If you ask whether there are correct answers and principles for real estate investment, you can say that there are no correct answers.

However, there are clear principles and degrees. For example, let's look back at the IMF era. The real estate market was crashing every day, and there were quick sales piled up on the market one by one, and everyone lost their sense of direction and didn't know what to do.

However, there were quite a few people who saw this period as a good time to invest and jumped into the real estate market. Foreign companies that bought prime real estate in Korea or wealthy people with money ended up buying real estate at a low price and accumulating more wealth.

Real estate prices have a habit of rising sharply from the moment people think that this is the bottom. When the time comes for prices to rebound, properties that were on the market are immediately sold, so even if you try to buy, the asking price just keeps rising, and you end up missing the timing.

People say that now is a crisis, but if you think about it, now may be the right time. Many people overlook the fact that the way to become rich is surprisingly simple.

When investing in real estate, you can succeed by simply knowing the so-called '6 W' principles of real estate investment and following them. This is because there is no right answer to investing, but there are degrees.

In fact, people who are new to real estate investment often feel afraid or hesitant because they do not know how to start. Also, even those who have experience in real estate investment often lose their direction in a real estate recession or dynamic market. The blind investment method is no longer applicable. For stable and successful investment, the '6-Ha principle' can be a useful compass.

First, why: When investing in real estate, the most important thing to consider is the investment purpose. You need to distinguish between whether it is for residential purposes, rental purposes, investment for retirement, or investment for children. You need to be clear about your investment purpose in order to set the right investment direction. 

Second, what: Once the investment objective has been determined, the next step is to decide which property to choose.

You need to decide on the purpose of your investment and specifically select the real estate you need. First, you need to decide which type of property you want to invest in, such as land, apartments, or commercial buildings, and then you need to narrow down your options by considering the specific location and characteristics of the type.

You need to specifically review what kind of real estate you are choosing, such as whether it is a representative apartment in a popular area, a redeveloped apartment with a large land area, an officetel for rental purposes in an area with a high concentration of business facilities, a commercial building in an area with a high floating population, farmland with development potential due to the possibility of agricultural land conversion permits under the Farmland Act, or a country house or pension with easy road access.

Third, how: Real estate investment requires a lot of money, and the invested money is fixed for a considerable period of time, so there is a big difference in investment performance depending on how the money is managed. In particular, how the investment money is raised has a great impact on the feasibility of the investment, investment returns, etc.

First, you need to specifically estimate how much money you need to invest in real estate. You need to check your own funds and set a budget. Next, you need to determine the size of your investable funds and the level of leverage you can use. This will allow you to reasonably approach the target area and target product.

Fourth, when (when: purchase period, investment period): Real estate investment is all about timing. When to buy and when to sell is very important. Since real estate prices change frequently, even for the same real estate, the rate of return can differ greatly depending on the purchase and sale periods.

The decision on when to buy or sell should be made by considering the real estate market trends and real estate conditions. Like other products, you can make a lot of profit by buying real estate when it is low and selling it when it is high. 

And when investing in real estate, you need to decide on the investment period. In other words, you need to decide how you will invest among short-term (1~2 years), medium-term (3~5 years), and long-term (6~10 years). Once the investment period is decided, you need to choose a real estate product that fits that period. For short-term investments, liquidity should be considered first, and for long-term investments, products that are expected to have high investment returns are good. 

Fifth, where (where: selection of region): It is never easy to find real estate that fits your investment conditions or investment purpose. The most important criterion to consider when selecting an investment region is the development potential of the region. This is because real estate investment is not about living in the present, but living in the future.

Areas where future development is planned, areas in a growth phase, areas where population inflow is expected, areas with good natural environments, etc. are factors that increase future investment value. However, you should make a comprehensive judgment, and if you rashly choose only one, you can easily suffer a loss.

For example, when deciding on a region, you should first select about 10 candidate sites, then narrow it down to two or three, conduct intensive analysis, and then make a final selection. It is also a good idea to select a region that you are familiar with or can identify. 

Sixth, who (who: sole investment or joint investment): Lastly, you need to consider whether you will invest alone or jointly, and if jointly, with whom and through what method.

Rather than missing out on good products due to lack of funds or struggling with the interest burden of excessive loans, pooling funds and investing can reduce risk and increase returns.

For example, land with a large market price difference often requires purchase of more than 1,000 pyeong, and it is advantageous in terms of management and profit to form a complex for country houses and pensions. In such cases, if the financial situation is not good, it is necessary to actively seek joint investment. However, joint investment also carries many risks, so caution is necessary. 

Original link: http://www.newsway.co.kr/view.php?tp=1&ud=2015020308383446795