South Korean Baek Seung-min asked his wife to quit her nursing job, making their income low enough to be eligible for a quota system to help fulfill a dream they have: buying their own apartment in Seoul
The 35-year-old interior designer said giving up his wife’s 58 million won salary would improve their chances of securing a property after the government introduced a host of measures aimed at cooling rampant property prices.
“Seoul home prices grew way out of reach, we had to go all the way to Incheon to buy our place,” Baek said. “The government is crushing our dreams when they curb loans and tell us not to buy homes, it enrages me.” But tighter mortgage rules featuring vastly lower loan-to-value ratios, along with various tax penalties to discourage speculative transactions, are contributing to higher rents and larger down payment requirements - hurting those the policies are intended to help.
Anger at Moon’s economic policies has wiped out a surge in his approval ratings from the handling of the coronavirus pandemic, slipping back to a near nine-month low of 44.5%, according to a Real Meter survey on Thursday.On Tuesday, Finance Minister Hong Nam-ki said stabilising home prices was the government’s biggest public welfare policy goal as plans were announced to add more than 132,000 new homes in Seoul through 2028.
Hong Na-ri, a lawyer who rents a three-bedder with her twin daughters and husband in Seoul, says her family is priced out of the property market. He has sought to rein in the powerful chaebol conglomerates such as Samsung and Hyundai, which have seen their profits far outstrip household income growth. Tighter mortgage rules were introduced because the easier credit available under his predecessor was blamed for initially stoking the housing bubble.
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