Korean Job Discussion Forums

tonyvu · Posted: Thu Jul 21, 2011 6:59 pm Post subject: Finding own apartment

What's the process when dealing with the realtors/landlords? I was offered a place that's worth 450,000 won per month and the deposit is 1million. Is it normal to negotiate a different rate? Im looking to pay less rent (maybe pay 300,000 instead) while offering a 2million deposit.

Ave, L�cifer · Joined: 22 Feb 2010 Location: Busan

It seems the rule of thumb with key money/deposit is that 5 million is standard but it goes higher in increments of 5 million. so you could put down 1/3/5/10/15/20 million, depending on the place.

I found a place last week that was 450 000 a month with the standard 5 million deposit, I said I am willing to put 10 million down and it was lowered to 400 000/month (15 pyeong/17th floor). In my experience that is the norm, for every extra million you put down for the deposit you get 10 000 knocked off your rent. Which works out better than leaving it with the bank to gain interest as you're effectively saving 120 000 won a year for 1 million put down.

Also you don't have to pay the entire deposit until the day you actually move in, so I'm relying on funds coming in at the end of my contract, renewal bonus etc. I had to transfer 10% of my deposit the day I agreed to the contract and the rest will be paid the day we arranged for me to move in.

edit: ah right this is tony.

Kyle here, my place was in Seomyeon near Lotte dpt store. I reckon you're probably not gonna get value for money in terms of rent if you're only putting a million down for the Seomyeon area, that's what you're looking for, right?

Unless you're not doing it through an estate agent, which means you might have struck a golden deal or something. My estate agent fee was 350 000.

Lazio · Joined: 15 Dec 2010

scooter44 · Joined: 06 Jul 2011 Location: California

I'm new to this as well: what are the chances you get the whole deposit back? Here in the states, especially in the college areas, landlords are known for taking a big chunk of your deposit for cleaning and such.

hapkido1996 · Joined: 05 Jul 2011 Location: Anyang, Gyeong-gi

scooter44, from what I understand, landlords disappearing with your $$ used to be a big worry, but in the last couple of years the laws and regulations have made that pretty much a non-issue, unless you trash the place.

This is my first time to rent in 15 years of living in Korea. I put down 30 mil 전세 and pay 350k/mo for a 21 평, 2nd-floor villa in 안양. Location is everything.

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

Swampfox10mm · Joined: 24 Mar 2011

In this current market, I doubt you'll be able to adjust your monthly with more deposit. To do that, you typically need to add another 10 million deposit to lower your monthly pay by 100,000 won. Even still, most landlords are in it for higher rent money these days.

Ave, L�cifer · Joined: 22 Feb 2010 Location: Busan

Lazio · Joined: 15 Dec 2010

jeremysums · Joined: 08 Apr 2011

Has it gone up recently, sound a little high.

zappadelta · Joined: 31 Aug 2004

hapkido1996 · Joined: 05 Jul 2011 Location: Anyang, Gyeong-gi

zappadelta · Joined: 31 Aug 2004

zappadelta · Joined: 31 Aug 2004

Ah sorry, that other poster was you, haha.

hapkido1996 · Joined: 05 Jul 2011 Location: Anyang, Gyeong-gi

What I learned from my gf was that the pure forms of 월세 and 전세 are being taken over by a hybrid system in which you pay higher 보증금 for lower monthly rent and vice versa. I think this is the effect interest rates are having on the real estate market, but I'm not one to keep up with that sort of thing. Maybe someone else can fill in some details.