From March next year, special housing supply (special operation) and priority supply for households with newborns will be introduced. The purpose is to provide a wide range of housing opportunities to households with children, regardless of marital status. It is the first housing support method in Korea that focuses on ‘childbirth’. In addition, the ‘Newborn Special Loan’, which provides loans at ultra-low interest rates to households with a baby when purchasing a home, will be introduced in January next year.
■ The public sale newborn special treatment rate is expected to be 25-30%.
The target of the public sale newborn special treatment is households that became pregnant or gave birth within 2 years from the date of announcement of recruitment of residents. Marital status is not considered. However, there are household income and asset standards. Household income must be less than 150% of the average monthly income of urban workers (9.76 million won for a household of three or less as of this year), and assets must not exceed 379 million won.
When newborn special treatment is introduced at the public sales agency ‘New Home’, the current special treatment ratio is expected to change. For example, in the case of New Home ‘Sharing Type’, it is currently supplied at the rate of 15% for young people’s special attacks, 40% for newlyweds’ special attacks, 25% for first-time special attacks, and 20% for general supply. If a new special treatment for newborns is established, the rates of newlyweds and first-time special treatment may decrease.
The Ministry of Land, Infrastructure and Transport plans to allocate approximately 30,000 units from the annual public sales volume (based on licenses) to newborn special units starting next year. Accordingly, the newborn special treatment ratio of New Home, which will supply about 100,000 units annually by 2027, including 90,000 units next year, is expected to be around 25-30%, depending on the type (sharing type, selective type, general type). The specific special attack supply ratio will be confirmed in March next year.
In private sales, 20% is allocated to households that have given birth for the first time in their lives or for newlyweds. You can qualify for priority supply if you prove that you were pregnant or gave birth within two years from the date of the tenant recruitment announcement. The income requirement is 160% or less of the average monthly income of urban workers (10.41 million won for a household of three or less). The income standard is slightly higher compared to public sale newborn special treatment. The priority supply is expected to be 10,000 units per year.
In addition, priority supply of newborns is applied to public rentals, and 30,000 units (based on approval) are supplied first per year. The income standard for priority provision of public rental newborns is 100% or less of the ‘standard median income’ and assets of 361 million won or less in the case of construction rental. Newborn special treatment and priority supply are scheduled to be applied from March next year after revising related laws and preparing a subscription system.
■ Low-interest loans… Starting next
January, households with newborns will be able to use the ‘Newborn Special Loan’ when purchasing a house. This applies to non-homeowners who gave birth within two years of the loan application date. It applies to babies born this year. The income standard is 130 million won or less, which is nearly twice as high as the existing income standard of 70 million won for newlyweds and their first loan. The housing price standard will be expanded from 600 million won or less to 900 million won or less, and the loan limit will be expanded from 400 million won to 500 million won. However, the asset standard (506 million won) is the same as before. A special interest rate of 1.6-3.3% per year, which varies depending on income, is applied for 5 years. If you have more children after receiving a special loan, the loan interest rate per child will be reduced by 0.2% points, and the special interest rate application period will be extended by 5 years.
Households with an income of 130 million won or less can also apply for the newborn special lease loan. Compared to the current income requirement for unmarried and general jeonse loans of 50 million won or less, and the requirement for newlyweds of 60 million won or less, the standards have been significantly relaxed. The deposit standard for jeonse loans is 500 million won in the metropolitan area and 400 million won in regional areas, and the loan limit is 300 million won. Depending on income, a special interest rate of 1.1-3.0% per year is applied for 4 years.
■ Will it be a box office hit?
From March next year, the subscription system will also become more advantageous to households with childbirth and marriage. A new lottery system was established during the public housing special operation, and a standard of 200% (13.02 million won) or less of the average monthly income of urban workers is applied to dual-income households. Currently, when single, the special income requirement is less than 100% (general supply) of the average monthly income, and when married, it is less than 140% (special supply), so it has been pointed out that it is relatively바카라 disadvantageous to apply compared to when unmarried.
In addition, if a husband and a wife apply separately for a subscription announced on the same day and win multiple times, the application that was applied first will be processed as valid. Currently, in case of multiple wins, both are invalidated, so the opportunity to subscribe is effectively limited to one time. In addition, the standard for special supply of ‘multiple children’ has been changed from 3 children to 2 children, not only for public sales but also for private sales subscriptions, and is scheduled to be implemented from around October.
Currently, even if an applicant does not own a house or has a history of winning a subscription, if he or she has a spouse, he or she cannot apply for a special offer. However, starting next year, the spouse’s history of owning or winning a home before marriage will no longer be considered. However, at the time of application, both spouses must be without a home to apply for special treatment. Also, if you have won a special offer for public-supported private rental housing for young people, you do not have to worry about contract termination even if you get married after signing the contract. Considering the criticism that it prevents young people from getting married by requiring them to remain single during the move-in period, it is only possible to move in and renew the contract if you are unmarried at the time of signing the contract.
The real estate industry predicts that the benefits of special loans for newborns and special loans will attract the attention of actual consumers as they are unprecedented. Ham Young-jin, head of Zigbang Big Data Lab, said, “Unlike the special treatment for newlyweds, it is positive that the benefits are focused on the childbirth itself by giving priority for sale at the time of birth regardless of marital status.” “However, the income requirement is ‘less than 150-160% of the average monthly income of urban workers.’ “Dual-income couples who do not meet the requirements will remain in a blind spot where they do not receive benefits, and their complaints are expected to be raised,” he said.
However, 160% of the average monthly income of households with three or fewer people is 10.41 million won (annual income 124.92 million won) this year, and some say that it provides a wide range of benefits compared to the dual income standard (140%) for newlyweds. Newlyweds with high incomes and dual incomes exceeding this standard have also opened the way to challenge the special lottery system for public sales that will be established from March next year.