Kwak Mo, 40, who owns an apartment in Mapo-gu, Seoul, had a wrong plan to enter his own house where he had rented a house. This is because all mortgage loans, including jeonse eviction loans, were completely banned for apartments exceeding 1.5 billion won as a result of the ’12/16 measures’ in 2019. There is no way to prepare a 500 million won deposit to pay tenants. The price of Kwak’s apartment was 1 billion won when the charter was set up in September 2019, but now it exceeds 1.5 billion won. Mr. Kwak complained, “It was a house I bought before the enforcement of the loan regulation, but because the market price rose, I could not live in my house.”
According to the real estate and financial industry on the 16th, victims of good faith are pouring out due to the ban on apartment loans exceeding 1.5 billion won. The government decided to apply a guarantee ratio (LTV) of 0% to ultra-high-priced apartments with a market price exceeding KRW 1.5 billion in speculative areas and overheated speculation areas through the December 16 measures in 2019. If either KB or Korea Real Estate Agency’s market price exceeds 1.5 billion won, there will be no loans at all. Immediately after the enforcement of the regulation, the purchase tax decreased, mainly in the high-priced apartments in the Gangnam area of Seoul.
However, with the surge in house prices last year, apartments with an existing market price of 1.5 billion won or less began to cross the’loan ban’ one after another. As the’panic buying (panic buying)’ caused by the Corona 19 rate cut and the failure of various real estate countermeasures hit the real estate market, the number of small and medium-sized apartments in the Gangbuk region exceeded 1.5 billion won. According to Real Estate 114, out of 1.24 million apartments in Seoul last year, 2,67,013 (20.78%) of apartments exceeding the market price of 1.5 billion won were surveyed.
There are even cases where you can’t laugh, hoping that the price of your own home won’t go up because there’s no loan coming out. Mr. Kim, 43, who signed an apartment in Seongdong-gu, Seoul for 1.4 billion won, is affirming that the market price will exceed 1.5 billion won 6 months after he decides to pay the balance. Usually, a month or two before the balance is paid, the bank loan is reviewed, and even if the contracted price does not exceed 1.5 billion won, the loan will not be issued if the market price rises due to the influence of other housing transactions.
The same is true of the case where an apartment is sold for sale. Some of the apartments in the Gwacheon Knowledge and Information Town, which attracted attention through the’lotto sale’, are likely to exceed 1.5 billion won when they move in, considering the nearby market price, so there is a high possibility that the balance will not be loaned out.
In order to avoid lending regulations, there are cases where P2P or lender loans are also touched by’eating mustard while crying’. It is a method of receiving a loan for a loan business at a high interest rate of over 8-10% per year, and after completing the registration, after three months, the loan is converted to a business loan in the mutual financial sector with a lower interest rate. It is a kind of expedient to bypass the LTV regulation by lending business funds and holding the collateral as an apartment. One loan consultant said, “The loan business has a high interest rate, which affects your credit score, but urgent landlords use this method in a situation where credit is blocked.”
Some point out that the standards for the regulation of loans should be realized. Ji-Hae Yoon, senior researcher at Real Estate 114, said, “There is a loan regulation of 1.5 billion won, which has the effect of catching the rise in expensive apartments.”
Reporter Shin Yeon-soo [email protected]
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