Yonhap News TV

House prices are falling, but interest rates are rising… Gap Investor Suffering Period

[앵커]

Over the past few years, Gap Investing has been very popular.

Beyond the fad, it was also a means of buying a house for people who are short of cash at the moment, but want to buy a house.

As house prices continue to fall, Bwlch Investment is deteriorating into an aemul complex.

Correspondent Choi Deok-jae.

[기자]

Lives in Siheung, Gyeonggi-do.

Recently, during a period of rising house prices, I bought a villa with a charter.

In a tight position to support even my parents-in-law, I tried to help the home by leaving a charter.

However, they complain that house prices, which were expected to continue to rise, are going down, and as the 3% base rate comes into effect, there is no demand for jeonse because of the increasing interest burden , so they are in a position to lose money again.

“I’m in stocks, but some things are minus 30%. If I buy a house for three meals, it won’t be minus, but I buy it with this mindset. I bought a villa worth 120 million. Then it I charted.”

From the 10th, the weekly apartment sales price across the country decreased by 0.23% and the jeonse price by 0.25%. This is the biggest drop since the survey began.

The market predicts that the Bank of Korea’s base rate will rise to 3.5% by the end of the year if the US takes a ‘giant step’ which raises the policy rate by 0.75%p again next month.

A further fall in house prices is inevitable, and it is noted that additional measures are needed for ordinary people who have a greater burden of repaying principal and interest.

“For the low income class, who are suffering from a sudden increase in interest rates, I think it would be an alternative to easing the requirements for a safe conversion loan that converts a variable rate into a fixed rate.”

Although many criticize that house prices are still in a bubble, it is said that measures for a soft landing are urgently needed.

This is Yonhap News TV, Choi Deok-jae. (DJY@yna.co.kr)

#gap investment #Rising interest rates #Interest burden

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