© Reuters. ‘Good landlord’ benefits… Will ‘all generations’ be caught?
The government has come up with a plan to stabilize the rental market, focusing on the exemption of the transfer tax exemption for one homeowner per household and the ‘two-year residence’ requirement required for the special deduction for long-term ownership for lessors who raise the rental price to less than 5%. The government took emergency measures as concerns grew that the rent, which had been bundled for the past 4 years, could rise at once due to the right to renew the contract (guaranteed for 2+2 years of rental period) and the monthly rent cap (up to 5% increase in rent) will put out
On the 21st, the government held the first real estate-related ministerial meeting presided over by the Deputy Prime Minister and Minister of Strategy and Finance Chu Kyeong-ho and announced the ‘Real Estate Market Stabilization Plan’. First of all, the two-year residence requirement to be recognized as a single homeowner will be exempted by 2024 for ‘good lessors (win-win lessors)’ who raise the rent by 5% or less compared to the previous contract. It’s a way to keep rents low while preventing landlords from evictions tenants to meet residency requirements. Previously, only one year was allowed. At the time of the start of the lease, even multi-homeowners will be recognized as a win-win landlord if they have a plan to convert to one house.
In order to increase the amount of rentals, the government has decided to increase the period for disposing of existing houses from six months to two years when new homebuyers in regulated areas receive a mortgage loan and to abolish the obligation to move into new homes. In addition, in order to reduce the burden on tenants, from August, it was decided to increase the deposit amount of the supporting jeonse loan (based on the metropolitan area) from 300 million won to 450 million won, and the loan limit from 120 million won to 180 million won. The monthly rent tax deduction rate for homeless householders will be raised from 10% to 12% for those earning less than 70 million won, and from 12% to 15% for those earning less than 55 million won.
In the market, there are many reactions to the government’s measures, saying, “It is an arduous measure that came out of a situation where it is difficult to change the rental law.” Although it may have the effect of temporarily stabilizing the price of jeonse, it is pointed out that the fundamental solution is to abolish the 3 Lease Act, including the cheonsei and monthly rent report system.
Reporter Do Byung-wook email@example.com
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