“Will it rise as much as 400 million won in 5 years?” Gangnam expeditionary investment’稅 bomb dilemma’

Selling concerns are deepening as the tax for second-homeowners is expected to surge this year due to the strengthening of the taxation tax. The photo shows an apartment in downtown Seoul. [뉴스1]

# Kim Mo (65, Suseong-gu, Daegu) who bought a small apartment in Jamsil, Seoul in early 2018. There is also a house in Suseong-gu, so it is a second-resident. Even if I became a multi-homed person, I bought it without worrying about the tax. Because it is not two houses in the area subject to adjustment, it is not overstated and is subject to the general tax rate. However, as Suseong-gu was designated as an area subject to adjustment in November of last year, it is expected to be overstated starting this year, and taxes will increase sharply.

# Park Mo in her 70s with two apartments in Gangnam, Seoul. It is weighed on whether to dispose of it. The comprehensive real estate tax (deposit tax) is inconvenient to keep holding the house because it is likely to rise further. If you become a single homeowner, you receive special deductions such as the old age, and your taxes are much lower than that of a general single homeowner.

Mr. Park said, “From this year, the difference between the two-house and one-house tax is about 100 million won per year,” he said. “At this level, the tax will be higher than the rising house price.”

As June 1 approaches, the concerns of multi-homed people are deepening. On June 1, the tax reinforcement of last year’s July 10 countermeasures will take effect, and the tax rate will increase a lot due to an increase in the tax rate. Two-homed people, who account for most of the multi-homed people and whose tax tax is the highest, are standing at a crossroads. As of 2019, two-homed households accounted for 70% of all multi-homed households. It is 2.3 million households nationwide and 360,000 in Seoul.

Two local residents who have made a’far-investment’ to Seoul are hit by a property tax bomb this year. From June to December of last year, the government designated 47 regions, including Busan and Daegu, as target areas for adjustment. If you have two houses here and in Seoul, the tax rate for the tax on the tax will rise from the general rate last year to the middle rate this year.

VAT rate. Graphic = Reporter Kim Kyung-jin [email protected]

In the case of Mr. Kim in Suseong-gu, the final tax will almost quadruple from 17 million won last year to 62 million won this year. The tax base is not very different, but the tax rate has doubled from 1.4% to 3.6%.

Tax Accountant Lee Woo-jin said, “There have been many cases of buying Seoul houses without paying attention to the taxation tax since the provinces except for Sejong have been excluded from the areas subject to adjustment.”

Seoul expeditionary home purchases have increased a lot since 2017. The proportion of buyers living outside of Seoul was less than 20% by 2016, and rose to 25% last year. In 2017-20, there were 150,000 residents other than Seoul who purchased Seoul houses, and 22,000 of them bought houses in Gangnam 3 district (Gangnam, Seocho, Songpa-gu).

The same applies to local investments in Seoul. During the same period, 70,000 housing purchases were made by residents of Seoul outside the metropolitan area and Sejong City.

Lee said, “If a Seoul expedition investor wants to reduce their homes, they will have to dispose of their homes in Seoul for investment purposes, but they will have to weigh the taxes while watching the trend of home prices in Seoul and the release of local adjustment areas.”

Among the two homeowners who are contemplating disposing of their homes, it seems that they will tend to dispose of them more easily if they are older or hold the home for a long time. This is because one homeowner who is 60 years of age or older or who owns it for 5 years or more receives a maximum of 80% of tax reduction. The special deduction for old age and long-term retention is applied only to one-homed resident, and benefits are immediately received when one becomes one.

2 Homeowners vs. Long-term possession 1 Housing type tax rate. Graphic = Reporter Kim Kyung-jin [email protected]

According to tax accountant Kim Jong-pil’s simulation, the tax for two small houses living in Raemian Firstage medium-sized apartments in Banpo-dong, Seocho-gu, Seoul, and two small-sized two-household houses in Jamsil-dong, Jamsil-dong, Songpa-gu, will nearly double from 49 million won last year to 130 million won this year. From this year to 2025, the tax in total is 730 million won even if the house price does not rise. If Jamsil-Els is disposed of to become one home, and is over 70 years old and holds Raemian Firstage for more than 10 years and receives a special 80% deduction, this year’s final tax is only 5 million won. It is 30 million won by 2025. The difference in tax for five years is 700 million won.

Even if you live in Raemian Firstage and have a small and medium-sized apartment in Gangbuk, the tax difference between two houses and one house for the next five years is close to 500 million won.

If Suseong-gu Kim continues to own a Seoul house, the total tax for the next five years will be about 400 million won. If you sell a house in Seoul and become one house and receive 80% of the special deduction for the elderly and long-term retention, it is 4 million won for the same period. In the case of selling a house in Seoul after 5 years, over 60% of the house price that has risen in the meantime due to the heavy duty of the second-homeowner must be paid as transfer tax. Taxes can be more than the increase in house prices.

Tax Accountant Kim Jong-pil predicted, “The increase in sales of multi-homed people expected by the government will be determined by the disposition of housing by second-homeowners, whose tax increases the most this year due to the strengthened taxation.”

Experts believe that it will be after March if multi-homed sales increase. Since the publicly announced prices for apartment houses this year will be read in March, this year’s tax tax can be accurately predicted.

Park Won-gap, a senior real estate expert at Kookmin Bank, said, “When the house price is strong as it is now, the holding sentiment is stronger than disposition.” Reporter Ahn Jang-won [email protected]