“What is a house for me?” “Interview House” started with this question.
A product with investment value, a space where I live. In the meantime, I would like to tell you an honest story about a house that you may be wandering about. Buying an apartment that is worth climbing is not a bad thing. It wouldn’t be a sin to make money with it. But it won’t be the absolute good that everyone should pursue.
I am not trying to give an answer through an article. I have no intention of judging who is right or wrong. The purpose is to listen to and share stories about the space each person wants through interviews with various people.
I hope this will be an opportunity for people reading this to think about the house I want. Interviews try to meet and hear as many different people as possible from age, profession, education, region, etc. If you would like to share your opinion or recommend someone around me, please contact us by email. I will visit you in person.
Writer Kim Yan, who recently published a book titled “From Today”, runs a share house in Bucheon, Gyeonggi Province. Monthly income from there is 900,000 won. It is generating about 10% of the annual return on investment.
He said he couldn’t understand why people hang only in Seoul apartments. Rather than regretting not being able to buy an apartment that was so expensive that it could not be overlooked, he thinks that there are plenty of opportunities to find another investment. His goal is to become a landlord who makes steady profits from space. Kim said, “The real estate yield is usually around 5% per year. Renting a share house, etc. is possible at around 10% per year.”
◆ 900,000 won monthly income as a share house
The artist Kim, who met on the 8th, introduced himself as’a person who has gained money’. His life (?) began in July 2019 when he was refused a loan at a bank. In 2018, he was living in a friend’s house as a private tenant. With the consideration of a friend, I ran Airbnb in a private house. The income was fine. The relationship with the users was also good. After the period of the charter contract was over, several people who had been living for a long time said they wanted to continue living with Kim. He decided to buy a villa and start a full-fledged share house business.
The reality wasn’t easy. There was no bank that would lend him money to him with an annual income of 4.8 million won. “I was shocked that I couldn’t even get an opportunity without money,” Kim recalled. “It was the time when I awakened that I had to study money.” After that, he started building various pipelines that could generate income. I started working part-time 4 days a week and at the same time promoted writing and rental business. As a result, it currently earns more than 4.8 million won per month.
He has been using his house as a means of making money, unlike the people introduced in his interviews. However, the goal is to earn monthly income rather than market gains. Artist Kim purchased a 13-year-old villa with 3 bedrooms and 2 bathrooms in the first half of 100 million in 2019. I received only 40% of the money purchased from the bank, so 30% was barely raised with the help of seed money that my mother had hardly collected. There are currently three tenants living here. They are women in their late 20s to early 30s. The monthly rent is 300,000 won including the management fee and there is no deposit. It means that you can live more comfortably and safely than living in Gosiwon or a studio. Two of the three living together now are people who have been together since the previous house. One has lived together since October 2019, when this share house started. He said, “There are still many people who want to come in, but the room is not available,” he said. “The goal is to open another share house next year.” He explained that it is worth paying more taxes when it becomes a second house, but it is not likely to be more than earning.
Artist Kim prepares a small space in the living room of this house and lives there. He said there were no major inconveniences. If you want to be alone, you can go to an officetel near the house you use as a private office. Rather, it was fun to stay with people at home. He explained, “I am making interest on the house, principal, administrative expenses, and pocket money in this house,” he said. “It’s thanks to them, so I’m always grateful.”
◆Residential building owner price target
He went to see the house for over six months to buy a villa. “I went to the real estate as if I was going to a coffee shop,” he recalled. Instead of eating and drinking, he went to the real estate and sat down to talk and gather information. As a result, it was possible to buy an inexpensive villa 3 minutes away from Bucheon Station in Incheon by quick sale. “It was a remodeled villa, so it didn’t cost any repairs,” he said. “I sold my feet as much as possible to find the best house out of my money.” As a result, some market margins have also been raised. The villa price has risen by 20% from the purchase price.
When I asked the house I would like to buy in the future, a concrete answer came out that it was a commercial house building in Gwanggyo, Suwon. It explains that they want to have real estate that can generate rental income. “Gwanggyo New Town is close to Seoul and Pangyo, so many young office workers live and it is clean, moderately crowded and quiet. I want to raise rental income with a share house by giving a shopping mall on the first floor and using the second and third floors as residential spaces.”
He said that the house he wants to live in can be different depending on the purpose at that time. He said that it is not too downtown now, but a new city that is reasonably close to Seoul is good. The most important things to consider when choosing a house are safety, view, and proper distance from Seoul. He said, “I think it would be good if the view was moderate enough to see trees,” he said. “It seems that the new city in the metropolitan area is not too central or the countryside,” he said. There is also no romance for a spacious house. Kim said, “It’s difficult to clean, it costs a lot of maintenance, and I don’t want it in particular.”
The components I want to have in my home are a beam project, a nice chair, and a wide table. “I want to live with friends, watching movies, sitting at a table, writing good writing, inviting people to eat delicious food and interacting with them.”
◆Do not stick to the apartment and find a new way
For him, home is a way to make money and a space to meet people and develop creative ideas. “When I try Airbnb, not only tourists come, but people of various nationalities and cultures come,” said Kim. “I thought that a house is not just a place to rest, but a place where creative thoughts and people gather.”
Now, I am developing this thought into action. Recently, a meeting called’Money & Art Online Salon’ was established. The money team consists of ordinary people and the art team consists of artists. It is a group of people of the same age and with similar concerns to study’money’. “I want to make something interesting by mixing money and art,” he said. “The goal is to make young talented people who only think of apartments along the Han River and Gangnam in Seoul interested in Bucheon.” Recently, the Money & Art music team made stock songs. He said, “I will make it as a sound source and sell it to a securities company as advertising music.”
He advised peers who insist only on Seoul Han River View apartments that if they put down a little, they could own their own house much faster and gain stability. “In 1 year, I got a villa and a workroom officetel, and the stress on the work space was gone, and now I’m planning a new business. If I think a little differently, I want to know that there are new opportunities.”
Reporter Kang Young-yeon [email protected]