Government's Public Villa Rental Program: Impact on Real Estate Market

The villa market is collapsing due to scams, leading to government intervention in purchasing 120,000 units for public rental at 90% market price.

### Understanding the Current State of the Villa and Officetel Markets and the Government's Public Rental Plan
* 🏡  Villa scams are at an all-time high, causing the villa market to collapse, making it **challenging to rent or sell villas**.
* 📉  Due to the aftermath of villa rental scams, villa construction has dried up, with the **supply of the villa market decreasing more than expected**.
* 🏢  Tenants are moving from villas to small and affordable apartments, leading to a **rise in apartment lease prices**.
* 🏠  The government has announced a plan to purchase and offer **120,000 villas and officetels for public rent** next year, with **70% of the allocation for the Seoul metropolitan area**.
* 💰  The government plans to offer the public rental units at around **10% cheaper than the market price**, expecting a loss of about **34 million won per unit**, which will be covered with **tax revenue**.
* 🏦  Personally, it is suggested that rather than the government artificially intervening in the real estate market, it would be best to leave it to the **free market economy** to establish a **stable real estate market**.
* 🔒  By preventing the rise in security deposits, it is possible to prevent the rise in housing prices and **rental fraud** directly.
* ☕️  The speaker is offering a **20% discount** on time difference stick coffee for about **100 minutes** as an event to express **gratitude to the viewers**.

Many of those living in villas or officetels probably do not know this. Hello, I am a filet pilot reading from home. I often talk to you about apartments, but many have asked if I have good information about villas or officetels. So, today I have prepared some information on that. Today's content is very important. The villa market has become quite strange and overheated, making it essential to utilize the best information available there. Studying today's content together will be helpful for you. Let's study together through the screen. Villa scams are at an all-time high. In the past, villa scams were not as common, but recently, news about villa scams involving hundreds of units has become quite common.

Oh, they're being quite stubborn. Thanks to that, the villa market has completely collapsed. It's just in ruins. That's why it's not easy to rent out villas or even sell them. This market has turned out like this. In fact, villas are a type of residence where a lot of people live, accounting for 51%, and apartments account for 49%. In these apartments, there are detached houses, villas, and also officetels. However, the villas here occupy most of these apartments. So, we can understand how big the villa market is and how many people are living in it. Due to the aftermath of villa rental scams, villa construction has dried up. Currently, villa construction has decreased to about one-tenth compared to the previous year. It's almost at a standstill. Because construction costs have risen a lot these days.

Even if you build an expensive villa, it's difficult to sell, and even trying to recover the funds by turning it into a long-term lease doesn't work well. Not only that, these days, there's a trend like value-up, so tearing down villas and building commercial buildings to sell are quite popular. Thanks to this trend, villas are gradually disappearing. Without even building new ones, existing villas are being demolished. In short, the supply of the villa market is decreasing more than expected. When the supply decreases, prices are supposed to go up, but the reason prices are not rising is because of the deep-rooted issues in the villa market. If you enter a villa and end up being scammed into a long-term lease, or even if you rent monthly and cannot get your deposit back, what will you do? What if the landlord runs away? These concerns are leading tenants to flock to apartments.

It's a trend to take them now. However, it doesn't mean that tenants who used to live in villas are moving to luxury or large apartments. Mostly, they are moving to small and affordable apartments. Consequently, the lease prices of apartments are rising first due to high demand. Some people are buying instead of renting, so the prices of small and affordable apartments are gradually increasing. In short, it wouldn't be an exaggeration to say that the trend of moving from villas is influencing the current rebound in housing prices. Of course, the impact of the new government's low-interest loans is also significant, along with the trend of moving from villas. The current rebound is not solely due to one factor but rather a combination of various factors.

Apartments are showing a slight rebound. If you look at it that way, it's good. It's not good for everything to be biased in one direction. So, the government has come up with measures. What kind of measures are they? Well, they say they will do villa business. It's just a joke. What this means is that the government will purchase 120,000 villas publicly and then provide them for public rent. They will purchase 20,000 existing units and 100,000 newly built units. However, this includes not only villas but also officetels. So, we can understand that the government will purchase villas and officetels to provide for rent. This will be done by next year, 120,000 units. Since it's by next year, a considerable number of public supplies will be available. Among these supplies, 70% will be allocated to the Seoul metropolitan area.

30% of the allocation is designated for non-capital regions, so roughly 70% of the capital region, about 84,000 households, will be leaving the capital region. It's a larger number than expected. 84,500 is a larger number than expected. But since the government is involved now, they can't offer it at a high price. They have to offer it at a lower price. According to the latest information, the deposit will be set at around 90% of the market price. So, they are saying they will offer it about 10% cheaper than the surrounding market prices. For example, if the market price for a lease is 50 million won, they will offer it at 10% cheaper, at 45 million won. If they buy at a lower price than the market value and sell at a lower price than the market value, what will happen? Losses will occur. They expect a loss of about 34 million won per unit. So, how will this be covered? It will be covered with taxes. It will be covered with tax revenue, the taxes you pay when you receive your salary.

When you buy a car, the taxes you pay, when you buy a house, these are the things that are used here. So, in the beginning, I made a bit of a joke like, Oh, the government is going to do real estate business. That's why I did that. So, it's good to use taxes for something, but it's even better to create conditions for the real estate market to function well than just using taxes. So, what's a bit regrettable is that there are no real estate experts, and policies that don't understand the core at all, whether they are good or bad. When we keep doing things with taxes like this, it's like eating into ourselves. Ultimately, if there is a lack of taxes, they will take more from us, and then unfold such policies again if there is a shortage.

I end up collecting more taxes, and personally, rather than that, I think that if we just stop excessive mortgage loans, a healthy jeonse (Korean housing rental system) market would be formed. Here, when we talk about jeonse loans, we are giving up to 80% jeonse loans, which I think is a bit excessive. Even if you have almost no money, you can get a jeonse loan and move in. So, even if the landlord calls for a high jeonse deposit, you can just get a jeonse loan and pay. This has created a problem. If we don't give out many jeonse loans, apply DSR (Debt Service Ratio), or limit it, then people won't be able to get many jeonse loans. If people can't get many jeonse loans, then landlords can't ask for high jeonse deposits. Naturally, if tenants can't be found, landlords have no choice but to lower the jeonse deposit. Most landlords who rent out jeonse like that have some financial flexibility.

It's not a lot, but people want to get as much security deposit as possible. That's inevitable in terms of human psychology. If we just restrict the security deposit loans like this, unreasonable security deposits will decrease a bit, and a healthier rental market can be formed. So, even just by preventing the rise in security deposits, we can prevent the rise in housing prices. Also, by preventing the rise in security deposits, we can prevent rental fraud directly. For example, if the price of a villa is 300 million won, now you can enter by paying 270 million or 280 million won with a security deposit loan. Then, even if the price of the villa drops by 10%, this becomes a risky security deposit. But security deposit loans are hardly available. Then ordinary people may have an extra 100 million or 200 million won. So, security deposits are formed around 150 million won. If that happens, a 300 million won villa won't suddenly go crazy.

A safe rental market is being formed, and this applies equally to apartments. So now it's a bit better to leave real estate to fate. And once you have to go through this pain, you have to go through this pain and then it becomes normal. So, personally, I hope the government will take a look at the lease loans once. But not everything the government does is like that. Since the days of Minister Kim Hyun-mi, whether it's the left or right government, from what I've seen, there is not a government that does things right. I don't know much about other things related to real estate because I'm not interested. But in terms of real estate, whether intentionally or because there really are no experts, it's a bit disappointing. Anyway, we need to take advantage of this opportunity well. We need to navigate through various policies and confusing policies.

By utilizing profitable opportunities well, you can enrich your mind. For example, if you are a tenant planning to rent a villa or an officetel, by entering a place where the government purchases and offers 90% cheaper lease, you can benefit from lower prices and, most importantly, avoid getting caught up in lease scams. You won't need to worry about complicated matters like how much loan the landlord has, whether it's safe, or the current market price. By utilizing public rental and such lease options facilitated by the government, it may be helpful for you. However, personally, rather than the government artificially intervening like that, it would be best to leave it to the free market economy to establish a stable real estate market. So, that's it for today's broadcast. Thank you for always watching my show diligently.

I feel grateful, and as soon as the video is uploaded, I still want to express my gratitude to those who took the time to watch my video. I will surprise you with a time difference stick coffee discount event. I am currently selling time difference stick coffee, which is really a best-selling product thanks to all of you. Still, now I want to give you some benefits, so I will open the time difference stick coffee to you at a 20% discounted price for about 100 minutes. I will fix the link in the comments, so if you click on that link, you can purchase it at a 20% discounted price. I can't do this too much because it will be a big loss for me, so I will do it for about 100 minutes. So, when the 100 minutes are up, it will end, and the price will return to normal.

Oh, please consider this. Nowadays, the price of coffee is quite expensive, right? It's much cheaper to use instant coffee sticks, which cost only 200 won per stick. So, I think it would be nice to enjoy a delicious coffee more affordably with that. Then, I hope you all have a happy day today. Thank you sincerely for always being with us. See you next time.

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재테크읽어주는 파일럿

Villa scams are on the rise, causing a collapse in the market and making it difficult to rent or sell villas.

Villa construction has decreased by about 90% due to rising costs and the trend of tearing down villas to build commercial buildings.

The market's supply is dwindling, leading to a shift towards apartments as tenants are concerned about being scammed or losing their deposits in the unstable villa market.

The Impact of Villa Relocation on Housing Prices

Tenants are shifting from villas to small, affordable apartments, causing a rise in lease prices due to high demand.

The government's plan to purchase 120,000 villas and officetels for public rent is expected to significantly increase public housing supplies, with a focus on offering them at a lower price than the market value.

The expected loss of revenue from selling the public housing at a lower price will be covered by tax revenue.

The Impact of Tax and Loan Policies on the Korean Real Estate Market

Tax policies and excessive mortgage loans are negatively impacting the Korean real estate market, leading to skyrocketing housing prices.

The high availability of jeonse loans is driving up housing deposits, creating financial strain for tenants.

Restricting security deposit loans could help stabilize housing prices and prevent rental fraud in the market.

Forming a Stable Rental Market: Government Intervention and Profitable Opportunities

The speaker expresses disappointment in government handling of real estate and hopes for better lease regulations.

They suggest taking advantage of government-subsidized lease options to avoid scams and complex real estate matters.

However, they ultimately believe in allowing the free market to establish a stable real estate environment.

Special Discount on Time Difference Stick Coffee

The speaker expresses gratitude to the viewers and announces a 20% discount on time difference stick coffee for 100 minutes.

The discounted price will be available through a provided link in the comments.

The speaker highlights the affordability and popularity of the product, emphasizing the benefits of using instant coffee sticks.