Chae Sang-wook, a popular YouTuber and former top real estate analyst
Answering all the questions of a child dreaming of owning their own home!

Essential survival knowledge in Korean society
From basic knowledge about the housing market to customized subscription strategies tailored to your situation.
A Real Estate Introduction for Beginners

Sang-wook Chae, the author of "Studying Real Estate for the First Time," is a leading specialist who has a thorough understanding of the Korean real estate market, to the point where he is called an expert among experts.
Even so, South Korea's real estate policy has become so complex that it is now said that only advanced mathematics can be used to find a solution.
So, he realized how difficult it is for new members of society or real estate beginners to 'buy a home for actual residence' in our society, and wrote this book to help them overcome this difficulty.


"This is my first time studying real estate" starts with basic common sense about the housing market, and covers things to keep in mind when purchasing an existing home, how to evaluate its value, and the different types of subscriptions available in the subscription system, as well as how to approach the subscription process.
In addition, this book covers almost all topics related to real estate, from common sense about houses, apartments, and the 3rd new town to the history of real estate policies that have been repeated over the past 50 years, as well as which policies are currently being applied and their characteristics, and furthermore, which aspects are advantageous and disadvantageous to me, so that I can understand them and respond wisely.
We now live in a world where information is competitive and profitable.
In short, you need to know something to have a home of your own.
Now, let's all stand on Chae Sang-wook's shoulders, look down on the Korean real estate market, and take the first step toward owning a home!

What is a house, or housing? According to the Housing Act, a house is defined as all or part of a structure designed for long-term independent living by members of a household, including the land attached to it.
The important thing is that a house is made up of a building and attached land. Ultimately, a house is a space that is made up of land and a building and is structured to allow for long-term independent living.
--- p.14

South Korea's current housing unit count of 383 per 1,000 people is expected to settle at between 417 and 433 by 2025, if all goes as planned.
If that happens, the housing supply level will be similar to that of major countries.
And the decline in the total population is expected to accelerate around this time compared to now.
In that case, the relative effect of the number of houses per thousand people increasing due to the effect of the decrease in the denominator population is more likely to occur.

There is a lot of talk in the real estate market about a shortage of housing.
There is a very widespread perception that rising housing prices are due to a lack of supply.
Based on the level of housing supply and indicators, there is some basis for the opinion that there is a shortage of housing supply as of 2021, but the situation will change in 4-5 years.
This is because there is a high possibility that the housing shortage will be overcome by the large amount of housing supplied in the future.
Of course, we need to check whether the housing supply is progressing as planned.
Supply is that important an issue.
--- p.30~31

The current third-generation new town is being planned to be more advanced than the first and second-generation new towns, including a more advanced transportation network.
As society develops and grows, the design of new cities inevitably changes.
However, the 3rd new town supply plan also came out at a time when supply was becoming important again due to the rapid rise in housing prices in the late 2010s, and it was announced that a total of more than 2 million houses would be supplied, including those in new towns as well as old towns.
It is similar to the first and second new towns in that ‘new towns emerged due to rising housing prices and the logic of supply and demand.’
In short, Korea's new cities, both past and present, are emerging as a means to address supply shortages.
The historical background for the supply of new cities has always been to solve the supply problem during periods of rapid rise in housing prices.
As a result, when designing new cities, we had no choice but to focus on housing.
That's why there are quite a few problems with residential-centered new towns.
--- p.55~56

So how will the current third-generation new towns be built? The overall design of these new towns places a strong emphasis on self-sufficiency and connectivity with the surrounding area.
In particular, living in an era where environmental conditions are emphasized, we emphasize an eco-friendly image, including green spaces that serve as ecological axes for wild animals and waterside facilities.
Among the new cities, Pangyo, Gwacheon Knowledge Information Town, and Gwanggyo have a very high proportion of land for business facilities and urban support facilities, and thus have urban characteristics that are different from those of the new cities built so far.
This means that from the beginning, it was planned with a focus on jobs, not as a bedroom town.
This will likely result in a new city that will absorb the housing demand in the surrounding area and perhaps serve as the city center of the area.
This is because the land use plans of these three cities are different from those of other cities.
--- p.57~58

If you have enough funds, you can choose a place with good location and products.
However, since almost every generation has limited funds, it can be very difficult to decide which to prioritize between location and goods.
From here on out, it's probably a matter of preference or personal taste.
If you live in a place with a good location, your life may be inconvenient, and if you live in a place with a good complex, you may experience other inconveniences due to the location, so I recommend that you set your own standards and resolve them.

Both location and product are important concepts.
If you approach real estate after clearly understanding these two concepts, you will find that your perspective will be different from the past.
For example, if you think location and surrounding conditions are more important, you should focus on finding a good location.
If you value the commercial aspect more than the location, you should strive to find a home that fits your lifestyle and has better commercial characteristics.
After all, the house you live in is something you choose.
--- p.68~69

These days, there are many domestic investors, known as "Seohak Ants," who are investing in the stock market of the United States, the country with the world's largest GDP.
As you read this, does any representative American construction company come to mind? Or have you heard of them? Probably not.
The proportion of the construction industry is bound to decline as the country becomes more developed.
In our country, the proportion of the construction industry has been maintained at around 5-6% of GDP, but since 2015, it has actually increased to around 8-9% of GDP, making it a very high proportion that is difficult to find in other countries.
--- p.110~111

It's surprising how, despite continued stimulus measures, the market hasn't come back to life.
If we just look at the support policies announced so far, there are so many that it is difficult to list them all.
It was a feast of stimulus measures, with virtually every possible stimulus measure appearing, including easing the transfer tax on multiple homeowners, reducing acquisition taxes, and, in certain years, 100% easing of the transfer tax, relaxing standards for resale of pre-sale rights, abolishing the land transaction permit system, and abolishing speculative overheated zones.
But despite this massive stimulus, the housing market has been stagnant for more than five years.
What could be the reason?
--- p.126

Many working people dream of a life after retirement where they become building owners or rent out their homes.
So, even if it's not a large building, interest in small buildings has grown.
If you want to rent out multiple properties and receive monthly rent, understanding the housing rental business system is essential.
A person or company that rents out a house and registers it with the district office or tax office is called a housing rental business operator.
Registering with the district office is an act of notifying that you are conducting a business, and registering with the tax office is to receive income or tax benefits from the housing rental business.
Since the housing rental business is also a ‘business’, you can think of it as registering a business.
Since a housing rental business can be registered under one's own name or while working at a company, there are quite a few office workers who have registered as housing rental business operators.
You don't necessarily have to be a full-time home rental business owner; you just have to meet the qualifications of the district office and tax office.
--- p.140~141

The notice of recruitment of residents is a notice that contains everything related to subscription.
This public notice is a public notice prepared by the business operator implementing the housing supply and made available to all in accordance with Article 21 (Public Notice for Recruitment of Tenants) of the Regulations on Housing Supply.
Most of the notices for resident recruitment can be easily found on the Internet by searching for the specific complex name.
You can find it through various sources, such as the subscription home site or the construction company website of the apartment brand in question.
What's important is how you look at it.
Important things to check in the resident recruitment notice are listed relatively early on.
--- p.182

Do you truly understand the difference between reconstruction and redevelopment? While these two terms may seem similar, they have significant differences, so it's important to use them wisely.
If you write without distinction, the listener might think, 'You're still a beginner in real estate.'
Housing reconstruction and redevelopment are methods of downtown redevelopment.
The method of destroying large areas of residential land in the city center and building new ones is called reconstruction or redevelopment.
The surrounding environment is good, but the houses are old, so if only new houses are built, it can be rebuilt.
On the other hand, if the surrounding environment is poor and the houses are old, and both the surrounding environment and the houses need to be built anew, then it is redevelopment.
--- p.212~213

“Beginners calculate after selling, intermediate investors calculate before selling, and experts calculate before buying.” There is a saying about taxes.
Here, an expert does not necessarily have to be a tax accountant or have equivalent tax knowledge.
However, taxes are something that can easily lead to losses if you don't calculate them before selling, so it's helpful to understand them in advance.

--- p.244