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TITLE Living Support Plan Reflecting Residential Spending Characteristics By Life Cycle
Volume vol.603 DATE 2017-02-07 HIT 7545
FILE

파일첨부 brief 603.pdf

Living Support Plan Reflecting Residential Spending Characteristics By Life Cycle

Kim Mincheol, KRIHS Associate Research Fellow


Summary
□  There is a discrepancy between the time of income occurrence and that of residential consumption demand, and this type of trend is expected to gradually deepen.


□ Income volatility is expected to worsen due to sluggish economic growth and lower income and asset movement between generations, and population and social factors like the low birth rate and rise in single-person households will worsen.


□  Thirty-something households wishing to buy a home will most likely face asset restrictions when using home financing, and interest payments will prove to be a burden because of high rates.


□  Households that pay monthly rent instead of jeonse (lump-sum rent) have low probability of home ownership, and this trend will especially affect the elderly.


□  Households living in public rental homes, compared to those residing in private rental homes, are extremely limited in their ability to secure real estate assets and restricted in mobility of residential upgrades after their leases expire.



|Policy Direction|
① Supporting home purchases by households headed by 20-30 year olds can induce housing upgrades, conditions for the loan-to-value (LTV) ratio can be partially eased while strictly managing conditions of principal and interest payments to raise accessibility to finance, and assistance for the equity investment method using funds or financing to lower the burden of initial purchase loans must be considered.

② To help households living in public rental housing secure assets, a savings program featuring matching funds is recommended and should be connected to a selective rent-to-own option based on the program’s results.

③ Households headed by people age 60 or over should get the option of longer rental periods over financial assistance and cheap rental housing that provide medical services.