“I don’t think my child will be able to buy a house for the rest of my life”… increasing numbers of parents buying apartments for their children in their twenties

Input 2021.02.16 15:00

Mr. Oh, 51, living in Daegu, recently purchased an apartment building in Bupyeong-gu, Incheon in the name of his younger son. The sale price of the apartment is about 180 million won, which is a gap investment that inherits the existing jeon tax. Mr. Oh said, “The price of the house is so high these days that when my second son gets married, I thought I had to buy anything to get a charter,” he said. “I gave my son a cash gift to buy a house.”

The percentage of buying houses in their twenties increased due to anxiety that it would be difficult to buy a single house. Real estate experts interpreted it as something different, as the anxiety of parents in their 50s and 60s with children in their 20s has increased. This means that singer Yoo, who buys a house for the future, is included.

According to the Korea Real Estate Agency on the 16th, it was revealed that out of 10,027 apartments sold nationwide in December last year, 7098 were purchased by’under 20’s. The share of’under 20’s in apartment sales was 6.7% of the total, the highest level since related statistics were prepared. Just in August, four months ago, the proportion of’under 20′ was only 4.5%.

Gyeonggi-do, Incheon and the five metropolitan cities showed higher proportion of purchases in their 20s and younger than in Seoul, which has a higher price point. In December of last year, the percentage of purchases in Seoul for those in their 20s and under was only 5.3%, but Gyeonggi-Incheon and 8.0% were counted as 6.4%.

Go Jun-seok, adjunct professor at Dongguk University’s Graduate School of Law, said, “When parents donate cash to their children and buy a house on a charter basis, they often look for places with higher upside potential rather than places with a high price point.” “I said.

The donation of apartments was still higher than the same period last year. According to the Korea Real Estate Agency, the proportion of donations in apartment transactions exploded to 8.2% in July of last year, before the tax law revision, more than doubled from the previous month (3.8%), and has maintained a higher proportion than the previous year even after August, when heavy taxation was applied. . The share of donations in December of the same year was also 5.7%, higher than the same period last year (4.2%) by more than 1.5%P (points).

He is not concerned about the government’s heavy taxation. The government decided to overstate the gift acquisition tax rate from 3.5% to 12% when multi-homed people donate houses with a market price of 300 million won or more in the area subject to adjustment through the revision of the tax law in accordance with the July 10 measures from August 12 last year. This means that the gift acquisition tax has more than tripled.

In the real estate industry, it is attributed to an increasing number of cases in which parents, who are single homeowners, donate homes to homeless children and live in cheonsei in old age. 1 When parents who are homeowners donate a house to their children, the gift acquisition tax rate is the same as the previous 3.5%.

In particular, donations have increased around school districts. In December of last year, the donation rate of apartments in Seoul was 15.4%, an increase of 8.2 percentage points from the previous year (7.3%). In Gangnam-gu, where the Daechi-dong school district is located, the percentage of donations increased 20.2 percentage points from 13.8% to 34% during the same period. Yangcheon-gu, where the Mokdong School District is located, also increased the share of donations from 8.9% to 22.1% in one year by 13.5 percentage points.

An official from a real estate agency near Daechi-dong, Seoul, said, “In the past, when I raised all my children in a school district, I often went out to the outskirts and enjoyed retirement, but recently, I would like to raise my grandchildren in the school district and give the school district housing as a gift to my children.”

An insurance company’s Inheritance/Gift Center official said, “In the past, I was not active in giving real estate or giving cash because I thought that I should not give it too early. “There are more people who review it.”

More and more people are tapping on the calculator on how to give a child some cash to buy a house that is rented and to give the real estate itself. If you donate cash to a child to buy a house, you only have to pay the gift tax, but if you donate real estate, even if it is a burdened gift with a jeonse, the child must pay the gift tax and the gift acquisition tax, and the parent must pay the transfer tax due to the transfer of debt.

For example, if you buy a house worth 900 million won in the name of your child and donate 300 million won in cash (the remaining 600 million won is covered by jeonse funds), the gift tax is 33.8 million won and the acquisition tax is 29.7 million won (3%). The total tax burden is 63.5 million won, which is 7% of the trading price.

2 In the case that a parent of a home gives a house worth 900 million won (similarly, 600 million won) to their children, the gift acquisition tax rate (14%, including local education tax) is 126 million won and a gift tax of 38.8 million won equivalent to 300 million won You have to pay (3%). In addition, capital gains tax based on gains from transfers must be paid from tens of millions of won to billions. Excluding the capital gains tax, a total of 164 million won, and instead of giving cash to buy a house, you have to pay 100 million won more in tax.

Shinhan Bank Real Estate Investment Advisory Center Manager Woo Byung-tak said, “After the announcement of the policy to triple the gift-acquisition tax, intensive donations were made from July to early August, and they have not disappeared even after the regulations were implemented.” , It will not be reduced for the time being, as it is due to the imposition and imposition of the end tax after June.”