Oh why does it rise… Manager Kim’s 2020 home economy failed to prepare my home again

Manager Kim, who hesitated to arrange my house for two years. The end of this year was the same. This is because I did not know that last spring, which I thought was the beginning of a bear market, would be the bottom. The house price of the coworkers who bought a house in a hurry saying that they would get on the last car has risen hundreds of millions of dollars. Manager Kim’s deposit for a private house also jumped several hundred million won. While there were so many policies pouring out, I believed in the government and waited, but the opportunity went away again. People around him called him a’thunderbolt’. I looked back at the year of Manager Kim who swallowed Bunru again.

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February-The power of countermeasures

At the beginning of the year, the house price front was quiet. Weekly apartment prices in Gangnam, Seocho, and Songpa-gu, Seoul, began to decline. The ’12/16 measures’ that came out at the end of 2019 has begun to take effect. Ascendants said, “It will rise after the Lunar New Year holiday,” as they always did, and poured out a parrot-like story. But even after the holidays, that didn’t happen.

‘So it is. Now it’s time to break.’ Manager Kim nodded. The story of rising house prices was limited to some remote metropolitan areas. The house price in Suwon, where Lee in the same department came to check the right to sell, jumped by hundreds of millions of dollars. Then, as if the government had been waiting, they immediately came up with measures. Suwon Yeongtong, Gwonseon·Jangan-gu, and Anyang Manan and Uiwang-gu were grouped as target areas for adjustment. The loan limit was further reduced. The LTV ratio (LTV), which used to be applied at 60%, has been changed to apply 30% for excess and 50% for less than 900 million won. Manager Kim sang joyfully. This is because Lee, who had even prepared for a new job, saying that he would make a lot of money through investment, eventually gave up the purchase. My stomach almost hurt.

April-A precursor to a bear market?

The new coronavirus infection (Corona 19) pandemic has changed many things. The apartment model house, which I used to visit from time to time, has nowhere to open. Among the brokerage bosses, even when they went to see the house, it was said that the landlord did not open the door. So, the house price plummeted. There was even news that’Acro River Park’ was traded 700 million won away from the high price. It was a time when tax cuts were increasing ahead of the holding tax base date (June 1), but it was an unusual sign. In statistics, a minus (-) began to appear in front of the change rate of apartment prices in Seoul. As the general election ended with the ruling party’s overwhelming victory, the decline in house prices began accelerating as expectations for deregulation declined. Manager Kim thought the bear market had begun. The prospects of his favorite real estate YouTube channels were not very different. I didn’t know then. That the floor is passing by.

May-memories from 10 years ago

The house price is also quiet, but unexpected supply measures came out. The government announced that it would introduce’public redevelopment’. Manager Kim recalled the memories of Newtown. Most of the business he started when he was in his 20s wasn’t finished until the end of his 30s. How much has the price of the houses that are all being demolished rise again? The merchants who would mislead investors, saying, “I still have to buy a villa now,” were outstanding. In Kim’s eyes, the word Yongsan International Business District was also heard. It also included a plan to build many houses in the Yongsan maintenance window area while promoting the project again. Yongsan, which Manager Kim remembers, has always been a place 10 years later. Even 10 years ago, he said,’After 10 years, I will cross Gangnam.’

At the end of the countermeasure, there was also a description of the 3rd new town. Pre-subscription has been revived. This was also a relic of the Bogeumjari House 10 years ago. Manager Kim remembered the catastrophe at the time. A pre-subscription that won in their 30s and moved in in their 40s, and the restriction on resale is lifted in their 50s. Still, I was excited to start pre-subscription after a year.

June-an ominous signal

Statistically, the decline in house prices, which continued for more than two months, stopped like a lie as soon as June came. There have been a lot of players going to make gap investments, picking only places where apartments have been supplying a lot and prices have dropped significantly, such as in Gyeongsangbuk-do and Gyeongnam Changwon. Manager Kim was tempted to say that it would cost 5 million won, but he endured hard. The same was true of Cheongju, North Chungcheong Province, where a radiation accelerator or a particle accelerator is entered. He gave a speech to his wife about giving real estate to his wife, saying, “You have to pass it down for about 10 years before you wake up.” The point was that it had already reached the top of the bubble.

In fact, the problem was local. Seoul house prices have moved gently, but local apartment prices have increased from around this time. The government also moved swiftly. It quickly announced the ‘6-17 measures’, which included expansion of regulated areas and strengthening of lending regulations. In the case of corporate investors, strong regulations have emerged that make the expression “a nail in a coffin” appropriate. This is because the comprehensive real estate tax deduction (600 million won) was abolished, a single tax rate (6%) was applied, and the corporate tax was raised at the same time. Manager Kim also predicted where the house prices would fall by the end of the year by arranging the areas where corporate investment had been popular with Excel. But there was no Seoul.

July-I think’real estate is over’

It has been more than half a year since loans for apartments exceeding 1.5 billion won were banned in the overheated district, but the world was wide and there were many rich people. News section of major portal site filled with news that 59 square meters of exclusive area for’Raemian Daechi Palace’ in Daechi-dong, Seoul, was actually sold for 2.5 billion won. This is because it was the second apartment ever traded with more than 100 million won per 3.3㎡.

“The media always raises the price of a house in Gangnam.” Manager Kim commented on the news like this. The media weren’t the only love for Gangnam. Soon after, the love of Gangnam by senior Blue House officials became a hot topic. President Roh Young-min, who was urging to organize multi-households, sold Cheongju apartments instead of Banpo, and Min Jeong-suk Kim Jo-won gave up his job instead of the house.

As the real estate market became turbulent, the government came up with additional measures. The sign of the ‘7·10 countermeasures’ that they would never buy a house was firm. The acquisition tax was changed to apply heavy taxation up to 12% for multi-homed people, and the maximum tax rate for the final tax has nearly doubled from 3.2% to 6.0%. The heavy duty rate of the transfer tax also increased by 10 percentage points from the previous year. The three homeowners in the area subject to adjustment have been subject to a maximum tax rate of 62%, but since June 1, 2021, the maximum rate of 75% has been applied. This is because the income tax tax base section overlapped until the new establishment. From the moment you buy a home to while you hold it, and from the moment you sell it, high taxes have been levied on it. ‘Is there anybody to buy a house even though I’m here?’ Manager Kim thought that the real estate was really over. And I even thought a little that I was good at not buying it.

August-Measures, when the hell will end

However, there were still many people buying houses. During the longest rainy season in history, Sejong house prices broke the record of the elongation rate. Since the administrative capital was relocated, the weekly increase rate during military service was 2.96%-2.77%-2.48%-1.59%. The rate of increase of 2.96% was the highest since the Korea Real Estate Agency prepared weekly statistics. It also meant that the cumulative amount exceeded 100% if it lasted for one year. Of course, the house price has already more than doubled compared to the beginning of the year. Around that time, the word’thunderbolt’ came out. It meant that he wasn’t a’thunderbolt rich’ who was suddenly hit by a windfall, but that he was relatively poor by doing nothing. It was also referring to Manager Kim.

The minister was called to the Blue House. The president’s order was to somehow come up with a plan to expand supply. Real estate measures were poured out for three consecutive months, but a new measure was poised to come out within a month of the last measure. As the controversy over the lifting of the green belt (development restricted area) continued, the President took the initiative to clear the traffic. Immediately, the ‘8·4 measures’ came out. It was the government that never said to be’spiritual’, but it was a supply measure that attracted even the soul. The concept of equity-storage housing, in which the pollinator buys shares of the apartment little by little for 20 years, has emerged, and public participation has also been introduced for reconstruction. The first special supply in life, which existed only in public sales, was expanded to private apartments. It is a method of supplying all quantities by lottery. Manager Kim felt a little bad. At the end of the honeymoon period, the special supply for newlyweds expanded, but this time the lottery system expanded as additional stores were gradually collected. There is also cold water up and down.

November-Jeonseinan again

House price was a matter of choice. Even if the price went up, it would be enough if you didn’t buy it. However, the full set was a matter of survival. When the right to apply for contract renewal and the Jeonwol World Limit System were implemented, Manager Kim was also happy. Until the landlord asks you to raise the cash deposit by 200 million won.

When Manager Kim exercised his right to apply for contract renewal, he explained the fact that the jeonwol world limited system was applied retrospectively to the existing contract, and the landlord confronted him saying that he would move in himself. The landlord living in Gangnam didn’t seem to be moving, but manager Kim had no way to prove it.

In this way, the government came out again as the nationwide jeonse price broke the record for the highest growth rate. This time it was a pre-generation book. It came out loud, but the point was shabby. Most of them were villas, even though they were going to introduce a public charter. The competition rate for new apartment subscriptions also exceeded the basic 200:1 and 300:1. There was no place where there was no fire.

December-coming again this year

After being expelled from the house where he lived in Joolji, Manager Kim hastily went to see the private house. It’s narrower and older than the house I lived in, but I had to pay 50 million won more for the deposit. The brokerage explained that it is a valuable sale these days. My wife wasn’t even irritated anymore. So it was more scary.

By the time the contract was stamped, ’12/17 measures’ came out. It is a content that 36 places nationwide, including Nam-gu, Ulsan, will be designated as target areas for adjustment. It was the moment when 112 of the 250 local governments were regulated and the government official mark was worn. It also meant that there was no place not to climb. Among them was Seongsan-gu, Changwon, who hesitated to invest. ‘This is the same procedure as the bearish market 10 years ago.’ While placing the order again, Manager Kim’s 2020 is ending.

Reporter Hyungjin Jeon [email protected]