The Hidden Secret of Hassan's Milestone Real Estate Value Rise
In historical dramas, there is a scene where a disciple does all kinds of odd jobs and miscellaneous tasks under his master, and then one day he receives the master's know-how. When the master tells the disciple, "You should get off now," the disciple responds, "I have more to learn, so I will stay." This line appears similarly in every drama. Perhaps that is why we perceive the word "get off" to mean that after doing odd jobs and miscellaneous tasks to achieve our goal, there is nothing more to learn. However, the true meaning of the word "get off" is that you have done well so far, so it is time to move on to the next step.
Real estate investment is no exception. Hidden master's strategy that surpasses the teacher.
Acquiring a large asset like real estate is fraught with many difficulties. Perhaps because of this, there is a tendency to hold onto it until the end without a clear plan for selling, like a disciple who refuses to get off the mountain after receiving his master’s know-how. Up until now, real estate success stories have focused mainly on the acquisition process, and asset owners with short-term exit strategies were considered so-called building traders. As a result, the exit strategy itself was perceived as an unethical act. However, in reality, real estate with an exit strategy is often traded at a 20-30% higher price. In the end, the secret to “maximizing asset value” is to operate it as if you will sell it at any time, even if you have no immediate plans to sell it.
Are you a “giver” or a “taker”? What is your true identity?
A giver is someone who gives sincerely, and a taker is someone who puts their own interests first. Sometimes, even people with a soft heart can appear to be takers on the outside. For example, there are wealthy people who say, “I have not raised the rent for more than 10 years for the sake of my tenants.” In reality, these people are likely takers. The reason they did not raise the rent may be because they are soft-hearted, but they may also have an ulterior motive of not complaining about management negligence. This practice is detrimental to not only the tenants, but also the wealthy people themselves, and even the local community. A true giver does not just not raise the rent for 10 years, but receives a market-rate rent and invests some of the profits to increase the tenants’ sales. Only then can coexist.
Real Estate Without a Hassan Strategy: The Reality of Inheritance in a Rapidly Aging City
According to the National Tax Service's inheritance tax report status as of June 30, 2024, the deceased's 50% or higher is over 80 years old. Most elderly owners are reluctant to build or remodel for fear of shortening their lifespan, and often leave the management to tenants, so the assets are often in an old state. Most children who inherit assets from these deceased are in their 50s or 60s. Inherited assets also have low rental yields and many things to maintain, so they can only be sold at a low price when sold, and if they are not sold, the management method does not change much because they share memories of their parents with the existing residents.
On the other hand, investors with a clear exit strategy manage their assets from the perspective of a buyer and focus on increasing the value of the building. This is an important factor in creating more favorable conditions for sale and ultimately realizing higher returns.
Lee Myung-hee | Director of Remax Wide Partners, Meta Team Leader
– Certified broker, fund investment consultant, Holds CRS (Chief Real Estate Specialist Course) certification
– 2024 Meta Team Performance: Ankuk Pharmaceuticals building sale, Korea Credit Information building purchase, Korea Quality Foundation building purchase, FMTEC office relocation, Handong Tower lease, small building sale, etc.
– Recruiting Meta Team members
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