Korean Job Discussion Forums

[indramayu]

I'm thinking of buying a 5-story villa just south of Seoul in one of the growing satellite cities. This is the hypothetical picture if I decide to go for this property. Is it a good deal? Would you do this?

I'd pay around half of the property value while the other half is buried in the tenant's key money (who are pretty stable are expected to stay there for a few years). In effect, the key money acts as a mortgage. Because so much is buried in key money, the rent is quite low. I'm hoping to get new tenants or convince the existing tenants to lower the key money I owe them (i.e., pay them) and increase the rent. But it would take a number of years to raise the money to pay the key money. We'd live in one open unit and continue renting to the other 4.

What's the property market like in Seoul and the surrounding southern areas? What's the optimum key money level for this kind of property? Is the future so bright that you've got to wear shades?

Thanks. In

[bobbyhanlon]

if you're seriously considering buying this building, don't ask for advice about it on an online forum, especially one that has nothing to do with property investment!

[indramayu]

Where else would I ask for Korean investment advice? There is a lack of online networks or much English-language information about investing in Korean real estate. I'm looking for info wherever I can find it.

In

[itaewonguy]

location is key! if you buy a villa in an area which might be scheduled for construction of a new city! then you might get a good deal from the government. it all depends on your future prospects for buying the property
for retirement investment? or to flip the villa in a couple years for a premium, or just use for a rental income.
you have to look deep into all the taxes and maintenance fees which will come with owning this property so see if its good for a rental business or not.

if you just plan on flipping it for profit. again you will need to check to see how long you can legally own it before you flip it without being having to pay a large amount in tax. the longer you own it the less tax you pay..

what happens 5 years from now, is anyones guess.. people always need a place to sleep.. so renting it wont be a problem.. but its always possible the value goes down in 10 years. research the area you are in..
is a subway planned? is a new city planned, an emart near by.. parks what ever.. or is the area forgotten by the government..

what area are you considering?

[indramayu]

I'm thinking of buying property in the Anyang area. Apparently, the government has long-term plans to develop the area. It looks attractive but there's so much key money involved that the rental income looks low. It will take me years to pay off that key money (i.e., earn enough myself to pay back the key money to the tenants and charge higher rent).

My finanical goal: to own it and collect rent for maybe 10 or 20 years and then sell it. I hope not to have to retire in it.

In

[Todstar]

Most property investors expect a return, a yield on their investment that would at least match interest received on keeping their cash in the bank and if they also get capital appreciation then great. It seems to me that property speculation in korea has been built purely on expected capital appreciation due to high demand, I cant see where any yield is coming from with rents being low compared to property prices.
I agree with the comment above about information in this area being hard to find but as the rest of the world has found out prices cannot rise forever and prices have already started to turn here now as well. I was reading an article in the KH recently that quoted some analysis that Koreas house price decline was just starting and could run for many years, personsally I would not buy here at the moment.

[robot]

Which part of Anyang? And where/what did you hear about the government's plans?

As a planned city, Pyeongchon is already developed, but there are some outskirt areas closer to Indeogwon that are currently being built up. As well, the Anyang Station area down to Hogye looks like crap and I can foresee some reno work there.

We're planning on buying a villa as well. For our current one (3 units and a restaurant), the owner is asking US$1.2 million, but that's way too steep. I'm going to wait it out a bit more and see where prices are in the next two years.

[northway]

[blackjack]

[zappadelta]

[blackjack]

[northway]

Per Wikipedia:

[indramayu]

All that action around Anyang Stn and DongAn-Gu looks good but what about the Indoekwon area? All around Indeokwon subway station (Line 4) has grown an active nightlife and entertainment district. I'm hoping that means property values will continue to increase. Across the street from Indeokwon station exit 2 is an area that looks like a series of flower shops and other old shops that need developing. I wonder what is going to happen down there. I've heard the government has plans (perhaps like around Anyang Subway Station)?

[youtuber]

I think you should save your money for buying property in a western country where your rights are solidified.

You have so much going against you for property ownership in Korea....language, exchange rates, racism, taxes, poorly enforced laws, overpricing due to rampant speculation, ect ect

[Louis VI]

Invest $500,000 in property on Jeju Island and get permanent residency. It's a move by the special self-governing province to increase foreign investments, primarily housing by the Chinese.

Personally, if I were to stick around I'd consider some of the cheap options on the south coast of the peninsula. Apartments rent in the 100,000-300,000 won range (with 1 mill-5mill down) so I can't imagine it's that expensive to buy. I know a Korean guy who bought a new apartment in Jinju for less than I've made in eight years teaching here. It gets you thinking...