An average of 18% compared to the previous year ↓… House prices fall, deposit reversed
Adjusted warranty insurance standards in May, reduced warranty amount… More difficult full refund
He informed Mr. And (32) the landlord would “move” before the lease contract expires in May. The renewal request was not used. However, the answer from the landlord was, “Since you can’t afford to pay the deposit, find a new tenant.”
When Mr. A moved into a villa (unique area 59㎡) in Michuhol-gu, Incheon two years ago, he won the deposit and paid 229 million. However, the actual transaction price of the villa is currently down to 115 million won. At the current market price, even if you sell your house at auction, you cannot get even half of the deposit back. It is almost impossible to find a new tenant at the level of the deposit that Mr. A.
As the government reduced the average house price of flats by 18.61% compared to the previous year on the 25th, tenants who moved in when house prices were on the rise two years ago were in a position to lose their deposit in back. In the case of a landlord who does not have financial power, he receives a deposit from a new tenant and pays the deposit to the current tenant, because the official price of the house has dropped significantly, making it difficult to give the full amount . deposit to the existing tenant even if the deposit is received by the new tenant.
It is possible to sell a house by auction or file a lawsuit against the landlord, but it is also realistically difficult for ordinary people to fight a lawsuit while continuing their business. In Incheon (-24.04%), where Mr A lives, the official price dropped significantly nationwide after Sejong (-30.68%).
As a measure to prevent charter fraud, the government has adjusted the city housing corporation’s (HUG) deposit return guarantee subscription standard from 100% to 90% from May, and the housing price calculation standard from 150% to 140% of the price official Lowering it to 2 is also bad news for existing tenants. This is because it is only possible to register for guarantee insurance up to ‘126% (140% × 90%) of the published price’, resulting in an additional reduction in the jeonse deposit.
After the ‘Villa King’ incident, most of the tenants subscribe to HUG Jeonse’s deposit return guarantee insurance.
This is because if the landlord has a problem, he or she can get the jeonse deposit back from HUG. As a result, the amount of return guarantee insurance that can be subscribed to HUG actually becomes a deposit for jeonse.
For example, the official price of the villa where Mr A lives is 105 million won this year, and now the charter deposit of 154.5 million won is guaranteed by HUG guarantee insurance, but in the future no but up to 132.3 million that can be guaranteed won.
Mr A complained, “Because of ‘charter fraud’ these days, if you can’t sign up for HUG guarantee insurance, you won’t move in at all. How can I find a new tenant in this situation?”
However, the government is not at the level of concern.
The Ministry of Land, Infrastructure and Transport said in a recent press release, “Given the recent sharp decline in jeonse prices, houses that are difficult to obtain warranty insurance will be limited, except for the proportion of houses with jeonse rental rates more than 100%.” The Ministry of Land, Transport and Maritime Affairs added, “Specifically, the market environment for tenant advantage is created, and even if the jeonse rate exceeds 90%, the lessee can purchase warranty insurance through choose a monthly rental with a guarantee.”
Contrary to the government’s explanation, it is very likely that disputes between landlords and tenants who have prepared houses through ‘gap investment’ will continue to increase during a period of rapid rise in house prices due to a fall in official prices.
Looking at the status of real estate registration applications in the Supreme Court Registration Information Plaza on the 28th, the number of real estate applications for lease registration orders for joint buildings (flats, villas, etc.) last month totaled 3,094 of cases across the country, a more than fourfold increase compared to February last year (704 cases). Among them, the metropolitan area (Seoul, Gyeonggi, Incheon) accounted for 79.5% (2460 cases) of all lease registration orders.
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