Instead of Cash, Here… Asset Management for a Couple in their 30s

Their 730 million won includes 170 million won borrowed from family.

The couple has a total of 730 million won in available funds, including Jeonse deposit, savings, and stocks, but also carries a debt of 170 million won borrowed from family.

While the couple disagrees on whether to invest in savings or ETFs, they are seeking the optimal investment to consolidate into one prime property.

Securing a new apartment despite low application scores and special allocation restrictions is an achievement, but the regrets concerning location and sale price remain as limitations of the winning process.

Nevertheless, winning with low application scores and special allocation conditions is positively evaluated, and currently owning two newly built apartments is interpreted as a stable asset portfolio.

An expert pointed out that holding cash has led to real losses over the past 20 years and proposed a strategy of consolidating assets by upgrading to a higher-tier location.

Holding cash leads to a real loss of purchasing power when the prices of other assets rise.

Holding cash has been one of the most unsuccessful investment strategies in the long term over the past 20 years; it is necessary to hold only a portion for flexibility and actively invest the rest.

Simple savings only preserve the principal and have minimal asset growth effect, leading real estate investors to consider additional real estate purchases, but there are variables such as fund dispersion and heavy acquisition taxes.

In this situation, investing in financial assets to hedge against inflation-induced asset value depreciation and secure gains is an effective strategy.

Since the appreciation rate of higher-tier locations is predicted to be greater than that of existing homes, it is explained that consolidating assets by shortening the time frame is advantageous.

Although short-term capital gains tax may be incurred, consolidating assets for greater profits is more beneficial in the long run.

Instead of just keeping cash in savings, it should be diversified into financial assets to protect asset value. A hedging strategy combining index ETFs and gold can expect returns of 7-10% per annum, acting as a buffer until upgrading to a prime property.

This approach can yield returns of 7-10% annually, serving as an effective hedging tool to maintain asset value until transitioning to a prime property.

Osan Segyo 2nd District is a lower-tier Gyeonggi area, grouped with Pyeongtaek, and is evaluated as having weaker upward momentum than Cheonan.

Anyang Central I-Park Sujain 39-type is formed at approximately 50% of the 84-type's sale price, and rather than expecting a large increase solely because it is a new development in a non-regulated area, its objective appreciation potential should be reviewed.

Considering after-tax returns, it is suggested that financial investments may be more advantageous than real estate investments.

In addition to Mokdong Central I-Park We've and Mokdong Lotte Castle Winner, the Maestro complex was also mentioned as an additional consideration, noting the price similarity between Mokdong Lotte Castle Winner (built in 2005) and Maestro (built in 2019).

Considering strengthened real estate regulations and taxes, skepticism is raised about how much of the profit earned from real estate investment will ultimately remain in hand.

Specifically, advice was given on tidying up owned real estate, coupled with the difficulty of choosing an 18-pyeong residence for child-rearing environments.

The expert warned that if investment assets drop by 20%, not only will the principal be lost, but conflict between the couple could also intensify.

It was suggested that current owned complexes are skewed to the west, necessitating consideration of southeastern locations for portfolio diversification.

In the mid-to-long term, there are many good investment opportunities in the eastern and southeastern regions, requiring a strategy of inheriting relocation expenses through redevelopment/reconstruction occupancy rights and interest in undervalued complexes like Yeongtong.

This complex, completed in the early 2000s, is evaluated to have secured redevelopment project feasibility in the future.

Built in the early 2000s, there is a high possibility of securing redevelopment project feasibility when considering floor area ratio and apartment shares.