When I consult about real estate auctions, I get asked a lot of similar questions. Since auctions seem vaguely difficult and complicated, it is inevitable that there are many concerns and questions. Among them, I have organized three questions that are particularly frequently asked.
Q. Where should I start looking on an auction site?
To be honest, I want to answer, “You have to see everything!” but that’s too harsh for a beginner. When you first get into auctions, most people use free or paid auction sites. Beginners often start with free sites like Naver Auction. However, you can get information much more conveniently by using paid sites.
Where should you look first on the site? The best way is to look at the areas you know well. Even if you look at auction items in a neighborhood you are completely unfamiliar with, you cannot know what the characteristics of that area are or what kind of good news there will be in the future.
It is a good idea to start by looking at items in familiar areas, such as 'where I used to live', 'where I currently live', and 'neighborhoods I frequent'. In fact, if an auction item is listed in the apartment complex where you live, the consultation can be much easier. It is also recommended to look at items with a high number of views. There is a reason why there are a lot of views. For example, the price is low compared to the surrounding market price, the item is in an area with high investment value, or the item itself is interesting. It is a good idea to start with 'curiosity' in auctions. This is because you can study and approach consistently only if you are interested.
Q. How much capital do I need?
The question of capital is really difficult. However, auctions can start with small amounts. Real estate auctions are possible with 5 million won or 10 million won. Of course, the amount of capital required varies depending on the item, so it is a good idea to prepare additional specific explanations through actual cases or items currently being auctioned.
Q. Which area should I buy?
The answer to this question is always similar: “How about a place with good access to work and, if you have children, a good school district?” This is because many people consider auctions for the purpose of living there.
If you are considering both actual residence and investment, it is not easy to make a recommendation. It would be good to recommend popular areas such as Gangnam 3-gu, Yongsan-gu, and Seongdong-gu, but in most cases, there is not enough capital. If you are considering an auction for actual residence, it is important to prioritize the value of life over the value of investment.
Let's approach it based on the standard of 'a house where I will live for more than 10 years'. If it is close to work and a good environment for raising children, it is valuable enough in itself. Even if the house price falls, the happiness of living in that house will be more than offset by the opportunity cost. There is something I always tell people who are starting to do real estate auctions. Auctions should be a challenge with interest, and if you are actually living there, you should prioritize the value of life over investment value. I hope that the readers of this article will also seize a good opportunity through auctions.
I hope this article will serve as a practical guide for those who are starting out in auctions and help them make better investment decisions. I will continue to provide useful information and practical advice on auctions.
