Korean Job Discussion Forums

Kiddirts · Joined: 25 Jul 2003

Ok, so I'm approaching month 16 in Korea. I make over 6.0 sometimes close to 7 and have been able to bank over 5.0 a month, easy. ( I do work long hours, I have no jobs over 50k...do the math) Here's the thing, I was doing some math of my own the other day, and while I have most money in a bank account and some in a CD, I figured why not put down 30-50mil on a nice apartment and rent it out and collect the 800k or 1mil a month I could get off that...and then with my combined income added to that income, I could get another apartment within a few months, do the same, until this snowballs where I could get an apartment every 3 to 4 months until I have 10 apartments paying me monthly rent with my money down and make 8 to 10 mil a month just collecting rent. I would quit teaching, hire someone at 2 mil a month to manage my apartments and go live like a king off my income in Thailand or somewhere. With the math laid out, all this is conceivable within the next 5 years. Here are the problems I'd have to get over, what do you think: I'd have to rent out to fellow english teachers, hoping that none of my apartments are vacant...english teachers come and go. But here's the big one...I'm big on privates, so what happens if I'm caught doing the part-time gigs with my E-2...will the gov't repossess the giant sum of money I'd have thrown down on the apts? With this whole real estate thing, I'd be making 20% on my money and adding to my "business". Again, what's the risk?

waterbaby · Joined: 01 Feb 2003 Location: Baking Gord a Cheescake pie

um - where are you going to get an apartment for 30~50 mill?

Son Deureo! · Joined: 30 Apr 2003

I think you just figured out the main risk right there, getting thrown out of Korea with a mint invested in Korean key money.

Another problem is that you will have to declare your key money deposits to your local dong office if you want to protect your investment. If you don't register your deposits, you stand a fair risk of not getting them back when you pull out of your apartment. By registering, you are raising the risk that the government will wonder why a "teacher" or "tourist" is putting so much money into renting apartments in Korea.

I think you're smart to want to invest the money that you're making here, but considering the volatility of your situation, living and working in Korea illegally, you might want to consider finding someplace else to invest your money. If you're smart, outside of Korea.

peemil · Joined: 09 Feb 2003 Location: Koowoompa

Yep... Outside Korea...

bucheon bum · Joined: 16 Jan 2003

why invest in Korea? Because you'd be able to be close to your real estate investments? Why not something else like stocks?

Gord · Joined: 25 Feb 2003

SuperFly · Joined: 09 Jul 2003 Location: In the doghouse

http://www.rfidjournal.com/article/articleview/1117/1/1/

RFID technology is the wave of the future...invest now...

riverboy · Joined: 03 Jun 2003 Location: Incheon

Gord is right. It sounds good in theory, but it is not as simple as that. My wife and I are doing the same thing but we only plan on buying the first property for now and that is because it is a, 80 milloion won villa for 50 million. She is in real estate and can work around those things. Whynot use your money in your own country and do the same thing?

kiwiboy_nz_99 · Joined: 05 Jul 2003 Location: ...Enlightenment...

Soon I'll be starting to buy houses for renting, but in New Zealand, definitely not here.

riverboy · Joined: 03 Jun 2003 Location: Incheon

Yeah Kiwi boy! New Zealand is the place for realestate right now!
Too bad I'm Canadian.

itaewonguy · Joined: 25 Mar 2003

if you get caught doing privates and you have money in the bank here and invested. you can kiss it goodbye!
you will be deported.. so once you are at immigration,.., keep our mouth shut!!
they will probably give you 8days exit order. so in that time you collect all your money and leave..
doing business in korea without a korean sponser is going to be very very difficult for you.. even buying the house you are going to need a D8 visa

why not do what others have suggested.. use that 30million - 50 million and buy 3 or 4 hours back home.. morgage them.. have people paying the rent.. at less over time you will own time right out and be ready for your retirement...
also you cant buy a house right out for 50 million in korea!!!
NO HOUSE!!!!
not even a roof top villa!!!
50 million in korea will buy you nothing!!

if you want to morgage in korea how are you gonna legally prove to the bank manager that you earn over 5 million.. when your contract says..
2.2 or what ever..?
also I doubt you have been earning 5.0 - 6.0 everymonth for 16 months..
its up and down.. so.. no bank EVER will grant you a loan..
especially a TEACHER!! who is on a E2 and not married..

so my advice.. forget korea!
unless you want to move into the business sector.. then thats another topic isnt it..

Gord · Joined: 25 Feb 2003

Cedar · Posted: Mon Nov 08, 2004 11:07 pm Post subject:

Shoon · Joined: 02 Nov 2004 Location: Gwangju

I'm just thinking out loud here, but wouldn't a question like that be better answered by an accountant or investment broker?

If you're really serious, you should talk to the people who really know what they're doing, not a group of people who have theories.

nrvs · Joined: 30 Jun 2004 Location: standing upright on a curve

First, do you have an emergency stash of cash? 6-8 months of living expenses in a liquid account? Not 6-8 months in Thailand, but 6-8 months at home. You need to have this money set aside if something bad happens (i.e. you get deported) and you have to set yourself up somewhere else. Put this in an ING Direct account and you'll get 2.2% on the balance with full liquidity.

Your next priority should be investing for retirement. I can only offer my perspective as an American, but I'm betting Social Security won't exist when I reach retirement age (2045). So, I'm doing it myself. I've never had the luxury of an employer-matched retirement plan at home, and I certainly don't have one now in Korea.

Since I graduated in 2002 I've been contributing to a Roth IRA that I hold at Vanguard. I made the maximum contribution in 2003, and I'll do the same in 2004. Vanguard is arguably the best mutual fund company around in terms of variety of funds and low expense ratios. If you're American: Do yourself a favor and sock at least $3000 away now, and another $3000 in $250 increments through 2005. Vanguard's "Target Retirement" series of balanced funds are excellent. I own VTIVX.

The next step is paying down your debts at home. The highest interest rates get paid off first -- credit cards, "instant loans," and so on. It's a guaranteed return on your investment! Do you have student loans? It's up to you with those. My interest rate and monthly payments are so low that I forget mine's even being paid from my savings account at home.

Finally, as other posters have suggested, real estate is one of the best long-term investments you can make. It's second only to full-time employment as a hedge against inflation, and the tax benefits are great. However, unless you're able to do it legally here with the appropriate visa and tax payments, I think it's best to do it at home.