The complexity of real estate terminology contributes significantly to the perception that applying for housing is challenging. However, understanding these terms can make the housing application process more manageable. Let's start by addressing the question of whether a housing subscription account is truly essential.
Q1. Is a Housing Subscription Account Necessary When Buying a House?
In short, a housing subscription account is not an absolute necessity for purchasing a home. When buying an existing apartment, townhouse, or duplex, you usually don't require a housing subscription. However, if you want to purchase a newly constructed apartment through a pre-sale, then a housing subscription is indeed necessary.
For apartments built for those aged 30 and above, the law mandates that a lottery be held to select buyers. Since its establishment in 1977, around 27 million people in South Korea, representing nearly half of the population, have participated in housing lotteries. The key benefit of housing subscriptions is the opportunity to purchase new apartments at relatively lower prices. Government regulations on pre-sale prices and price caps help make new apartments more affordable, and with just 10-20% of the price as a down payment, taking part becomes feasible.
Q2. What Is the Difference Between "Housing Lottery" and "Apartment Lottery"?
While the terms might seem distinct, housing lottery and apartment lottery essentially refer to the same concept. As most of the properties involved are apartments, the two terms are used interchangeably.
Q3. Why Do We Say "Take Part in a Housing Subscription" When Buying a New Apartment?
Apartments are typically composed of multiple units, not just one. Given their large size, they cannot be sold as a single unit; thus, they are divided into multiple units for sale. The term "take part in a housing subscription" is used to express this concept. It is often used when a person successfully participates in the lottery and is granted the opportunity to purchase a unit. After that, the term "purchase" is typically used instead of "housing subscription."
Q4. Are There Different Timing and Types of Housing Subscriptions?
Understanding the timing of housing subscriptions requires an overview of the apartment construction process. Apartments cannot be built instantly; acquiring suitable land and obtaining local government permits are necessary prerequisites. Once permits are secured, construction begins, and this marks the starting point for housing subscriptions. Those who win the lottery during this phase are granted the right to purchase an apartment unit. After the construction is complete, apartments are ready for occupancy. The actual move-in period begins once legal procedures are completed and the apartments are deemed ready for use.
Q5. What's the Difference Between Redevelopment and Reconstruction?
Redevelopment refers to comprehensive area development that may extend to nearby regions, while reconstruction involves demolishing old buildings and constructing new ones, generally in the same area. Redevelopment is often a public project focused on urban infrastructure and landscape enhancement. Reconstruction, on the other hand, aims to improve living environments in areas with aged or substandard buildings. While redevelopment requires landowners to form a cooperative regardless of whether they agree with the project, reconstruction tends to be more private and individual-focused.