Comments by "kristine Sharp" (@kristinesharp6286) on "RealLifeLore" channel.

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  6.  @Ben-kz2km  in Korea real estate is what people put money in. In the U.S. it is stocks. You see it was gain gain gain. Korea will never let people lose money in a place in Seoul. They will manipulate supply to keep that from happening. So you have a second property. You don’t just rent it out for 2K a month. What you do is rent it out for 600K for a two year period. It’s worth 800K. A person needing a place has money saved and gets a loan for the rest to rent. For 2 years you invest the 600K given at the start of the lease. You keep the dividends, etc… when the 2 years is up you say to the person here is your money back or you need another 20K for the next two year lease if they don’t want to move. If the 800K house is worth less than 800K there is a problem. If the person decides to move they need that 600K back for the next rental. They can get another rental for 570K. Where are you going to get the 30K extra you need cause the place you are renting to them won’t go for more than 570K either. The government can’t handle it when several landlords can’t give back the deposit. Huge housing crash would follow. So they manipulate the market. In 2015 the same property was worth 500K. So the rental amount was 350K. So in 2017 it went up. The landlord could say to current tenant I was 20K more or move. The landlord could easy get 375K from the next person and did giving the earlier renter back their 350 and having another 25K extra to invest. It called Jeonse loan. Google could explain it better? The landlord never wants to pull out their investment. They always want the person to stay or another renter to move in a few years later and give them more than prior renters deposit and for that to happen the market has to price the place higher. After many years renters save enough to buy and end up with a mortgage or paying cash.
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