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【Korea Joongang Daily】Korea property price drop squeezes ‘gap investors’

【Korea Joongang Daily】Korea property price drop squeezes ‘gap investors’

焦點新聞
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產業動態
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東北亞
閱覽次數267

Property investors are dumping assets on the expectation that prices are set to decline, and so-called gap investors are also selling.

“Many are selling their real estate, except for few key properties, in order to manage risk,” said Han Moon-do, Yonsei University professor of real estate finance. “They think the housing prices have peaked.”

Gap investing is possible when the purchase price and the jeonse price, or long-term deposit rent, are about the same. This allows the investor to purchase the apartment with little investment.

For example, the investor only has to pay 50 million won ($41,941) when purchasing an apartment if the market value is at 400 million won and the jeonse deposit is 350 million won. The landlord has to return the 350 million won when the tenant moves out.

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