Young South Koreans hit by real estate scam 

I think the problem is people don't want to sell it

Coz there's not enough place to buy. When u sign up for build to own, u will go through tideos process of selection and if u are single u have the least chance coz they prioritize couple or couple with kids.

but they are not paying rent. it's usually 50%, it's like buying because you don't pay rents. and after the contract, you get full deposit back. If tiny condo is $1M to buy in Seoul, you only need $500k to live rent free, $1M and $500k is huge difference. If you think about it, it's better than renting. In renting, you pay rent and you get noting back when you move out. in this case, they get the loan to pay the deposit, they don't pay rent, instead they pay down the mortgage, money they will get back when they move out.

You can only buy what the seller wants to sell. Why would an owner sell? Ever?

The Korean Government should allow you to pay the remaining 30% to legally own the property. This kind of solution may be straightforward but seems very difficult to implement in reality. What if the original owner already sold it to another interested buyer? Because you are just paying the rent and not legally owned it, the lanlord may will be can sell it to another buyer thus doubling his income. I think this is the root of the problem, because the lanlord can sell his property even though he already recieved the rent. And go abroad where autorities will have difficult finding him.

Tbh, i don't..with a system like that, that scheme is actually the first red flag i see..😅

Most smart people would rather buy a home. If you young and have 70% of property value in cash you can take a loan to cover the 30% and purchase a home instead of renting. I took out a fixed rate home loan and when I was 37 years my loan ended

​@@elainelindsey1306 Most 'Jeonse' tenant take out loan to cover the 70% needed. People do not have cash equivalents to 50% of the property value. That's why their are in heavy debt if the tenant disappear

​@@elainelindsey1306life is not that easy in South Korea

@@elainelindsey1306 «smart people» a lot of people don’t have the ability to save up, those of us who do myself included are very lucky.

True the agent has due diligence to vet out the "scammer" landlord, but the system of paying 70% to live rent free for 2 years is terrible anyways. In the states you usually just pay one month deposit + first month's rent + maybe other fees and then you pay each month.

@realdeal8607 can't take the property, it's probably a deal that didn't get necessary vetting process. The units are sold and leased at the same time. I bet one of the 2 is a private matter. if an unit is listed for lease and selling at the same time, it should have been picked up by the system.

@realdeal8607 In such a case, they can't take the property because the landlord didn't own the property in the first place. Since the loans are made in such a way that there is no collateral between the land lord and the tenant, and acts more like a collateral less personal loan. If it was the case of the landlord going bankrupt, it means that the house would go to whoever the land lord borrowed money from, with the house as collateral. What the tenants did is essentially give the land lord an unsecured loan, which means if the land lord is unable to pay the tenant back, the tenants get nothing in return and are last in line of debt repayment as the house would first go to whoever has a secured loan with the land owner. Now, if it was a pure scam and the land lord had no house in the first place, I would say its the housing agent's fault and they should assume all liabilities as they should have vetted the land lord. Too bad korea doesn't work this way.

Dont worry india Population will hit 1.7b

Why is birth rate even brought up here. Yes, it's low, but its a world wide occurring problem.

@@willlee9550 please rewatch the video to find out why.

@@willlee9550 cause sk's birth rate is the lowest among oecd

@@KF-zb6gi still not relevant wit this issue

Problem is the property is not owned by the scammer in the first place. They act like they are the owner. Of if they are the owner they already mortgage it to the max to the bank. So bank get their slice first.

The property didn't belong to the person renting it. If you had an owner of a property, they would be pretty easy to find.

​@@alvinsoehendrywijayathen how the scammer got the access to the house and give them to the victim?

in Europe you go to a notary with all the documents and there he asks for the owner's documents,

if I were in their place, I would ask for the identity document and the documents from the house to check if it is theirs

I wonder how the tenants and landlords agree on the value of the properties? If an appraisal is to be conducted before every time a lease is to be signed, it is a laborious process.

Thank you for the explanations

@@AlfordLau surprisingly, the market is heavily standardized enough, you can just follow the market price for similar properties, with a bit of an offset per studio. In the process, the tenant side doesn’t really have any right to say about any of it in particular.

Invest on something with dividends to pay the rent... in another country if the deposit is more than 2/3 months (0.3%) noone will be interested let alone 40% 😂

It doesn't work like that in Korea and i think other countries like Japan. So, basically, to prevent the tenant from running away with let's say ruined property, they ask the tenant to provide a guarantee in the form of money deposit to the landlord. So basically, the landlord would cut a portion of that money to pay the rent cost and in exchange you could stay there, rent free for like 2 years. After calculating all costs including rent cost, repair cost etc..you would get your money back minus all those costs I mentioned above.

@@zenaku4 @zenaku4 you're half right. You can rent or follow this system. The tenant takes a loan from the bank to rent for 2 years. Because how things work in South Korea these loans have low interests. The renter uses this sum to invest and profit then he returns the same loan to the tenant which is given back to the bank plus small interests. If the renter fails to give back the loan the bank takes the house which value is higher than the loan (70% value) but this leaves the tenant without an house and they still have to pay the interests (plus something else I think).

@@Blockhead2 Ahhh, then the root problem is the 'how things work in S Korea' that let tenants take loans with low interest. Why should the tenants have to be the bearer of the risk while the renter reap benefits? This is just plain foolish.

@@zenaku4 Thank you for the insight info. The tenant and the owner should agree with the terms as providing $30k for damages alone is too much.

It's not renting... tenants don't pay rent. landlords make the money by using the large deposit to invest or earn interest.

They pay deposit of 70% but get free to live in that property. Usually the deposit come from lending from banks. If you choose to rent it's more than bank rate

Did u not watch the video? The 'landlord' isnt authorized to lease the house.... so probably not their house

They flew out already

#Technology

@@AnaPaulinacom my point is why will u pay if u cannot even see the owner?

​@@obitobitan931you need the place to stay, how hard is that to understand? If you have a choice then you would choose, if you don't then you have to follow the system right?

@@zenaku4 then don't pay money if u don't see the landlord

@@obitobitan931 then you have no place to stay..it's their system, unless you don't want to follow the system then that would be different case. Here is the reality,.a lot of youngsters move to Seoul to work. They need a place to stay or they would be homeless. Then they would rent a place, but to rent you have to follow this system..this is no way out, unlike in US, you can't just buy a campervan and stay in the parking lot somewhere..

Maybe bc your brain think too much about your own system. Here as explained in the video, you lend 70% for 2 years, live for free for 2 years, and at the end, normally the renter give you back the full amount. It is basically interest free loan. The problem is when the 2 years end, and the owner doesn't give back the 70% as specified in their contract

@@kairoslo6031 exactly, this is not renting, this is a loan masquerading as one. do you know how difficult it is to find a trustworthy person to loan them such amount of money and that kind of time to return it? even banks have multiple procedures and collateral. even then there would still be many that failed to return the loan.

@@kairoslo6031the point is if you have 70%, you should be able to get 100%. Then why not buy the house alright? Then you get to live free as well, and receive the property.

@@pqtaxmom Because if you pay 100%, you lose the 100% but earn the house. Here you lose 70% for 2 years, and get it back 2 years later. I understand what you mean, but please try to see the advantage of living for free 2 years too. It is hard to understand for us as it is a different system than ours

Maybe bc your brain think too much about your own system. Here as explained in the video, you lend 70% for 2 years, live for free for 2 years, and at the end, normally the renter give you back the full amount. It is basically interest free loan. The problem is when the 2 years end, and the owner doesn't give back the 70% as specified in their contract

You must find it diabolical that in china they buy homes before buildings are finished, and have NO land rights too? Different countries, different rules.

What if he was using fake ID and already sold the property..or even worse he never own property to begin with?

@@zenaku4 how do you even have the house key go inside the property if you don't own it?

They don't have to, let's say it like this Mr A, is the original owner of the property. B is a scammer and C is the victim. First, B would steal Mr A ID, including his personal info, land certificate etc. how is that possible? If B is the ex agents, an hacker, or someone with connection with proper agents, he could access that info. Pretending to be Mr A, he would listing Mr A property for rent offer or cheaper offer without agents. C who are desperate for a place to stay in Seoul, find this offering, and cluelessly transfer the deposits. B could convince C because the website he uses is legal. Then after the deposit is given, he would promise the key or time to survey. Then B would use delaying tactic while removing all trace of him in social media etc..then he would gone,.rinse and repeat. Ofc this tactics would not work 100% but some actually fall for it because of their naivety and desperation for a place to stay.

What if the landlords use that property as bank collateral and scam more than 1 people into give him deposit money..who that property belong to? 1 tenant, 2 tenant, or Bank? 😅

@@zenaku4 Didn't the bank usually ask for your land certificate if you use it as collateral? If the landlord can scam more than one parties, then the fault lies on the real estate agent.

Unfortunately in most cases, the property eventually belongs to other creditors. They need to liquidate the houses to get their money back from the landlords. And the tenants happen to be the ones bearing the load, because of this faulty, flawed housing scheme.

@@soymackerel7786 Well, the fault still lies on the real estate agency, don't they do background check at all? at best they're aiding the scam, at worst, they're in it too.

There is logic just think more lol

When it goes well, there is logic into it, even though it's incredibly risky. For my first two years in Seoul, we did a jeonse with my husband. Because we were newly wed, we were able to get a jeonse loan from the bank to get that 70% of property value, at 1% interest. We gave that to the owner, lived there for 2 years, got our money back when the contract ended, and moved. During those two years, we didn't pay rent, we only had to pay the interest of the loan to the bank monthly, so we could live in the very center of Seoul for 150 000 wons a month. That being said, I do hate that system and I don't want to do it again. I first accepted because everyone in my Korean family insisted, told me that this was the Korean way, that it was completely normal in Korea and blablabla. We got lucky for those two years, but I hear so many horror stories of landlords running away with the money, or just not being able to pay back the tenants, or selling the property to people with a lot of debts who cannot repay, etc, that I'm trying to put my foot down and convince my husband to not use that system ever again.

@@Raphanne oh I see. Thank you for the explanation. That’s how ppl say they can save money for their future home. Now I get it. But it is still highly risky. Glad u get away with it

@@yeowchongong5608 thank you, I hope we don´t get scammed either. ^^ We´re under another jeonse contract at the moment but the landlords are my in-laws, so we can save quite a bit. Apart from them, I don´t trust anyone with that kind of money.

​@@Raphanne Can you afford kids under that contract?

to buy something, the owner has to be willing to sell

there is contract, but as every contract, the signer can disappear with the cash,

Lol, do you think it would be that easy? If you remove the practice the landlord will be in a disadvantageous position. If I were in the SK government, i would rather push real estate agents to make stricter restrictions on who could rent their property. For example, add requirements that the landlord have to own the property and the property has to be debt free. So, in case the landlord failed to return the deposit the government or agents could sell the property and give the money back to the tenant.

Yep, same as your wife. The other day i saw her entering into a hotel's elevator with another man.

​@@Paul-H-Wolfram6608your mom does it for free. I penetrated her vachina with full vigor and you were born later

Yea, come stay in Pyongyang!

I guess they bribe the gov

They are approving this kind of system to begin with,.this is basically how capitalist trying to push economy beyond their nominal GDP..😅

High GDP means nothing if income equality and living cost are high..the only advantage would be if somehow you have double citizenship in a cheap country, so you earn money in SK and invest your money to retired in cheap country,.hold on, so this is the reason why so many white people are retiring in Thailand..😂

2-3 months to landlord plus 1 month for ultilities deposit are quite alot already

2 months of rent deposit generally in Hong Kong too

1 month rent + 1 month rent deposit to start renting/living in any house/apartment in the US

You must find it diabolical that in china they buy homes before buildings are finished, and have NO land rights too? Different countries, different rules.

Korea's birth rate is the highest in the world. 3 billion people in the world are Korean .