First-time home purchases by people in their 20s and 30s hit a nearly five-year high in Seoul in July, as rising “jeonse” rental costs and relatively accessible mortgage financing encouraged more young renters to enter the housing market, government data showed Wednesday.
According to the Supreme Court’s real estate registration data, 7,547 first-home purchases were recorded in the capital city last month, the highest monthly figure since November 2021.
2. How is this related to the sub
(1) Housing crisis: The collapse of “Jonse” rental system is driving young people buy home prematurely.
Maximilianne on
As a foreigner, jeonse seems insane, the renter borrows the housing cost (minus any deposit they saved up,so say 80% is borrowed), hands it over to the landlord, the renter pays interest to the bank, and the landlord invests the money and charges the renter no rent. But like ultimately this is just a convoluted way for banks to lend money to landlords, cause sure the tenant pays,but ultimately you gotta charge the tenant based on the credit worthiness of the landlord anyway so you aren’t avoiding risk
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1. Summary
First-time home purchases by people in their 20s and 30s hit a nearly five-year high in Seoul in July, as rising “jeonse” rental costs and relatively accessible mortgage financing encouraged more young renters to enter the housing market, government data showed Wednesday.
According to the Supreme Court’s real estate registration data, 7,547 first-home purchases were recorded in the capital city last month, the highest monthly figure since November 2021.
2. How is this related to the sub
(1) Housing crisis: The collapse of “Jonse” rental system is driving young people buy home prematurely.
As a foreigner, jeonse seems insane, the renter borrows the housing cost (minus any deposit they saved up,so say 80% is borrowed), hands it over to the landlord, the renter pays interest to the bank, and the landlord invests the money and charges the renter no rent. But like ultimately this is just a convoluted way for banks to lend money to landlords, cause sure the tenant pays,but ultimately you gotta charge the tenant based on the credit worthiness of the landlord anyway so you aren’t avoiding risk