“Only at a certain time, only to a special person
“A formula that works is not a ‘standard’!”

There's no need to convince anyone that real estate is a viable investment asset anymore.
This can be seen simply by looking at the graph of real estate price changes in South Korea over the past several decades, or by looking at the asset ratio of the top 1%.
But these days, when the market has cooled down due to signals of a real estate downturn, the public says.
"They say real estate is going to crash. Should I invest now?" "Prices have soared during this bull market. How can I buy a house?" In these instances, remember this famous quote from legendary value investor Charles Munger.
“Following the crowd means regressing to the average.”

When the public's enthusiasm for investing cools down, that's when investment experts scoop up the "good stuff" in the market.
This is why you should read the book by Kim Sa-bu, a first-generation real estate investor who is the mentor of many of today's famous investment experts and has experienced both booms and busts.
First published 15 years ago, "The Essentials of Real Estate Investment" is still called the "real estate investor's textbook" and "must-read for real estate investment," and its value continues to grow with time.
The 2022 revised and expanded edition introduces the investment formulas that yield the highest returns across a wide range of properties, including apartments, villas, officetels, and commercial properties, updated to reflect numerous policies, cultural trends, and shifting consumer preferences. It also unveils for the first time the newly revised "20-Year Project to Achieve Economic Freedom."
Are you tired of hearing stories of success from someone special at a special time? Reading this book will lighten your heart.
This is because it introduces the fundamental principles of investment that can be achieved by ordinary people at any time and in any amount.

Even if you have hundreds of billions of dollars, if you keep spending it and it just disappears, no one will be able to live comfortably while spending it.
Because I'm anxious.
Human psychology is based on the money you have.
So, when this default falls, you feel anxious because you feel like you are constantly losing money.
Therefore, what is more important than how much money you have is whether you have a system that continuously generates money, and to live a truly comfortable life, having a system that generates money is more important than how much money you have.
"The Essentials of Real Estate Investment" is the secret to creating this very system.

---From "Opening Remarks_The Principles of Real Estate Investment Rewritten Again"

The rebound in real estate prices ultimately began at a time when strong pessimism had taken hold among the public, and the consequences of that rebound were quite toxic.
Of course, based on this history, I am not trying to say that real estate prices will rise again with the logic of, "See, history repeats itself."
Before getting into the main topic, I bring up history because I want to point out that if you simply dismiss the real estate myth as over without deeply considering or examining whether real estate is worth investing in, you could end up with painful regrets, just like in the past.
Now, let's get to the main point and answer the question about the chapter title.
Real estate investing is not only still relevant in 2022, but it will still be relevant in 10, 20, and 30 years.
Why is that? Here's why:
---From "Chapter 1: Is Real Estate Investment Still Valid?"

A recession creates a strong desire among property owners to sell their properties.
Anyway, the difference between the sale price and the lease price is not that big.
So, even if you sell it, you won't be able to make a big profit.
And yet, I find myself thinking like this.
'If the sale price of real estate does not continue to rise in the future, there is no need to hold onto it and pay property tax, inheritance tax, etc.
'It's better to sell than to do that!' In fact, for smart investors, this is the right time to buy.
But ordinary investors think the opposite.
Now that there is nothing to go up in the future, I am saying that I should sell the real estate even though I don't have much in my hands right now.
And this is the moment when wealth moves from the hands of ordinary investors to the hands of intelligent investors.

---From "Chapter 2_The Essentials of a Smart Investor"

As of October 2022, the biggest issues appear to be gap investments in local real estate and villas in the Seoul metropolitan area.
The local real estate gap investment we are talking about here does not simply mean purchasing a property with a jeonse deposit.
This refers to purchasing an old apartment in a small provincial city where the difference between the rent and sale price is virtually non-existent.
You have to think about it sensibly.
Why are real estate prices rising? There are two reasons.
One is that there are many people who want to 'own' that property.
Another reason is that it has ‘use value.’
(Omitted) What about its utility value? Not many people want to own it, yet its price keeps rising.
What happens then when its utility declines or fewer people want to use it? It becomes neglected, not only in terms of "ownership" but also in terms of "utilization."
Therefore, if a property has utility value, you should only invest if you are confident that there will be long-term users.

---From "Chapter 3_The Essentials of an Excellent Investor"

The time to invest is around the end of a recession.
No matter how diligently you observe the market, it is difficult to accurately predict when a rise will occur.
Even if you know when the upward trend begins, it is extremely difficult to catch a good item at this time.
Because when the market atmosphere changes, everything changes in an instant.
Prices are likely to rise in an instant.
Let's remember.
Investments should always be made at the tail end of a recession.
It's too late to invest when the boom starts.
The next important thing is that you need to have money at this time.
Ordinary investors, unable to wait for the right time and simply greedy to make money quickly, end up spending all their money in the real estate boom and running out of funds.
Even if you know the critical moment that determines the success or failure of an investment, it is of no use if you do not have the funds.
At the crucial moment when the economy transitions from recession to boom, be sure to prepare funds to invest.

---From "Chapter 4_The Essentials of Investment Experts"

The term investment value implies that the price has the potential to rise, but it also has a defensive meaning, meaning that it can withstand a recession or crisis.
Perhaps the latter meaning is more important.
In the future, the real estate market in South Korea is likely to become more differentiated than it is now.
As public demand for housing stability grows, the government's direction is likely to lean toward that direction, and the stagnant working-age population and low economic growth will also have an impact.
Therefore, only real estate that can steadily increase in price or at least maintain its price despite these negative influences can achieve a large price increase during a boom.
From this perspective, consider which apartments might be a good fit.
Ultimately, it should be a place that more people seek out, a place that more people want to live in first.

---From "Chapter 5_The Basics of Target-Specific Investment"

Isn't "buy when it's cheap" a universal investment principle? Absolutely not.
Let's take stocks as an example.
If the price of a stock that was on a high has fallen, is it a good time to buy it? No.
There are more cases where the price of a stock falls and you buy it, only to have the price fall further.
It is not uncommon for recovery to take a considerable period of time afterward.
Therefore, the strategy of buying when prices are low is by no means applicable to all investment targets.
For this to be true, there must be a prerequisite that the investment target has a high potential for long-term growth and that the adjustment period will be short-lived.
In that sense, reconstruction can be said to have met these conditions.

---From "Chapter 5_The Basics of Target-Specific Investment"

Since nothing lasts forever, some wealthy individuals and investors disappear, while others emerge.
Many people are pessimistic about the situation in which people have fallen into the 'sudden poverty' category due to the sudden wealth created during a period of tremendous asset growth.
But there is no need to rush.
There is another opportunity.
If you have the belief that opportunity comes to those who are prepared, and you continue to study money with a passion for learning, you will remain a market participant.
Sometimes like a bulldozer, sometimes like a turtle.
Once you know what the problem is and have found a solution, do it.
You too can become rich.

---From "Chapter 7: A New Dream"

Let me emphasize again that wealth depends on knowledge.
Of course, the wealth we are talking about here does not mean the enormous wealth possessed by billionaires or conglomerates.
It simply refers to a life of leisure, where one is not burdened by money and lives without wanting anything.
And even if you become incredibly rich, you won't have much to spend your money on.
Unless you use your wealth to show off to someone.
So, isn't it unnecessary to spend your youth so depressed just to become rich? You should strive for a life of leisure.
But life now is also important.
And more importantly, even if you don't have much money right now, you have the hope and confidence that you can live a more comfortable life in the future.
To achieve that confidence, we must continue to invest in knowledge today.
This is a precious daily routine that should not be tired of.

---From "Conclusion for those of you who are tired of investing"