Do you still pay monthly rent on top? What is a reasonable amount (YBM offer 10M)? |
Yes, key money is very much like a deposit. The idea is that you fork over mega-bucks and get it back at the end. It usually works the way it is planned. But not always.
It has been known to happen that the rentee has spent the money in the meantime and the renter has to wait for a new renter to appear to get the key money back. There are laws against this, but then there are laws against prostitution, too.
Whether you would pay rent depends on the size of the apartment. Ten million should get you a shoe box in Seoul. Outside Seoul, it can get you a three bedroom place. It all depends.
Ask to see the place under consideration.
PS: There is a set formula for the amount of key money and the amount of monthly rent one should pay. Ask about this if the phrase 'monthly rent' comes up. |
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GoldMember
Joined: 24 Oct 2006
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| Posted: Tue Oct 02, 2007 4:39 am Post subject: |
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You give a heap of money to a person who you don't know, and who's credit history/finances you don't know either.
They then spend the money on hookers, booze, and gambling.
You move into their property. One year later you move out of the property.
You try to get your deposit back. Owner of property doesn't have the money to give back to you.
Property is mortgaged up to the hilt. You are stuffed!
Ask yourself this? Am I in the unsecured, lending to deadbeats at no interest, business?
In the US there are sub prime mortgages. In Korea ALL mortgages are sub prime, as banks lend with no consideration of the ability of the borrower to service a loan.
Remember it's VERY hard to collect debts in Korea, and nearly impossible if you are not Korean. |
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