Comments by "kristine Sharp" (@kristinesharp6286) on "South Korea's Ponzi-Like Rental System Is Imploding" video.

  1. In the U.S. housing should take up no more than 28%-35% of income. Often times it is more. Everyone wants to get rich quick and do it all the same way. It’s a risky way to live. The real problem is people get into financial messes they can’t get out of easily and that is why Korea has a high suicide rate. You are not living rent free. You are borrowing money from the bank and paying interest which serves you nothing all to pay the gangster for allowing you to breath in the apartment or room in their territory. In the end you will give the bank with all the years paying interest on a jeonse to when you will pay interest on the mortgage. But the early you start paying interest on a mortgage, the earlier you get into your first home the better off you are. Less interest payment and the property you first buy and live in will increase in value like the next and last properties you live in. No way to earn enough to keep up with inflation. And because people think you need a permanent full time position and a paid for apartment to marry no one is. It’s not because suddenly everyone wants to be a monk. Peer pressure has gaslit them to thinking they don’t deserve what they want. So no one is having babies. Meaning in 20 years when the boomers die there will be no value in real estate. No wait, the government will allow apartments to be torn down for new ones or to make into green space. They want their irrational cut for capital gains and death tax. Cause they won’t let the market correct. Ever. So in 20 years there will be lonely 40 and 50 years olds, unmarried, too late for kids, about to be unemployed by 55 with 25 more years to keep living.
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  2. It’s insanity. A person takes out a bank loan to get a jeonse down payment which they get back at the end of two years. The landlord takes the money and invests it giving them their spare property. The next tenant can give an equal or greater deposit to the landlord. The gov can’t handle any fall in prices or corrections cause the landlord will default on the Jeonse deposit if there is not a new person showing up in two years with an equal or greater deposit.
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  3. Renters like it cause they are told to like it. They are told not to get a mortgage. Only prices could double by the time they earn enough money to buy outright. It’s a lunatic system. Two generations ago your MIL bought the apartment when you married. Three generations ago you would have lived with her. Adults have no idea about real estate until they are seniors.
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  4.  @benjamo0o0  collateral on a property that depends on market prices for the next renter to refund the money borrowed by the outgoing tenant. It’s why they can’t property values correct. In 48 years there will 20% less households. The only reason this didn’t go belly up in the 90’s is single person households and people living longer so not a sudden supply on the market.
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