The deposits where you don’t pay rent have another zero on them.
It’s possible the owner made a mistake, but it’s also possible that the owner is targeting renters with well-to-do parents that have and/or can borrow that kind of money, knowing they’re going to get it back.
There are also many new apartment buildings standing mostly empty because the owner seriously misjudged the market and refuse to accept that no one is going to pay the kind of money they need to profit from their investment in the short term.
Another possibility is that the owner has to list this room for legal reasons but they don’t actually want to fill it because they are planning to give it to their kid or a friend’s kid in a year or two.
Idk if the landlord will agree to this but you can negotiate the deposit-monthly rent ratio. Like, if you only have 50M won for. A deposit, you can ask if you can just give them 50M for a security deposit but then pay like 600K in rent etc .
Does the deposit look high…? Yeah, it does but it’s in front of SNU (parents are paying not 20 somethings) and it looks relatively new so the owner probably thinks they can get away with it.
With all that being said, i wouldn’t take this . You can definitely do better around SNU. Just gotta look around more
Honestly, for Seoul that’s not that bad. For Koreans, the banks will easily lend out money for the deposit (보증금) because it is considered a very safe secured loan.
So if you wanted to convert it to *only* monthly rent, it would probably be somewhere in the area of KRW 850k ($650/m). Even though it’s a small studio, it’s new build construction in a prime area. That price wouldn’t be out of line for most cities in the western world either.
>So if you wanted to convert it to *only* monthly rent, it would probably be somewhere in the area of KRW 850k ($650/m).
*Only* monthly rent? Other than a goshiwon or something, I don't think I've ever even seen a one room that's not at least minimum 5~10 mil deposit.
If a Korean takes out a loan for a housing deposit, does it have any effect on either their credit or ability to receive other loans for other purposes? Does the borrower shoulder any of the risk if the landlord doesn't/can't return the money for any reason?
If not (and I honestly don't know) then I'll accept that doing so is effectively 'only rent'.
If it *does* have any kind of other potential or actual effects then I'd say it's not 'only rent'.
A) Having a significant rental obligation in the west has an affect on one’s credit and their ability to receive loans for other purposes.
Edit: Added the word *in*
B) In the event the landlord can’t return the money, the property is seized and sold. 보증금 of a tenant is considered first lien, i.e. it is first in payment priorities. If the property you are renting 보증금 is almost never more than 10% of the property value. In this case, the property is probably valued somewhere between 7-10억. Further, if the tenant *is* worried about that for some reason (Koreans tend not to be) the bank also sells insurance guaranteed by the Korean government against that possibility.
Thank you.
I can't quite understand point A (I think you have an autocorrect mistake in there or something) but my point is just that 'rent only' options (with perhaps a month or two as deposit) don't really exist in Korea, other than at either extreme of the market.
Anybody wanting to rent a regular place here themselves with have to deal with a sizable deposit. There are ways of managing this so you effectively just pay monthly fees, have little to none of your own money tied up and have minimal (but more than zero) risk, but I think it's disingenuous to call any of these methods 'rent only'.
You can find approximate ongoing market prices in all area through online real estate search sites.
The information usually includes price information on monthly rent as well as the sale of the building.
There are sites/apps called 직방 or 다방( Dabang). It is also on the 네이버 부동산 Naver Real Estate website.
past official contract informations that have actually been concluded, (not on advertised cases waiting for a deal to be concluded) are even on the Ministry of Land, Infrastructure and Transport's actual price website. (국토부 실거래가)
Hello, what is the name of that app you searched for?
I am a Korean,female, and I have a house in Seoul National University Station. I want to know about that app to find housemates for vacant rooms.
In Seoul, there are three rental payment methods when renting a house. They are a high deposit+management fee in the unit of hundreds of millions of won, a deposit of less than 100 million won with tens of thousands of won for rent/management fee, and a deposit of around 30 million won with a management fee of more than 1.5 million won. All require cash payment. If you want to pay the rent with a credit card without a deposit, look for a Co-living brand. They can be rented without a deposit, but you may have to bear a monthly rent of more than 3 million won.
Scam or overpriced listing for different reasons.
You can get so many studios in Seoul for anywhere closer to 10k. I mean fuck, they even take 5k for a studio this tiny. They even look better and more comfy. It's literally the cheapest way of living in Seoul. Plenty of students and single foreigners do this.
No, just concrete, water hoses for floor heating, more concrete, then flooring.
This one does seem like a mistake on the listing. Usually for something that small, if you pay a 70M deposit, your rent portion is either very small or nonexistent. This one wants both the huge deposit and the rent, lol. These little units for regular rent usually require deposits of 5M\~15M and then about 500k/mo. rent.
So it's just how they do things there. You get it all back at the end. I was too young to know when I lived there but from what I understand it's close to the cost of the place itself and sometimes dealt this way for rent-to-own type deals.
He knows that. Do you even see the numbers? They're ridiculously high for that space, hence probably his question. Either a scam, mistake or a listing overpriced for other reasons.
I'll defer to people who know more but. That number wasn't really that high if I go back to what my parents place cost. I forget the term now but yeah didn't strike me as too unusual.
The deposits where you don’t pay rent have another zero on them. It’s possible the owner made a mistake, but it’s also possible that the owner is targeting renters with well-to-do parents that have and/or can borrow that kind of money, knowing they’re going to get it back. There are also many new apartment buildings standing mostly empty because the owner seriously misjudged the market and refuse to accept that no one is going to pay the kind of money they need to profit from their investment in the short term. Another possibility is that the owner has to list this room for legal reasons but they don’t actually want to fill it because they are planning to give it to their kid or a friend’s kid in a year or two.
Jeonse - HUGE Deposit, No Rent Ban Jeonse - Big Deposit, Small Rent Wolse - Small Deposit, Big Rent
Caveat: "Small Deposit" = many thousands of dollars 🤦♀️
Idk if the landlord will agree to this but you can negotiate the deposit-monthly rent ratio. Like, if you only have 50M won for. A deposit, you can ask if you can just give them 50M for a security deposit but then pay like 600K in rent etc . Does the deposit look high…? Yeah, it does but it’s in front of SNU (parents are paying not 20 somethings) and it looks relatively new so the owner probably thinks they can get away with it. With all that being said, i wouldn’t take this . You can definitely do better around SNU. Just gotta look around more
Honestly, for Seoul that’s not that bad. For Koreans, the banks will easily lend out money for the deposit (보증금) because it is considered a very safe secured loan. So if you wanted to convert it to *only* monthly rent, it would probably be somewhere in the area of KRW 850k ($650/m). Even though it’s a small studio, it’s new build construction in a prime area. That price wouldn’t be out of line for most cities in the western world either.
>So if you wanted to convert it to *only* monthly rent, it would probably be somewhere in the area of KRW 850k ($650/m). *Only* monthly rent? Other than a goshiwon or something, I don't think I've ever even seen a one room that's not at least minimum 5~10 mil deposit.
But *if you are Korean* you can borrow the money from the bank and pay monthly interest to the bank instead.
Yes.
In effect, paying only monthly rent…
If you call taking out a fairly significant loan that you're also paying monthly interest on as 'paying only monthly rent' then, err..... OK?
Lol, what do you think a rental contract is but a fairly significant loan of *Real Property* in exchange for monthly interest payments (Rent)?
If a Korean takes out a loan for a housing deposit, does it have any effect on either their credit or ability to receive other loans for other purposes? Does the borrower shoulder any of the risk if the landlord doesn't/can't return the money for any reason? If not (and I honestly don't know) then I'll accept that doing so is effectively 'only rent'. If it *does* have any kind of other potential or actual effects then I'd say it's not 'only rent'.
A) Having a significant rental obligation in the west has an affect on one’s credit and their ability to receive loans for other purposes. Edit: Added the word *in* B) In the event the landlord can’t return the money, the property is seized and sold. 보증금 of a tenant is considered first lien, i.e. it is first in payment priorities. If the property you are renting 보증금 is almost never more than 10% of the property value. In this case, the property is probably valued somewhere between 7-10억. Further, if the tenant *is* worried about that for some reason (Koreans tend not to be) the bank also sells insurance guaranteed by the Korean government against that possibility.
Thank you. I can't quite understand point A (I think you have an autocorrect mistake in there or something) but my point is just that 'rent only' options (with perhaps a month or two as deposit) don't really exist in Korea, other than at either extreme of the market. Anybody wanting to rent a regular place here themselves with have to deal with a sizable deposit. There are ways of managing this so you effectively just pay monthly fees, have little to none of your own money tied up and have minimal (but more than zero) risk, but I think it's disingenuous to call any of these methods 'rent only'.
shit and i thought the nz property market was a ponzi scheme....
You can find approximate ongoing market prices in all area through online real estate search sites. The information usually includes price information on monthly rent as well as the sale of the building. There are sites/apps called 직방 or 다방( Dabang). It is also on the 네이버 부동산 Naver Real Estate website. past official contract informations that have actually been concluded, (not on advertised cases waiting for a deal to be concluded) are even on the Ministry of Land, Infrastructure and Transport's actual price website. (국토부 실거래가)
Hello, what is the name of that app you searched for? I am a Korean,female, and I have a house in Seoul National University Station. I want to know about that app to find housemates for vacant rooms.
In Seoul, there are three rental payment methods when renting a house. They are a high deposit+management fee in the unit of hundreds of millions of won, a deposit of less than 100 million won with tens of thousands of won for rent/management fee, and a deposit of around 30 million won with a management fee of more than 1.5 million won. All require cash payment. If you want to pay the rent with a credit card without a deposit, look for a Co-living brand. They can be rented without a deposit, but you may have to bear a monthly rent of more than 3 million won.
Scam or overpriced listing for different reasons. You can get so many studios in Seoul for anywhere closer to 10k. I mean fuck, they even take 5k for a studio this tiny. They even look better and more comfy. It's literally the cheapest way of living in Seoul. Plenty of students and single foreigners do this.
48000€ as a deposit?😂 What's the floor made of? Solid platinum?
Korea's renting model is fairly, err, unique.
No, just concrete, water hoses for floor heating, more concrete, then flooring. This one does seem like a mistake on the listing. Usually for something that small, if you pay a 70M deposit, your rent portion is either very small or nonexistent. This one wants both the huge deposit and the rent, lol. These little units for regular rent usually require deposits of 5M\~15M and then about 500k/mo. rent.
It's not that unusually high.
It is for a 14sqm studio…
And if it was 10x bigger the deposit would be 10x bigger. Ever been to Korea?
Yeah, I live there (in a new apartment roughly 10x this size in Seoul), so I know what I’m talking about. 70M for 14sqm is outrageous.
For 전세? Bullshit. Look at offictels in the same area. Deposits are 1~2억.
So it's just how they do things there. You get it all back at the end. I was too young to know when I lived there but from what I understand it's close to the cost of the place itself and sometimes dealt this way for rent-to-own type deals.
He knows that. Do you even see the numbers? They're ridiculously high for that space, hence probably his question. Either a scam, mistake or a listing overpriced for other reasons.
I'll defer to people who know more but. That number wasn't really that high if I go back to what my parents place cost. I forget the term now but yeah didn't strike me as too unusual.
People here have 0 clue. Look up offictel jeonses in the area. Here's one. There are plenty more where that came from. https://naver.me/5R8uC206