Great War-a great uproar. Greatly dizzy
Great War-a great uproar.
Without any misunderstanding, it is literally in its dictionary meaning.
This is the ‘jeonse crisis’ that took place after the Housing Lease Protection Act came into effect at the end of July.
The seeds for sale are dry, and the prices are skyrocketing.
For example, if you look at the current status of apartment rentals in major apartment complexes in Seoul (as of October 17th), apartment A in Jamsil, Songpa-gu, has only one rental of 2,678 households.
Compared to the number of over 100 in mid-July, it has dropped more than 99% in just three months.
In mid-July, apartment B in Daechi-dong, Gangnam-gu, has disappeared from 200 to 1, and apartments C and D in Seocho-gu and Dongjak-gu disappeared from 40 to 0, respectively.
The market estimates that the number of rental apartments in Seoul dropped by 80% in two months after the revision of the Lease Act.
This rare phenomenon, why did it happen?
● "Thirty thousand-ri to find a jeonse"
1. The key point is that with the enforcement of the Lease Act, jeonse tenants can live in the house they used to renew their existing contracts for two more years.
For tenants, there is a great advantage of ensuring housing stability.
But if you look at it a little bit more, the reality is that tenants aren't going out, but rather a'can't go out' situation.
This is because the house price as well as the jeonse price rose too much than at the time two years ago when the charter contract was signed.
Considering the current house price and total rent, many tenants have practically no alternative to living for an additional two years.
Chartered sale, of course, has to be reduced.
2. The number of people seeking subscriptions after several years of supply expansion policies, such as the 3rd new city, is also a factor in the decline in rental sales.
Because the location requirements are good and relatively inexpensive houses are provided due to the pre-sale price limit, etc., you live in a charter and wait for the subscription.
In other words, more and more people don't buy a house and stay on charter.
3. The increased tax burden also encourages'preferential jeonse'.
Acquisition tax paid when buying a house, ownership tax paid when owning a house (general real estate tax + property tax), and transfer tax due when selling a house all rose.
This policy was introduced to pressure multi-homed people to put out their homes, but it is also true that the burden on single homes has increased.
Considering the tax burden, it is judged that the jeonse may be better in terms of housing cost.
● Sudden drop in supply + increased demand = soaring price
As such, the supply of jeonse has decreased significantly, while demand for jeonse has increased rapidly.
The price, of course, has to rise.
The 107㎡ apartment in Gangdong-gu, which was 650 million won before the amendment of the Lease Act, is 900 million won after the revision, the 84㎡ apartment in Seongdong-gu is from 530 million won to 750 million won, and the G apartment 131㎡ in Jamsil-dong, Songpa-gu. For my brother, the rent for the jeonse jumped quickly and sharply from 530 million won to 750 million won.
Last week, apartment rental prices rose 68 weeks in a row in Seoul and 62 weeks in a row in the metropolitan area.
Supply is an extremely natural and common-sense result in a situation where seeds are dry and demand is growing.
The ambitious policy to protect the weak has become a comedy-like situation where the weak are ambitious.
This is the reason why the cry'Thirty thousand-ri looking for the predecessor' is not just a joke.
● Will it work if you are in need?
In the protagonist, there is a saying that it works when you are in need.
This saying is no exception to the charter market today.
(Of course, this is not a word to use in this case.) Desperate landlords and tenants were looking for a variety of ways of survival (?) that had not been available in their respective circumstances.
1. Chartered tenants
separate rent There are tenants
who cannot emptied the rented house due to problems such as education of their children.
I'm worried that the landlord will ask you to leave because you want to live.
The deposit for jeonse that I paid two years ago was 1.1 billion won, but the price around it is 1.5 billion won.
At least 400 million won more is required to find a new jeonse.
Of course, it is a separate matter to obtain a chartered property at the level of'picking the stars in the sky'.
So, first of all, I renewed the contract'officially' by raising the deposit only by 5%.
In addition, we decided to separate the difference from the surrounding jeonse market as monthly rent.
The monthly rent (1.2 million won X 24 months = 28.8 million won) equal to the difference of 400 million won from the surrounding market price was agreed with the landlord to deduct from the 1.1 billion deposit after two years.
I decided to write a borrowing card because such a back-side contract must be binding.
2. Tenants asking for tens of millions of won'monthly rent + moving fee'
There were also tenants who asked, "I will give up the right to apply for contract renewal and leave the house. Instead, I will ask for rent and moving fee separately."
During the interview process, a tenant I met asked the landlord for tens of millions of won in the name of'Monthly Rent + Moving Fee'.
The realtor in charge of this contract said, "The tenant asked for the moving fee, so I agreed with the landlord every 2 million won. In that state, I asked for an interest rate of 40 million won for 4 years because the market price for the jeonse deposit rose by 200 million won." The angry landlord said, "Do whatever you want. I'll do the law."
3. Landlords who are looking for tenants of the same surname
There have been some landlords who have been tricky to get the
rent for rent at a
largely increased market generation after sending out existing tenants.
It is looking for tenants with the same surname, as if a'immediate family member' who could refuse the right to apply for contract renewal under the Lease Protection Law.
There have also been cases of asking a realtor to find a tenant with the same surname while offering a house.
By telling you that your parents or children have come in, you think you can deceive the existing tenant.
4. More demanding landlords
are looking for jeonse, and more demanding conditions have emerged.
For example, tenants with small children or pets would not be accepted, or because the chartered property was so valuable, some landlords demanded a financial price for seeing the house in the name of'corona quarantine expenses'.
5. Mortgage Loan Many private
, and the formerly unpopular'many mortgage loans' private houses are also on sale as soon as they are sold.
More and more tenants are signing contracts at the risk of taking the cheonsei.
It looks like I'm sitting on the street right now, but it's not the time to cover cold or hot rice.
● Apology that continues…
In response to the "non-sustainable policy"
revolt, the heads of ministries leading the policy bowed their heads and apologized.
Hongnamgi deputy prime minister in the last 14 days the real estate market in check meeting
"accepts heavily on difficulties of those guhasineun the charter to the new charter price relation nagagetda to check, closely inter-ministerial discussion about factors such as rise,"
Minister Kim Hyun-mi also said,
I think it will take a certain amount of time for the
market to stabilize,
" and said,
"The government has been working hard for the stability of the real estate market and housing welfare. I think it's throwing for points. will do my best to "ensure that the situation is resolved well
have answered that.
Most of the expert responses I met during the interview ended up being one.
Is that the current policy needs to be reversed or at least relaxed.
Professor Chang-moo Lee (Laboratory of Urban Real Estate Economics at Hanyang University) pointed out that "the biggest problem in the market is the breaking of the chain between residential movement and transactions."
"As soon as Deputy Prime Minister Hong Nam-ki feels painfully, the natural balance between supply and demand has collapsed as housing consumption and movement are restrained. Then, the worst phenomenon of rising prices even though there is no home will appear."
"The policy was made in good faith, but it was applied rapidly without sufficient simulation. Such a drastic prescription cannot be permanently sustained,"
French anthropologist Levi-Stros, who traveled to Brazil in the 1930s, left a transcript of'Tristes Tropiques'.
He met with Native Brazilians and observed their lives, and then reflected on how frivolous the Westerner's view of them was.
"Cannibalism, etc. is just an anachronistic prejudice, and it only interferes with understanding the true nature of the natives," he stressed.
Furthermore, he said that the superficial and distorted information about them reinforces the self-satisfying prejudice of Westerners, and urged the indigenous peoples to humbly admit that they have abundant wisdom.
As I enter the Ministry of Land, Infrastructure and Transport in 2020, I often think of this book called'Sad Tropical'.
Just as Westerners at the time perceived the natives of Brazil as inferior and deserving of their teaching, the
current government and the ruling party also viewed the mayor as so-called'hands-to-hand' object.
I doubted whether the market was viewed as'full of problems to change, fix, and lead'.
(However, this does not mean that you should leave everything to the market. What is as dangerous as'government failure' is also'market failure'. The government that strikes a good balance between'government failure' and'market failure' is capable and excellent. It may be the government.) The
government and ruling party officials who met during the interview emphasized the'authenticity' of the policy introduction to the question'Isn't it a government failure?'
Viewing the house from a residential perspective rather than an economic point of view, taxing on wealth that is not based on one's own labor, and preventing the dropout of competition from falling into hell, where the starting point of the child is not determined by the parents' wealth. It is to build a social safety net
That's right a hundred times and I totally agree.
The people also appreciated that philosophy, perspective, and sincerity and would have given the gift of 180 members of the National Assembly.
The problem is'methodology'.
The belief is just, but the policy to implement it is not sophisticated.
Despite the concerns of numerous experts, unripe policies have been roughly and crudely applied to the market without sufficient verification
So, the policy we put forward for the weak has led to a rise in mid- to low-end home prices and the disappearance of chartered properties, and it has returned to a boomerang that puts the weak into trouble.
The policy proposed to create a fair market has created a place where the expedients and tricks described earlier come into play.
Today, we are looking at the side effects of approaching a market that moves finely through supply and demand with only unsophisticated beliefs.
If Levi-Stross traveled to Korea in 2020, wouldn't the book'Triste immobiliere' come out, not sad tropical?
● "Did you consider the side effects enough and take measures?"
Landlords, existing tenants, and those seeking new charters.
Everyone distrusts each other.
And the world has gotten harder.
The people ask.
'Even if the purpose of the new system is correct, have you fully pondered the side effects that it will cause and established elaborate countermeasures accordingly?'
France France's leading critic and author Andre Morois said.
"We are grateful for the honest words of close people. Other people's honest words sound arrogant."
The people are hoping that officials from the ruling party who make and lead the policy will now appreciate the honest words of Hong Nam-ki, a ‘Seoul Mapo-gu Jeonse Refugee’ rather than the Deputy Prime Minister of the Economy.
*'Back money' to not empty the private house...
Disbelief · Only Grim Remains / Han Se-Hyun 8-ri