The house I was watching rose by 800 million. Should I buy it now?

This couple, who work near Pangyo Station, wants to secure a stable residence before their two children enter elementary school. Their current assets are approximately 2.2 to 2.3 billion won.

The apartment they looked into in Baekhyeon-dong was previously in the 1.8 to 2 billion won range, but it recently surged to 2.8 billion won, leading them into deep 고민 (worry) about purchasing a home. The couple is now conflicted about whether to stay in their current jeonse home due to the soaring prices or to look for properties in other areas.

The couple who submitted the story is considering five residential strategies for their current real estate situation. First, 'yeongkkeul' (all-in) purchasing a Pangyo apartment by mobilizing all their 2.2 billion won funds. Second, exploring areas near Pangyo, such as Imae-dong in Bundang.

Third, using the jeonse contract renewal claim to stay in their current residence longer. Fourth, planning to look for auction or distressed properties in Wirye New Town. Finally, they are also considering purchasing in the Wirye area first and commuting until they can change jobs.

Generations busy with work and childcare often realize changes in the real estate market late due to such information asymmetry.

By only encountering information they are interested in, they fail to notice significant market changes like the rapid rise in housing prices in specific areas. This often acts as a major reason for missing opportunities to build assets, especially during periods of rapid real estate market change. The couple contemplating home purchase is an example of realizing the surge in housing prices late due to the influence of this algorithm.

The phenomenon of Pangyo apartment prices surging from 1.8-2 billion won last year to 2.8 billion won currently has several implications. This is interpreted as a reflection of strong demand for work-life proximity in Pangyo. It also demonstrates that asset values can rapidly increase in a short period.

What was once around 2 billion won has now become the minimum barrier for market entry. Such changes pose a significant burden even for high-income earners who previously hesitated to buy a home, sending an important message about market trends.

This is a 40% surge in just a year and a half. Such a rate of increase is impossible for ordinary workers to keep up with through savings alone.

Even a high-income couple earning 250 million won annually cannot keep pace with rising housing prices through savings alone. The steep increase in real estate asset values reveals a structural problem that makes it difficult to accumulate wealth solely through earned income.

If a jeonse price for an apartment worth 2 billion won is 1 billion won, many choose jeonse due to the appeal of solving their housing with relatively less capital. However, this appeal of jeonse actually acts as a key factor in widening the asset gap in a rising market.

Jeonse residency prevents one from benefiting from rising real estate prices, creating an effect similar to the 'curse of jeonse'. Jeonse residents miss out on opportunities for asset growth while housing prices rise.

The couple experienced a period from 2023 to 2024 when home prices fell below 2 billion won. They deemed prices between 1.8 and 2 billion won unaffordable and gave up on purchasing. A psychological price aversion occurred when a house that was 1.6 billion won a year ago suddenly surged to 2 billion won.

In this situation, jeonse prices remained relatively stable in the 900 million won range, leading the couple to choose to wait and see instead of buying. The experience of a market downturn coupled with temporary jeonse stability created the psychological backdrop for delaying home purchases.

The approach of saving enough money before buying a house usually makes it difficult to keep up with the speed of rising housing prices. This is like marriage; if the order is reversed, achieving the goal becomes difficult. If housing prices continue to rise while saving money, it eventually becomes hard to reach the goal.

In the real estate market, buying a house first and then repaying the loan is presented as a more realistic solution. Home purchase is a primary means of asset growth, so reversing this order is an effective way to form assets.

The government's real estate policies aim to suppress purchase demand and strengthen the obligation to live in the purchased property. This can be summarized by two questions: 'Who will be allowed to buy?' and 'Who will be allowed to live?' For example, in land transaction 허가구역 (permit zones), tenants can lose their right of residency.

This policy stance leads to a contradictory dilemma where buying is difficult, and living as a tenant is also difficult. Ultimately, it creates a contradictory situation that causes hardship for both those who wish to buy a home and those who wish to live on jeonse.

They face the reality of being displaced from their homes and must consider a 100% possibility of eviction within two years. This suggests that renewing a jeonse contract no longer brings substantial benefits and is not a good choice.

High-end tenants are pressured to find new residences amidst housing insecurity. Experts recommended finding realistic housing alternatives by moving rather than renewing jeonse contracts.

It is argued that a neighborhood where one lives on jeonse is not truly 'my neighborhood.' A region is defined as 'my neighborhood' only when one has the financial capability to purchase and reside in that home. Comparing it to driving a rental car without owning it, the difference between ownership and residency is emphasized.

A true 'my neighborhood' means a place where economic ownership is possible, beyond just residing. This perspective suggests that the sense of belonging or stability a tenant feels differs from that of an actual owner.

It is not advisable to forcefully enter a high-end area with a small apartment when prices have surged from 2 billion to 2.8 billion won in a year and a half. It is necessary to acknowledge responsibility for missing past purchasing opportunities and to accept market changes. Instead of forced entry, realistic alternatives should be sought.

Considering areas like Bundang as an alternative to Pangyo, where the price burden is relatively lower, is reasonable. The thought of 'just getting a foot in the door' may not be a good choice, and making the best decision for the current situation is important.

Even if there is one year left on the current jeonse contract, if it can be terminated, it is recommended to terminate it immediately and move. This means immediate action is needed to secure a primary residence. The move from Pangyo to Bundang triggers a domino effect, and prices have already risen across all areas.

Therefore, the best choice must be made within the current budget. It is important to make decisions without hesitation amidst rapid changes in the real estate market, and an aggressive housing relocation strategy is necessary.

The entry of cash-rich individuals into the real estate market becomes the justification and target for government regulations. Such a cascade of buying can increase the probability of additional regulations. The shockingly low number of jeonse listings in the neighborhood where these individuals reside indicates a severe property scarcity.

This emphasizes the need to expedite home purchase decisions. Property shortages increase price pressure, suggesting that missing an opportunity could mean paying a higher cost. It is crucial to utilize the optimal buying period through quick decision-making.