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Investing in Real Estate
The ownership of land has long been viewed as a solid and secure
investment.
There is good reason for this. Historically, the value of
residential land has always increased in value in the long term.
This has held true in every country with a capitalist based economy.
One of the great characteristics of land is that you have a tangible
asset. Land can be seen and used, and most importantly, for
investment purposes, developed.
Why Invest in Real Estate in the First Place?
The sad truth is that only 1 out of 20 North Americans is
financially independent when they reach retirement. The rest are
dependent on family, friends, or charities, and millions exist at
the poverty level, literally waiting around to die.
If you plan on spending all your money when you make it and retiring
on your social security, you need to wake up from your dreams!
Social security is designed to merely provide a supplement to your
investments and retirement plan. If Social Security is all you've
got, you are either going to have to continue working well past
normal retirement age, or be living a very meager lifestyle.
You deserve more than that, and you can have it with some financial
discipline and planning.
Why not just put your money in a mattress or safe deposit box?
Because inflation will kill you. It will eat away at your money's
value, actually making you poorer and poorer with each day that goes
by.
For those of you who need an explanation, inflation is simply the
general trend of prices to rise over time. Think back to 25 or 30
years ago. You could buy a nice new car for $5,000. A hamburger for
20 cents. An average new house for $25,000. You certainly can't do
that today. While the prices of some items are actually coming down
(computers, for example), the overall trend is up.
This means that over time your money will buy you less and less. For
example, if inflation is running at 4% per year, you need to earn 4%
on your money just to break even, more if you want to build wealth.
You want to invest in things that not only give you a good return,
but that also go up in value over time (appreciate).
Another reason to invest in Korean real estate is tax advantages.
Most of us are being taxed from all angles. We ARE NOT talking about
cheating the government or not paying taxes that are legally due.
However, prudent real estate investors will always structure their
investments in order to legally pay the lowest amount of tax. This
includes tax-free investments, tax credits (as in depreciation), and
tax deferral (as in most retirement plans).
Many people invest for cash flow. A common goal is to create a money
machine that will eventually replace you as the primary income
earner. This means that instead of you working for money, your money
works for you!
Smart investing will put you in the position where someday your
investments will earn more money each year than you do working at
your job. At that point you can retire and do what ever you want, or
continue to work and really sock away the dough and build up some
serious wealth!?
The main reasons for investing are:
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Appreciation
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Tax Advantages
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Cash Flow
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Retirement
Or stated another way, a great investment should have the following
qualities:
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Beats (or benefits from) inflation
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Gives you tax advantages
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Provides growth or cash flow
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Helps your overall retirement plan
Why invest in the Real Estate Market?
There are truly many advantages of investing in Korean real estate.
More millionaires have made their fortunes in real estate than
anything else! Here is what some of the wealthiest Americans have
said:
"Real estate is the basis for all wealth."
- Theodore Roosevelt
"Buying real estate is the best, safest way to become wealthy."-
Marshall Fields
"80% of all millionaires made it through real estate."-
Andrew Carnegie
Let's look at some of the advantages in more detail:
Appreciation
Over the past 30 years, Korean real estate values have continually
increased. There have, of course, been some periods where values
decreased, but the overall trend has been nothing but up. Like
anything else, the value of real estate is determined by supply and
demand.
So what are the factors that have made Korean real estate in such
high demand over the years? One of the main reasons is that shelter
is a basic human need. People need places to live, work, and shop
where they aren't exposed to the weather. In periods of high
inflation, real estate values go up. Real estate is an investment
that benefits from inflation.
Leverage
A great thing about Korean real estate is that you can tie up a big
asset with a relatively small amount of money.
Freedom
While there is some management and record keeping required, it is
nothing compared with some other investments. If you invested in a
business such as a dry cleaners or a restaurant, you would be
married to the place, putting in heaven knows how many hours. Real
estate investing can be done without too much interference with your
current job.
Someone else pays for it
With Korean real estate, the people who occupy your buildings are
called tenants. They pay you rent every month. The tenants literally
buy your investment property for you! When you invest in stocks,
bonds, or precious metals, you are the one who has to pay for it.
Cash Flow
Real estate provides you with a monthly cash flow. This can be some
very significant income, especially after the loan is paid off!
Solid Asset
Real estate is widely recognized as one of the greatest assets to
have. It is looked upon favorably by anyone looking at your
financial statements. Real estate is also easy to borrow against
should you need extra capital.
Once you understand all of the advantages of investing in real
estate, it is easy to see that very few, if any, other investments
can match real estate. No wonder it is the favorite of millionaires!
If you want to be successful, do what the most successful people are
doing: INVEST IN REAL ESTATE!
Invest in Korean Real Estate:
There is no PERFECT Investment
All investments are a trade-off between risk and return. An
investment with a high return will have a corresponding high degree
of risk. On the other hand, a safe investment with low risk will
offer a lower return or profit.
Therefore, any investment is a compromise - where each investor must
weigh the different levels of risk and return for any given
investment. One investor may be willing to take more of a risk in
exchange for the potentially large returns, while another is more
comfortable with safer, less risky investments. There is no perfect
investment for all people.
With that said, let's talk about the basics of financial planning.
Before doing anything else, the first steps are to pay off any high
interest consumer debt (i.e. credit cards), fund your retirement
accounts, and save up a safety net cash reserve.
If you don't have the money to do these things, you need to start
spending less and saving more (what a concept) so that you do. If
you don't take these vital first steps, you will never, ever be
wealthy.
Once you have taken the above basic steps, you are ready to invest
for your future, invest for growth, and invest to be wealthy!! From
this point forward, we are going to assume that you are ready. A
moment ago we stated that there is no such thing as the Perfect
Investment, and this is true. But one thing is for sure!
Korean REAL ESTATE IS AS CLOSE TO PERFECT AS YOU CAN GET!
Many people want to invest in Korean real estate, but they just
don't know exactly how to get started. There is a lot of bad
information out there, and people generally have lots of questions.
To cover everything in an organized, logical manner, let's look at
the most common questions- and discuss the answers.
Consultation
For everyone who has taken the time to order and read this special
report, I offer a review of your situation. It normally only takes
about one or two hours. We'll go over some questions, and determine
where you are at, and where you want to be.
No big sales pitch, no pressure, just honest information.
Because I have helped many of people find the right property to get
started, you save both time and money. You'll be totally informed on
market values, and will be the first to know about hot new
properties the moment they become available!
If you are ready and we both feel like we can work together- great!
I will prepare a customized plan for you and we'll get started.
If not, that's O.K. We will wish you all the best. That's it. I
never want to take on a new client if they aren't right for me and
I'm not right for them.
That's it. The next move is up to you. I can't help you if I don't
hear from you!
When you are ready, just pick up the phone and call me
010-5597-1057
or email me:
southkorealty@yahoo.com
Thanks, and I look forward to hearing from you and helping you on
your way to wealth and financial freedom.
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Sincerely,
Lee Jae Seong,
Founder and Chairman of SOUTHKOREALTY Real Estate Company.
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