Why Homeowners Can’t Live in Their Own Homes... (Appraiser Park Eun-jeong)
An independent exercise, not a statement by the video creator or verification of every claim in the video.
Can deposit repayment require cash even if the home price holds?
Suppose the existing deposit is KRW 500 million and a new tenant offers KRW 400 million. If the new deposit is available for repayment, the owner needs to cover KRW 100 million. If the owner moves in and receives no replacement deposit, the full KRW 500 million must come from other funds by the repayment date.
Check for yourself
- How much cash is needed in the interim if the old deposit is due before the new deposit arrives?
- Will cash on hand plus loans that can actually be funded by the due date cover the repayment?
Limits of application
The first calculation assumes the new deposit arrives on time. Actual borrowing capacity, liens, and guarantee terms depend on the contract and household.
- What to look for
- See how a jeonse deposit finances housing for a tenant and becomes a repayment obligation for the owner, then examine the cash needed at move-in and renewal.
- Why it matters
- Check whether the owner can face a cash shortfall at maturity even if the sale price holds. When reading auction news, track the sale rate including unsuccessful auctions alongside the sale-to-appraisal ratio for properties that sold.
Timeline
5 segmentsA jeonse deposit can fund part of the owner’s purchase, and cash is needed to return it when the lease ends. The guest explains why moving in can make repayment harder for an owner who will receive no replacement tenant’s deposit. Higher jeonse loan rates also change tenants’ financing costs.