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UKsimon
Joined: 01 Nov 2009
Location: Incheon
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 Posted: Mon Feb 21, 2011 9:36 pm Post subject: Anybody know how much their flat is worth? |
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I've always wondered the market value of my flat.
I've been told a nice 3 bedroom flat in Incheon costs 200,000,000 won, but that was only a co-teachers guess.
She did reply with a funny quote 'How would I know the price of a flat? I'm not a housewife' |
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nick70100
Joined: 09 Sep 2005
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| Posted: Mon Feb 21, 2011 9:49 pm Post subject: |
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If you can read a bit of Korean http://land.naver.com is a good place to look to get a general idea.
I live in a 2 bedroom apartment in Gwangmyeong. Built in 1986 (ancient by Korean standards) and not very nice. Similar units in the same complex are selling in the 240,000,000-270,000,000 range. |
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Drew345
Joined: 24 May 2005
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| Posted: Mon Feb 21, 2011 11:11 pm Post subject: |
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| When I was looking to buy a few years ago, I was talking to a friend helping me about determining the value of apartments. He said its easy, just look for the asking price of apartments in the area. I pointed out that in America we judge the value based on actual recent sales in the area (called "comperables"). It seems to be a radical new idea, judging value based on actual performance. |
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Yaya
Joined: 25 Feb 2003
Location: Seoul
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| Posted: Mon Feb 21, 2011 11:17 pm Post subject: |
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| Drew345 wrote: |
| When I was looking to buy a few years ago, I was talking to a friend helping me about determining the value of apartments. He said its easy, just look for the asking price of apartments in the area. I pointed out that in America we judge the value based on actual recent sales in the area (called "comperables"). It seems to be a radical new idea, judging value based on actual performance. |
I briefly did real estate appraisal in Southern California and yes, comparables are not used in Korea. Still, I would ask to see proof of the last SALE in the immediate area before deciding to buy but then again, the days of crazy real estate appreciation in Korea are over. |
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Capo
Joined: 09 Sep 2007
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| Posted: Mon Feb 21, 2011 11:51 pm Post subject: |
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| can u even buy a flat? don't u have to own the building? in any case jonsei is anywhere is from 25 to 80 % of the value so it doesn't make sense to own necessarily. As said crazy price inflation is over, prices are falling but rents are rising. I can only see it being worth it u can afford a 3 story villa and collect rent of the other stories and hope some construction company wants to come and buy the land later to build apartments and u'll get a nice pay out. |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Tue Feb 22, 2011 12:07 am Post subject: |
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| 1,000,000,000 won apparantly. Nothing special but it's on the Han river and a construction company wants to buy it. |
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nzbradly78
Joined: 23 Mar 2009
Location: Czech Republic
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| Posted: Tue Feb 22, 2011 12:38 am Post subject: |
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| Mine's not worth the pile the drunks leave at the bottom of the staircase on Sunday morning. Leaky, bad plumbing and stripped screw holes. We haven't moved because we signed a two year lease which we were told was only a one year. Oops. |
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Lazio
Joined: 15 Dec 2010
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| Posted: Tue Feb 22, 2011 3:51 am Post subject: |
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| Quote: |
| We haven't moved because we signed a two year lease which we were told was only a one year. Oops. |
You can break that contract any time. All you need is to pay the realtor's fee for finding a new tenant. It shouldn't be more than 300,000 won or even less if it's a really crappy place (low market value) |
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Ice Tea
Joined: 23 Nov 2008
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| Posted: Tue Feb 22, 2011 4:21 am Post subject: |
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| I recently surprised to learn the value of my officetel, just 100 grand. Wow, and the rent is 570,000 a month. So whoever I'm renting from is earning 14.6% a year off their investment. That's pretty damn good. You can't get returns like that on most other investments. Seems to me the market is leaning towards buying and not renting. |
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Poker
Joined: 16 Jan 2010
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| Posted: Tue Feb 22, 2011 5:39 am Post subject: |
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| Ice Tea wrote: |
| I recently surprised to learn the value of my officetel, just 100 grand. Wow, and the rent is 570,000 a month. So whoever I'm renting from is earning 14.6% a year off their investment. That's pretty damn good. You can't get returns like that on most other investments. Seems to me the market is leaning towards buying and not renting. |
I'm no mathematician. Was the officetel 100 000USD? Please show me how you worked out 14.6%. Thanks |
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movybuf
Joined: 01 Jan 2007
Location: Mokdong
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| Posted: Tue Feb 22, 2011 5:59 am Post subject: |
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| Capo wrote: |
| can u even buy a flat? don't u have to own the building? in any case jonsei is anywhere is from 25 to 80 % of the value so it doesn't make sense to own necessarily. As said crazy price inflation is over, prices are falling but rents are rising. I can only see it being worth it u can afford a 3 story villa and collect rent of the other stories and hope some construction company wants to come and buy the land later to build apartments and u'll get a nice pay out. |
Of course you can buy a flat. It's called 매매 in Korean.
I dont know where anybody sees apartment or villa prices falling!? From what I can tell, buying an apartment/villa has risen slightly, but doing a 전세 lease has risen a lot, at least in Seoul. Just a quick look at the Daum 부동산 page will show you the prices mapped out on a nice little graph. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Tue Feb 22, 2011 8:59 am Post subject: |
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| Capo wrote: |
| can u even buy a flat? don't u have to own the building? in any case jonsei is anywhere is from 25 to 80 % of the value so it doesn't make sense to own necessarily. As said crazy price inflation is over, prices are falling but rents are rising. I can only see it being worth it u can afford a 3 story villa and collect rent of the other stories and hope some construction company wants to come and buy the land later to build apartments and u'll get a nice pay out. |
Nearly all of the units in Korea are actually condominiums. There are very few actual rental apartments or flats available outside of private homes with a few extra rental apartments attached. Most E2 teachers are living in condos rented from some private investor. Due to restrictive tax rules, the returns possible decline quickly on anyone who owns more than 3 units. As a result there is a scarcity of housing - both rentals and for purchase - and prices are artificially inflated.
People who buy condos here do look at comparables all the time before they buy. However, the banks use an appraisal system that is more conservative and restrictive than comparables when they set the maximum loan levels for each building/unit. Owner occupied units require somewhere around 40% down on a value that is generally lower than recent sales. Units bought that are not owner occupied, but used for rental, appreciation or some other purpose require higher down payments which I've heard are around 60%. |
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nzbradly78
Joined: 23 Mar 2009
Location: Czech Republic
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| Posted: Tue Feb 22, 2011 2:48 pm Post subject: |
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| Lazio wrote: |
| Quote: |
| We haven't moved because we signed a two year lease which we were told was only a one year. Oops. |
You can break that contract any time. All you need is to pay the realtor's fee for finding a new tenant. It shouldn't be more than 300,000 won or even less if it's a really crappy place (low market value) |
If we had only known that earlier, dang it! But its not worth it now. I got a job in Europe starting this summer so its not really worth the hassel for four months. I'll let my friend who's in a similar situation know about this though. Thanks! |
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War Eagle
Joined: 15 Feb 2009
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| Posted: Tue Feb 22, 2011 5:14 pm Post subject: |
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| 180,000,000 won. It's a 20 pyeong loft. |
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Ice Tea
Joined: 23 Nov 2008
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| Posted: Tue Feb 22, 2011 5:37 pm Post subject: |
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| Poker wrote: |
| Ice Tea wrote: |
| I recently surprised to learn the value of my officetel, just 100 grand. Wow, and the rent is 570,000 a month. So whoever I'm renting from is earning 14.6% a year off their investment. That's pretty damn good. You can't get returns like that on most other investments. Seems to me the market is leaning towards buying and not renting. |
I'm no mathematician. Was the officetel 100 000USD? Please show me how you worked out 14.6%. Thanks |
I divided the wrong number. So it's actually 6.8% annual return. Still pretty good though. |
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