December 17, 2017, 02:36:44 AM

Author Topic: RANTING/VENTING MEGATHREAD 3.0  (Read 601152 times)

Online JNM

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6240 on: July 11, 2017, 09:24:50 PM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.
Don't beat yourself up over it.
If you make money on your home (on paper), you can only turn that into cash if you move somewhere cheaper.

Offline donovan

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6241 on: July 11, 2017, 10:20:58 PM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.

You paid 240 million for jeonse but you had the option to buy for the same amount. I don't quite understand, but that is an insane amount. Curious if this is in Seoul, some other metropolis, or a smaller area?

Offline Pecan

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6242 on: July 11, 2017, 10:40:28 PM »
With 240,000,000 KRW, with that kind of capital you would be able to easily buy a 500,000,000+ home, so I don't follow why you would simply park that money.

What was the upside/downside?

If you wanted to remain in your current place, why not take out a 90,000,000 note, which would only be 37% of value.

Surely, you could easily find a bank that would do that, no?

Offline Savant

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6243 on: July 11, 2017, 10:57:51 PM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.

You paid 240 million for jeonse but you had the option to buy for the same amount. I don't quite understand, but that is an insane amount. Curious if this is in Seoul, some other metropolis, or a smaller area?

I think the actual cost to buy was 250 million (yeah, Jeonse was almost the same) but we were not looking to buy at that time. Since then lots of new developments have popped up in our area and more are being built, which I guess are driving up prices.

Edit: Not Seoul but Anyang area of Gyeonggi.
« Last Edit: July 12, 2017, 08:32:38 AM by Savant »

Offline Savant

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6244 on: July 11, 2017, 11:02:14 PM »
With 240,000,000 KRW, with that kind of capital you would be able to easily buy a 500,000,000+ home, so I don't follow why you would simply park that money.

What was the upside/downside?

If you wanted to remain in your current place, why not take out a 90,000,000 note, which would only be 37% of value.

Surely, you could easily find a bank that would do that, no?

We are not that rich and most of our Jeonse is through bank loans. It's a gamble to park your money in an area that you hope will rise in value. Our apartment is at least 20 years old but prices seem to keep rising.

Yeah, it would be "easy" to increase the loan from the bank but we could move into an area 15 minutes away for the same 평 size and far less price than the 330 million our apartment is going for now.

Offline jddavis7

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6245 on: July 12, 2017, 08:09:42 AM »
Day 3 of my strict diet.

I'm hangry and hate everyone and everything.  :cry: :cry: :cry:

Offline kobayashi

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6246 on: July 12, 2017, 08:20:48 AM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.

You paid 240 million for jeonse but you had the option to buy for the same amount. I don't quite understand, but that is an insane amount. Curious if this is in Seoul, some other metropolis, or a smaller area?

my god .... you paid 240 mil for jeonse?

putting that money in index funds - which usually average 7-8% per year - would have netted you a return on investment of around 17 to 19 million Won. per year.

Offline donovan

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6247 on: July 12, 2017, 08:33:08 AM »
You gotta live somewhere, Kobayashi. Plus, the money's on loan for a specific purpose. That probably would have violated the terms of the loan to invest the money.

Offline kobayashi

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6248 on: July 12, 2017, 08:41:36 AM »
yeah i know. of course you can't take out 240 mil in loans from the bank and just invest it.

i was using it more as an illustration of how much the jeonse system can be a rip-off.

Offline twinsaurus

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6249 on: July 12, 2017, 08:48:22 AM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.

You paid 240 million for jeonse but you had the option to buy for the same amount. I don't quite understand, but that is an insane amount. Curious if this is in Seoul, some other metropolis, or a smaller area?

my god .... you paid 240 mil for jeonse?

putting that money in index funds - which usually average 7-8% per year - would have netted you a return on investment of around 17 to 19 million Won. per year.

Am I wrong in thinking that jeonse is usually paid using a bank loan? Me and my husband have a jeonse apartment for 190 million in Busan. We paid a 40 mill deposit and the rest is a loan that we pay interest on (a few hundred k per month). We will repay the loan when we leave the apartment and get the jeonse back. In my experience it's an awesome win-win way for everyone - I get a sweet apartment for 350k "rent" every month, the landlord invests the jeonse to get interest, and the bank gets to reap interest on a relatively low-risk loan. Wish they had this system back in the states.

Offline iamsam

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6250 on: July 12, 2017, 08:50:19 AM »
Do you mind posting some pictures of what 330,000,0000 gets you in the outskirts of Seoul.  I've been to Anyang, some parts are nice, but other are shitholes and filthy.  Just wondering if 330,000,000 gets you into the nicer areas.  Cheers.

Offline Savant

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6251 on: July 12, 2017, 09:11:51 AM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.

You paid 240 million for jeonse but you had the option to buy for the same amount. I don't quite understand, but that is an insane amount. Curious if this is in Seoul, some other metropolis, or a smaller area?

my god .... you paid 240 mil for jeonse?

putting that money in index funds - which usually average 7-8% per year - would have netted you a return on investment of around 17 to 19 million Won. per year.

Am I wrong in thinking that jeonse is usually paid using a bank loan? Me and my husband have a jeonse apartment for 190 million in Busan. We paid a 40 mill deposit and the rest is a loan that we pay interest on (a few hundred k per month). We will repay the loan when we leave the apartment and get the jeonse back. In my experience it's an awesome win-win way for everyone - I get a sweet apartment for 350k "rent" every month, the landlord invests the jeonse to get interest, and the bank gets to reap interest on a relatively low-risk loan. Wish they had this system back in the states.

Similar to us. 50 million was our own money. 190 million on loans. We pay 500k in monthly interest back to the bank. It is a nice system but also one that could come down like a house of cards.

Offline Dave Stepz

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6252 on: July 12, 2017, 09:19:11 AM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.

You paid 240 million for jeonse but you had the option to buy for the same amount. I don't quite understand, but that is an insane amount. Curious if this is in Seoul, some other metropolis, or a smaller area?

my god .... you paid 240 mil for jeonse?

putting that money in index funds - which usually average 7-8% per year - would have netted you a return on investment of around 17 to 19 million Won. per year.

Am I wrong in thinking that jeonse is usually paid using a bank loan? Me and my husband have a jeonse apartment for 190 million in Busan. We paid a 40 mill deposit and the rest is a loan that we pay interest on (a few hundred k per month). We will repay the loan when we leave the apartment and get the jeonse back. In my experience it's an awesome win-win way for everyone - I get a sweet apartment for 350k "rent" every month, the landlord invests the jeonse to get interest, and the bank gets to reap interest on a relatively low-risk loan. Wish they had this system back in the states.

When we had a 40 000 000 won 'weolse' a couple of years ago to get a 34 pyeong, the bank did an 'interest only' loan for 32 000 000 won and we stumped up the 8 000 000 won.  That was only for a year, and then we got another place the same size, for the same 'interest only' for another year.  Then in the new city next to ours, a brand new apartment of the same size and 'weolse' was going for just 10 000 000 won.  We snapped that up.  But this time we paid with only our money.  I think the 'interest only' we paid was 70 000 won a month.  But now we have no monthly to pay, which feels nicer.

My wife kind of complained recently because her friends bought their houses, we don't live in Seoul, we're in Chungnam.  I mean we're talking Central Seoul and 600 000 000+ won in Ahyeon and Dongdaemun and they have jobs for Samsung and as Dongdaemun night market retailers so are raking it in. They have really nice apartments but that kind of outlay for 20-24 pyeong or so, doesn't seem worth it.
« Last Edit: July 12, 2017, 09:21:06 AM by Dave Stepz »

Offline Pecan

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6253 on: July 12, 2017, 09:49:55 AM »
Wow.

The numbers being thrown around are crazy.

Where have I been?

The standard used to be 10,000,000 KRW for every 100,000 KRW in rent.

Meaning, if the place had 100,000,000 deposit only option, you could substitute monthly for whatever portion of the deposit you didn't have.  If you only had 10,000,000 down, you would pay 900,000 a month in rent, or 50,000,000 down and 500,000 a month, etc.

I'm more than a little shocked by what I am hearing, as it sounds like some users are saying, given my example,  one could actually put down 100,000,000 deposit only option that was simply secured via the bank and only pay 200,000-300,000 a month on a place that we pay $1,000 a month to live in.

(scratching head)  You guys can't be serious.

Offline iamsam

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6254 on: July 12, 2017, 09:55:06 AM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.

You paid 240 million for jeonse but you had the option to buy for the same amount. I don't quite understand, but that is an insane amount. Curious if this is in Seoul, some other metropolis, or a smaller area?

my god .... you paid 240 mil for jeonse?

putting that money in index funds - which usually average 7-8% per year - would have netted you a return on investment of around 17 to 19 million Won. per year.

Am I wrong in thinking that jeonse is usually paid using a bank loan? Me and my husband have a jeonse apartment for 190 million in Busan. We paid a 40 mill deposit and the rest is a loan that we pay interest on (a few hundred k per month). We will repay the loan when we leave the apartment and get the jeonse back. In my experience it's an awesome win-win way for everyone - I get a sweet apartment for 350k "rent" every month, the landlord invests the jeonse to get interest, and the bank gets to reap interest on a relatively low-risk loan. Wish they had this system back in the states.

When we had a 40 000 000 won 'weolse' a couple of years ago to get a 34 pyeong, the bank did an 'interest only' loan for 32 000 000 won and we stumped up the 8 000 000 won.  That was only for a year, and then we got another place the same size, for the same 'interest only' for another year.  Then in the new city next to ours, a brand new apartment of the same size and 'weolse' was going for just 10 000 000 won.  We snapped that up.  But this time we paid with only our money.  I think the 'interest only' we paid was 70 000 won a month.  But now we have no monthly to pay, which feels nicer.

My wife kind of complained recently because her friends bought their houses, we don't live in Seoul, we're in Chungnam.  I mean we're talking Central Seoul and 600 000 000+ won in Ahyeon and Dongdaemun and they have jobs for Samsung and as Dongdaemun night market retailers so are raking it in. They have really nice apartments but that kind of outlay for 20-24 pyeong or so, doesn't seem worth it.

What do you mean weolse was 10,000,000?  Is that the deposit and then you pay monthly rent? You said, "you have no monthly to pay"..   

So Seoul is 600 milly for 700 square feet of characterless apartment block?  Guess I'll just live in a villa style place and keep stacking money until I can escape this overpriced jungle.

Offline Dave Stepz

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6255 on: July 12, 2017, 10:08:55 AM »
We've been doing Jeonse in our current place for 3 years now (contract ending next March) and heard today that the Landlady who bought it 1 year ago wants to sell up.

We moved in paying 240 million. The Landlady after we were there for 2 years sold it on and we stayed on as tenants to the new Landlady but our Jeonse increased to 290 million. Now, she wants to sell it for 330 million. Absolutely maddening prices!

Totally gutted that we didn't buy the place rather than taking out Jeonse as 240 million seems like a steal now. Would have made almost 100 million profit.

You paid 240 million for jeonse but you had the option to buy for the same amount. I don't quite understand, but that is an insane amount. Curious if this is in Seoul, some other metropolis, or a smaller area?

my god .... you paid 240 mil for jeonse?

putting that money in index funds - which usually average 7-8% per year - would have netted you a return on investment of around 17 to 19 million Won. per year.

Am I wrong in thinking that jeonse is usually paid using a bank loan? Me and my husband have a jeonse apartment for 190 million in Busan. We paid a 40 mill deposit and the rest is a loan that we pay interest on (a few hundred k per month). We will repay the loan when we leave the apartment and get the jeonse back. In my experience it's an awesome win-win way for everyone - I get a sweet apartment for 350k "rent" every month, the landlord invests the jeonse to get interest, and the bank gets to reap interest on a relatively low-risk loan. Wish they had this system back in the states.

When we had a 40 000 000 won 'weolse' a couple of years ago to get a 34 pyeong, the bank did an 'interest only' loan for 32 000 000 won and we stumped up the 8 000 000 won.  That was only for a year, and then we got another place the same size, for the same 'interest only' for another year.  Then in the new city next to ours, a brand new apartment of the same size and 'weolse' was going for just 10 000 000 won.  We snapped that up.  But this time we paid with only our money.  I think the 'interest only' we paid was 70 000 won a month.  But now we have no monthly to pay, which feels nicer.

My wife kind of complained recently because her friends bought their houses, we don't live in Seoul, we're in Chungnam.  I mean we're talking Central Seoul and 600 000 000+ won in Ahyeon and Dongdaemun and they have jobs for Samsung and as Dongdaemun night market retailers so are raking it in. They have really nice apartments but that kind of outlay for 20-24 pyeong or so, doesn't seem worth it.

What do you mean weolse was 10,000,000?  Is that the deposit and then you pay monthly rent? You said, "you have no monthly to pay"..   

So Seoul is 600 milly for 700 square feet of characterless apartment block?  Guess I'll just live in a villa style place and keep stacking money until I can escape this overpriced jungle.

When we had the 40 000 000 won deposit apartment we paid 500 000 won every month.   Expensive, but at that time there was no other options. Now in our 10 000 000 won deposit apartment we only pay 400 000 won, because it is a new city and there are loads of apartments.  The one we live in now was selling for about 1.4 billion originally.  When the Seoul friends come to stay they love it because we are 15th floor and have a view of the mountains from the living room.  No chance of a view like that in Seoul, unless you pay serious money.

Offline Pecan

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6256 on: July 12, 2017, 10:11:55 AM »
Monthly is 1,000,000 with 10,000,000 deposit, 700,000 with 40,000,000 deposit, or 500,000 with 60,000,000 deposit, etc.

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6257 on: July 12, 2017, 10:22:02 AM »
Quote
When we had the 40 000 000 won deposit apartment we paid 500 000 won every month.   Expensive, but at that time there was no other options. Now in our 10 000 000 won deposit apartment we only pay 400 000 won, because it is a new city and there are loads of apartments.  The one we live in now was selling for about 1.4 billion originally.  When the Seoul friends come to stay they love it because we are 15th floor and have a view of the mountains from the living room.  No chance of a view like that in Seoul, unless you pay serious money.

If you'd bought that apartment for 1.4 billion, you'd expect to get at least 5% of the price for renting it out. Ie 70 mil a year. How could you get that with a 10,000,000 deposit and 400,000 won a month. I don't get the maths.

Offline flyingspider

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6258 on: July 12, 2017, 10:22:52 AM »
I'm trying to plan camp, vacation, and my future and I can't get my brain to think about them in an orderly fashion. My mind keeps jumping from one thing to another, and now I don't want to think about anything.

Offline wanderlust8

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Re: RANTING/VENTING MEGATHREAD 3.0
« Reply #6259 on: July 12, 2017, 10:36:31 AM »
Either my co gave me the wrong pages to teach or she just decided to teach the stuff I had prepared. Was completely ready for class today when she starts teaching my part. I of course then had to come up with a game on the spot since the textbook games are the worst.
I also feel like I am living in an inescapable sauna and it's messing with my head. I need it to be winter.