[복덕방기자들]Gangnam rich people, why invest in 000 instead of apartment

[이데일리 황현규 기자] “The rich make money-saving investments. One of them is “the land”.”

On the 26th, CEO Kim In-man of the Real Estate Economic Research Institute appeared on E-Daily Ministry of Construction and Real Estate’s YouTube’Bokdeokbang Reporters’ to teach the real estate investment methods of the rich in cash. Representative Kim explained that the interest of property owners in real estate has shifted from apartments to land. Representative Kim is a housing, building, and land expert who has been consulting real estate for over 10 years.

He said, “The interests of the rich are high in land shares that are free from regulations on acquisition tax, transfer tax, and loan.” It is a strategy of investing in shopping malls and detached houses where buildings have already been built, rather than pure lands with high barriers to entry such as land and forest.

First, he explained that the interest of property owners in detached houses has recently increased. He said, “In the case of a single house, the location where the child building can be built in the future is sold as soon as the sale is released.”

In the case of shopping malls, CEO Kim analyzed that the average expected return is around 3.5%. “In the era of inflation, wealthy people are afraid of having cash,” he said. “Many times they are satisfied with just higher than the 1.5% interest on bank deposits.” He added, “There is also an advantage in that the mall can enjoy market profits through remodeling and land price hikes in the future.”

However, CEO Kim says it is risky to invest in shopping districts other than Seoul. “The biggest advantage of Seoul is’scarcity’,” he said. “The land in local and Gyeonggi provinces is not only larger in size than Seoul, and there are alternatives, so it cannot be regarded as a safe real estate investment asset.”

Meanwhile, CEO Kim predicted that although interest in the apartment market was slowing down than before, the rise of mid- to low-priced apartments would still continue. CEO Kim said, “There is still not a lot of waiting demand to buy a house, and it is likely that the height of apartments under 900 million that newlyweds can access will continue,” and “there is a 70% chance that the house price will rise.”