“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 if you would like to recommend someone around me, please contact us by email. I will visit you in person.
Choi Jun-cheol, CEO of VIP Asset Management, was a’stock man’ to the very heart. I have no intention of making money at home. I don’t think a home is a suitable asset to make money. This is because real estate is a market that has not changed much except during the recent surge.
I admitted the importance of arranging a house for myself. It is not for investment value, but for a stable life. That’s why investment guru like Warren Buffett and Peter Lynch asked to buy a house. CEO Choi said, “Without a single house is like taking a short position (betting on the decline in the market),” he said. “The stability that can be obtained when there is a house where you can not go out even if someone asks you to go out is also important.”
◆Set your own standards for your home
CEO Choi, who met at the VIP Asset Management office on the 26th, said, “I see a house as a concept of value in use, not asset value.” He bought a house in 2014. This is a time when the real estate market has been sideways since the 2008 financial crisis. The reason I bought a house is because I don’t want to pay attention to it. This is because I feel that I am a waste of time to pay attention to things other than stocks. In order to focus on stocks, I simplify my whole life and buy several of the same clothes and wear them back.
“Warren Buffett bought a house in the 1960s and continued to live, and Peter Lynch said that he should buy a house. This should be viewed in an uneconomic sense to focus on work, not economically.”
The experience of suffering from tenants also worked. “Once I had to move my house in a hurry, but there are no rentals for rent, there are bandits on the monthly rent. When I thought about the stability and social significance of the house, I thought I should have one.”
Before buying a house, he had a serious discussion with Co-CEO Kim Min-guk. It was 2007, when President Kim had just married. When they were both single, they stayed and worked in a small officetel, but they decided that they couldn’t continue to live that way after they had a family.
Real estate has been a challenge for the two professionals who have only lived in stocks. It wasn’t easy from valuation evaluation. The two people who are value investors thought they had to buy a house cheaply. It was a big problem that it was difficult to judge that it was cheap. “1 billion won is expensive and 500 million won is not cheap. It was difficult to evaluate the value because it differs from house to house.”
So, CEO Choi set two standards for the house. First, it is the principle of buying a house at a time that is favorable to the buyer. CEO Choi explained, “The government recommends buying a house, or you can choose the floor or lake you want. When the power of both sides of the negotiation is favorable to buyers, we have established the principle of buying a house.”
Second, if the price drops after buying a house, I decided to use it as an opportunity to move to a large pyeong. He said, “If the price of the apartment rises, it is good, and if it falls, other houses will fall, so I thought I should increase the number of floor spaces by adding money.”
◆It’s not easy to make money at home
Even from the standpoint of not confronting the real estate market, he said he needed a house. “It seems that the sense of distance between one house and one house is greater than the sense of distance between one house and two houses,” he explained. He said that if the price rises significantly in a situation where there is no home, it is difficult to catch up and peace of mind may decrease. “If you have one, you can cope with rising and falling within it, so it’s better than that.”
However, he said that he had no idea of making money at home, and he has not even now. “What will a stock-taker do if he makes money at home. It’s impossible to talk about letting go of boasting.”
He said it would not be easy to make money at home. “Because of the recent steep rise in prices, housing is an asset with a gradual increase in price. An asset that cannot be valuation measured has to be gained in the long term, but there is no significant volatility except for a certain section.”
Representatives Kim and Choi purchased houses in 2008 and 2014, respectively. As everyone remembers, 2008 was just after the sharp decline in real estate prices after the global financial crisis. “After Kim bought the house, the price of the house had dropped slightly until 2014. You could say that both were bought from the floor, but it was hardly rising until 2017. The price of a residential complex that has already been prepared is not moving enough to change life.”
He said he needed a house, but he disagrees with living as a’spirit’. He emphasized, “When buying a house, the proportion of the house in the whole property did not become 10%,” he said. “Before worrying about the soul, you must set your own standards for the house.”
◆Access and convenience are more important than school districts
The most important thing I thought of when buying a house was that I want to live on a flat land. CEO Choi said, “I always lived on the top of a mountain in my hometown, Busan,” and said, “I don’t think I want to live in a place on the hill, maybe because I was tired at that time.”
Another was that I wanted to live in a city with convenient transportation. “I wanted to reduce the time to throw away on the road and live wherever I can reach within 30 minutes.” The rest said they followed the wife’s will. He said, “The eyes of the people who have been in the house for the longest are the most accurate,” he said. “Even the convenience, etc., should be evaluated based on the person who uses the most.”
The school district was not considered. This is because I am not very interested in children’s education. He doesn’t even think that getting a good education and going to a prestigious university guarantees success. Among the numerous clients he met, many were successful without ever attending college. He said, “I don’t want to achieve anything through children, especially through children’s education,” he said. “If the children find what they want, they will apply for it, but I will not force them to say’this should be done’.”
For him, a house is a’place to recharge’. What you want to have at home is a large bookcase and a large wooden table. When I moved to the house where I live, I realized my dream by putting a bookcase and a table instead of having a TV in the living room. On weekends, he said he was sitting at this table and reading books all day.
Another place I care about is the huge wall with magnets attached to it. He explained, “I bought a magnet every time I went on a trip, but I couldn’t handle it in the refrigerator, so I made a wall made of iron plates,” he said. “I put my favorite postcards and world maps together to create a space where I can revive the memories of my trip.” .
Reporter Kang Young-yeon [email protected]