"Same Home, But a Difference of Tens of Millions of Won" ... What You Need to Know Before Buying Your Own Home [Jip Nawara Ttukttak!]

[Financial News] From acquisition tax to holding tax and capital gains tax, the tax burden on the same home can vary by millions of won depending on how much you know before buying. In particular, after the government recently announced a tax reform plan, the tax burden structure is expected to change significantly, especially for high-end homes.
On the 14th, the YouTube channel 'Jip Nawara Ttukttak!' looked at the key points of the tax reform and homebuying strategies that people in their 20s and 30s, as well as newlyweds, need to know with Genesis Park, a real estate tax content creator and CEO of The Smart Company.
■ "This is not just a problem for ultra-luxury homes" ... Why people in their 20s and 30s are also affected
Park summed up the tax reform in one sentence: "It is a signal to live in your home, not just own it."
Earlier, through the tax reform plan announced on the 3rd, the government decided to apply different basic deduction standards for comprehensive real estate tax on one-home households depending on whether the owner lives in the home. The current basic deduction of 1.2 billion won will be raised to 1.4 billion won for residents and lowered to 900 million won for nonresidents. The deduction rate for nonresidents will also be cut from the current 60% to 20%.
As a result, for a homeowner aged 60 or older who owns a single home worth 2 billion won, or about 1.5 billion won in officially assessed value, and has not lived there for 10 years, the holding tax will rise from about 3.7 million won this year to about 4.95 million won in 2028. By contrast, if that person had lived there for 10 years under the same conditions, the holding tax would actually fall to about 3.53 million won.
Park explained, "In the past, regulations targeted multi-homeowners. Now, the policy is moving toward encouraging actual residence rather than simple ownership, even for single-home owners." He added, "Although it may appear to be a policy aimed at ultra-high-end homes, its impact is likely to spread across the entire market."
He stressed that people in their 20s and 30s should not think this reform has nothing to do with them.
Park said, "If the tax burden rises on ultra-high-end homes in Gangnam or along the Han River, owners will want to live in them themselves, and tenants will move to nearby areas." He added, "In the end, demand will be pushed down step by step, and the impact could reach the 1 billion to 2 billion won market as well."
That means owners worried about taxes may reduce their burden by moving to a lower-priced so-called 'less desirable single home.'
■ "For a first home, focus on acquisition tax, not capital gains tax" ... Advice on joint ownership for newlyweds
For people in their 20s and 30s preparing to buy their first home, he said, "The tax you should pay the most attention to when buying your first home is not capital gains tax but acquisition tax." He added, "It is a good idea to set aside about 5% of the home price separately for upfront costs such as acquisition tax, legal fees, and brokerage commissions."
He also advised that there is no need to worry too much about holding tax and capital gains tax.
He explained, "If your first home is worth around 1 billion to 1.5 billion won, the holding tax burden is not that large." He added, "Worrying first about capital gains tax on a home you have not even sold yet is not the priority."
On whether newlyweds should register the home under joint ownership, he advised, "If possible, joint ownership is better."
Genesis Park said, "At first, the difference may not seem large, but when you move on to your next home, it is easier to explain the source of funds. You can also expect tax-saving benefits in future gift or transfer processes."
He also stressed that if parents provide financial support, it is important to clearly distinguish between a gift and a loan. A loan contract that exists only on paper could be judged as a gift during a tax audit.
■ "Do not leave the market. Build experience"
He also said that although the market has become more difficult under the new reform, people should not give up on buying a home.
Genesis Park said, "Homes have always been expensive." He added, "What matters is not leaving the market and continuing to visit properties and build experience."
He went on to say, "For a first home, it is realistic to buy something within your means first rather than looking for a perfect home, and then focus on your main job to grow your assets." He emphasized, "In the end, in real estate too, the people with more experience are the ones who seize opportunities."
More details can be found on the YouTube channel 'Jip Nawara Ttukttak!'.

[email protected] Choi Ga-young Reporter