Korean Job Discussion Forums

[Swampfox10mm]

We're looking into buying a villa. One idea (not set in stone) is to look on the Olive line around Costco/Sangbon (Sanbon?) station, or a few stops closer than that toward Chungdam, where she works. She needs a straight shot to work, or no more than 1 transfer, and wants to be at work in 30 mins or less including walking to the subway station. Nanny lives near Children's Grand Park, and I work near Hyewha. I would probably have to get a car again, if we lived in this area. Problem is, I think some of that area is not considered very good, correct? Or am I wrong? The Costco area looks kind of iffy.

Buying is not something we care to do, but we have more fears about the housing market taking a major dump in 2 years, and taking everyone's Jeonsae with it. Jeonsae scares the crap out of my wife and I for the near future. We've always been fine with it, but I smell doom on the horizon, given how far many Koreans are in debt to own.

We figure if we buy a villa in the right place, it won't kill us so much as buying a bloated apartment (which we couldn't afford, anyway), should things go bad.

Any suggestions on locations that would be convenient, and not a horrible area for raising a child? Anyone know anything about schools and such in these areas? Thanks.

[newb]

As long as you don't consider it a short term investment, best time to buy is when you need it.

[Otherside]

If you honestly believe the real-estate market is going to crash in the next few years..WHY ON EARTH WOULD YOU BE BUYING?



So, real estate crashes, at least you didn't lose your Jeonse, but now you have a Villa which is worth 20-40% less than what you paid 2 years ago. This sounds like the kind of advice...
Q: "How to make a small fortune?"
A: "Start with a big fortune"

Smart move:
1.Rent, for 2 years.
2. Go Wolsae...
3.Market crashes
4. buy a place at 20-40% less than current prices.
5 Profit.

[Swampfox10mm]

I don't see villas crashing that much. Apartments, yes.

We are here for the long haul.

[big_fella1]

Sorry I ddon't know Seoul, so I will stick to economics.

If you pay Wolsae in Seoul, I guess you're looking at about a million a month, so 24 million over 2 years.

If you think the villa you buy will fall less than 24 million in value you're good to go. If you think it will fall more, then wolsae would make more sense.

However if you're here for the long term and you can afford the mortgage on 1 salary without any extra work then a fall in the house value won't affect you much as you can still afford your home. Owning can make spiritual sense.

Do you realise that you will need about 50% of the value of villa as a deposit to get a mortgage? The good thing about this is the villa's value shouldn't fall more than your equity in it.

I like the idea of a ground floor villa with some sort of yard, but Koreans are very security conscious (read paranoid).

[Swampfox10mm]

We will be paying cash for ours, or mostly cash. We both work. We are being conservative.... looking in the 160 to 200k range.

Wolsye is a waste for us. If we did that, we would still be in fear of losing Wolsye in a crash, and would still be stuck paying monthly rental bills that would likely eclipse a realistic real estate contraction if we buy at our price level. Much like you said.

Jeonsae is getting ridiculous in that many places want as high as 80% of purchase price now. Been out looking today. The landscape is creepy. Quite frankly, it scares us.

It seems we are damned if we do and damned if we don't. If so, I at least hope to be in the position where our entire life savings is not tied-up in another Korean's investment when the roof falls in.

[Hoost]

gangnam-gu office station is nice... its where i currently jeonse a villa... one with a yard, private entrance, gate, etc.

200,000 would not get you anything in this neighborhood as far as buying.

Apartments at the station here are going for about 450 mill for a 3 small older 3 bedroom.

200,000 is more likely a jeonse for a smallish villa in this neighborhood... maybe more like a converted villa separated into units. Many celebrities actually live in this area especially in the back road villas.

If you want anymore information feel free to PM me.

[Norn Iron]

I lived for 2 years in the Sangbong area. 5 minutes from Costco. I was happy with the area, but my wife was very conscious that it was/is one of the least desirable locations in Gangbuk. I couldn't see why. Vast swathes of Seoul look very much the same to me.

If you're in for the long haul, I'd say buy. Who's to say house prices will crash? They're more likely to rise because that's what the rich and powerful want to see happen. That's how the big chaebol developers and big-scale landlords get richer.

However, these things are in the hands of various financiers and markets who can get nervous or bullish on an arbitrary basis. Don't ya just love the system our future security depends upon!!?

My wife and I are buying. We're here for the long haul and we want a place to live and don't want to pay Jeonsae anymore. Wolsae seems wasteful but good for short-termers.

[alongway]

[Swampfox10mm]

[Swampfox10mm]