According to GG Auction, a website that provides information on court auctions, 12 successful bids out of a total of 39 auction cases this month were placed by corporate entities. (image: KobizMedia/ Korea Bizwire)
SEOUL, Oct. 19 (Korea Bizwire) — As a recent governmental measure aimed at curbing prices of real estate properties has made it more difficult for individuals to obtain loans to buy properties, there has been an increasing number of people who are placing successful bids for auctions of properties that are tendered under corporations.
According to GG Auction, a website that provides information on court auctions, 12 successful bids out of a total of 39 auction cases this month were placed by corporate entities.
Compared to the same period last month, this is a fourfold increase.
Experts say bids by corporate bodies are on the rise because businesses have easier access to financing than private individuals.
As the government measure that took effect on September 13 lowered the loan-to-value (LTV) ratio from 80 percent to 40 percent, investors have started to register as corporate bodies in order to have easier access to loans.
The LTV is the ratio of a loan to the value of an asset purchased.
H. S. Seo (hsseo@koreabizwire.com)
Thanks for sharing this informative post with us. It is good news for me because I am a professional estate liquidator and Increase in real estate auction bids help to increase the value of the estate.