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In order to stabilize the cheonsei market, the government will increase the benefits for 'win-win renters' who have raised the rental price to less than 5%, and expand the borrowing limit for supporting tenants who have already used the right to apply for contract renewal (renewal right).
In order to increase the number of jeonse properties, it was decided to extend the deadline for disposing of existing houses for those who receive mortgage loans in regulated areas and to ease the obligation to live under the presale price ceiling system.
The government held the first real estate-related ministerial meeting of the new government today (21st) presided over by Choo Kyung-ho, Deputy Prime Minister and Minister of Strategy and Finance, and confirmed and announced the 'Measures to Stabilize the Rental Market'.
In August of this year, which marks two years of enforcement of the 3 Lease Act (right to apply for renewal of contract, upper limit for cheonsei, and reporting system for cheonsei), the government is planning to reduce the burden on tenants due to concerns that there may be a 'Jeonse rental market turmoil', in which the deposit and monthly rent for four years will rise at the same time. suggested a plan for it.
First, we will increase the benefits for 'win-win tenants' so that lessors can voluntarily minimize rent increases.
A win-win lessor is a lessor who has signed a new/renewed contract with a rent increase of 5% or less compared to the previous contract.
Until now, only one householder with a standard market price of 900 million won or less at the time of rental start was considered a win-win tenant.
Currently, one year of the two-year residence requirement is recognized for the housing leased by the win-win rental for more than two years, but the two-year residence requirement is completely exempted by the end of 2024. .
During the same period, the two-year residence requirement for the special deduction for long-term ownership of one house per household is also exempted.
The government will revise the Enforcement Decree of the Income Tax Act next month and provide related benefits to rentals after December 20, 2021, when the win-win rental system was first implemented.
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For tenants whose renewal contract for the next one year expires, the deposit and loan limit of the shoring jeonse loan will be increased from August.
The metropolitan area will increase the deposit amount from 300 million won to 450 million won and the loan limit from 120 million won to 180 million won, respectively.
The provinces increase the deposit amount from 200 million won to 250 million won and the loan limit from 80 million won to 120 million won, respectively.
The monthly rent tax deduction rate is raised from 10% to 12% for householders with a total salary of KRW 70 million or less, and from 12% to 15% for owners of households with KRW 55 million or less.
The limit of income deduction for 40% of the principal and interest of the cheonsei deposit loan will be increased from 3 million won to 4 million won per year.
In order to increase the number of cheonsei properties, various real residence obligations related to loan and sale price caps are also relaxed.
When receiving a subsidy to purchase a house in a regulated area, the deadline for disposing of an existing house will be increased from six months to two years, and the deadline for moving into a new house will be eliminated.
For up to 5 years of real residence in an apartment subject to the sale price ceiling system, the 'immediate first move-in date' clause will be removed and the actual residence period will be filled only before the transfer, inheritance, or gift of the relevant house.
The limit on subsidy for the purpose of living stabilization funds will be eased to 200 million won this year, and further easing will be considered in the future.
Owners of high-priced houses with a market value of more than 900 million won are also allowed to extend the guarantee of the jeonse loan until they move out if they have already received a jeonse loan.
Purchased rental housing for young people and newlyweds, which is only being supplied as monthly rent by the guarantee department, will be supplied by jeonse from the 3rd quarter of occupant recruitment.
In the case of private construction rentals by corporations, an additional 20% corporate tax is excluded when a house of less than KRW 900 million is leased for 10 years or longer and then transferred.
In the case of private construction rentals by sole proprietors, 70% of special transfer tax deduction is applied if a house that has been leased for more than 10 years is registered by the end of 2024.
The same applies to houses registered before February 17 of last year, the requirement to exclude the sum of comprehensive real estate tax for houses with a published price of 900 million won or less, which was applied to rental registrations after February 17, last year.
Individuals who transfer land to a public purchase/lease construction business operator by the end of 2024 are exempted from 10% transfer tax, and corporations are not subject to an additional 20% corporate tax.
Unsold housing that is subject to building permits, like those subject to business plan approval, is exempted from the sum of tax for 5 years regardless of whether they live or not.
An additional 1.2 times the current floor area ratio is allowed for newly built houses that public institutions have agreed to purchase.
(Photo = provided by the Ministry of Strategy and Finance, Yonhap News)