5 ms·

- i did jeonse - and was jeonse landlord - used savings for 2 years of key money - paid no rent for 2 years - saved like mad for them 2 years - moved out after

- i did jeonse - and was jeonse landlord - used savings for 2 years of key money - paid no rent for 2 years - saved like mad for them 2 years - moved out after 2 years - took my savings + jeonse return - bought a house - got a mortgage on a second place using first place + jeonse deposit from my tenet - now own 2 places that appreciate faster than any other investment could have made - last year - sell them both - pay back jeonse tenent - bought 1 nice house with no mortgage - couple things to clear up in this tread - jeonse is not usually 80% - I see the wiki article says that but never seen someone paying 80% of the property value - usually 40/50% - why not morgage? morgage in SK is very very difficult to get - most people early in life not qualifying for one - so this system works - one other things not mentioned - many employers will offer you jeonse loan after 1 year of employment --

deleted 4y ago
[deleted]
vore 4y ago
It's great it worked for you to get you your "1 nice house with no mortgage", but as the article states this only works if property prices don't fall. I think your comment completely disregards the really bad flip side of this scheme that the article is talking about and you are cherry-picking your personal anecdote to... flex...?
- pigtailgirl 4y ago
  -- most people here not trying to build house of card scam jeonse empires is point of my post - korea is usually quite an honest country - assume positive intent! =) --
  - IG_Semmelweiss 4y ago
    Thats ok. But there are bad apples everywhere. This seems like Russian roulette - gambling your early life financial stability in that your landlord is a usual straoght arrow so you can pay nominally lower rent. Even a 5% counterparty risk in return for marginally lower rent seems like a bad deal considering the amount at risk is life changing. The deposit is not held in escrow. A loss of a non collaterized 300k loan in early marriage couples could be devastating.
maeil 4y ago
> morgage in SK is very very difficult to get - most people early in life not qualifying for one This is the same in the large majority of other wealthy countries. The difference is that in Korea the pressure for a newly married couple to move straight into a bought or at least jeonse apartment is much bigger. Paying monthly rent is seen as a sin. This completely unrealistic expectation isn't nearly as strong in e.g. urbanized Western-Europe, in some of which it's even harder to get a mortgage than in Korea. This is boosted by the societal fantasy of ever-rising property prices. This again is also seen elsewhere but in Korea it's much more extreme. Completely understandable as they've been rising for multiple decades straight, but still wildly unrealistic. Japan has gone through the exact same process in the past.
- pigtailgirl 4y ago
  -- Korea is still an emerging country - 40 years ago we were basically "3rd world" - still a lot of growth to go! --
  - deleted 4y ago
    [deleted]
  - maeil 4y ago
    There are few measures by which Korea is still an emerging country and by many other measures it's more developed than many other OECD countries. The status of Korea 40 years ago doesn't change its current reality and how it compares to other countries today. Nor does its current GDP growth; we wouldn't suddenly stop calling Germany a highly developed country if it started posting the exact same growth numbers that Korea does.

deleted 4y ago

[deleted]

vore 4y ago

It's great it worked for you to get you your "1 nice house with no mortgage", but as the article states this only works if property prices don't fall. I think your comment completely disregards the really bad flip side of this scheme that the article is talking about and you are cherry-picking your personal anecdote to... flex...?

pigtailgirl 4y ago
-- most people here not trying to build house of card scam jeonse empires is point of my post - korea is usually quite an honest country - assume positive intent! =) --
- IG_Semmelweiss 4y ago
  Thats ok. But there are bad apples everywhere. This seems like Russian roulette - gambling your early life financial stability in that your landlord is a usual straoght arrow so you can pay nominally lower rent. Even a 5% counterparty risk in return for marginally lower rent seems like a bad deal considering the amount at risk is life changing. The deposit is not held in escrow. A loss of a non collaterized 300k loan in early marriage couples could be devastating.

maeil 4y ago

> morgage in SK is very very difficult to get - most people early in life not qualifying for one This is the same in the large majority of other wealthy countries. The difference is that in Korea the pressure for a newly married couple to move straight into a bought or at least jeonse apartment is much bigger. Paying monthly rent is seen as a sin. This completely unrealistic expectation isn't nearly as strong in e.g. urbanized Western-Europe, in some of which it's even harder to get a mortgage than in Korea. This is boosted by the societal fantasy of ever-rising property prices. This again is also seen elsewhere but in Korea it's much more extreme. Completely understandable as they've been rising for multiple decades straight, but still wildly unrealistic. Japan has gone through the exact same process in the past.

pigtailgirl 4y ago
-- Korea is still an emerging country - 40 years ago we were basically "3rd world" - still a lot of growth to go! --
- deleted 4y ago
  [deleted]
- maeil 4y ago
  There are few measures by which Korea is still an emerging country and by many other measures it's more developed than many other OECD countries. The status of Korea 40 years ago doesn't change its current reality and how it compares to other countries today. Nor does its current GDP growth; we wouldn't suddenly stop calling Germany a highly developed country if it started posting the exact same growth numbers that Korea does.