[서평]
The basics of real estate public auctions
Written by Lee So-ra and Kim Heon-gon│Korea Economic Daily│22,000 Won In reality, we cannot live our lives by working. There will come a time when we will have to live solely on consumption without working. What preparations will you make for that time? The authors of the new book ‘The Essentials of Real Estate Public Auctions’ recommend ‘Investment in Real Estate Public Auctions.’
Auctions are often the first thing that comes to mind when thinking about investing in real estate. But why do the authors speak of a public auction rather than an auction? The reason is simple. In a court auction, a bid is usually won at about 90% of the market price, while a public auction is usually won at about 85% of the market price. Under similar conditions, short selling is more profitable. In addition, public auctions have the great advantage of being able to be conducted at any time while maintaining a living since bidding is done online rather than going to court.
Nevertheless, what is the reason why there are not many public auctions? First of all, there are fewer public auction items compared to auction items. And if there is tax delinquency, distribution may be difficult and the clearing process may be difficult. However, people who have actually invested say that there are items that do not require brightening and that there are many cases where the brightening process is relatively easy. And as it turns out, the authors say that the biggest reason why public auctions are difficult is ‘lack of information.’
The most impressive content in this book is the success story of the ‘300 million won project’ published at the beginning. The book begins by introducing the case of ‘Haengmugi (pen name)’, an ordinary office worker who successfully completed a 300 million won project, in the form of a handwriting. With seed money of 10 million won, he won bids for 7 items and bought and sold them over a period of two years, earning a profit of about 150 million won. He is now a ‘dad who earns 100 million won a year just by investing in auctions and public auctions’ in addition to his salary from work. The book contains the entire process from why he decided to become rich, to the process of winning and selling an apartment in Paju with a bid of about 60 million won for the first time, to the entire process of gaining courage after his first investment experience and succeeding by successively investing in apartments in Jecheon and Hanam. It was published in a realistic way. This would be a great story for novice investors to get a feel for what short selling is.
Chapter 2 of the book is filled with content that explains the entire public auction process step by step. When we think of public auctions, we often think of public auctions of seized properties, other types of items, methods of obtaining information by searching for those items, methods of researching market prices online, and rights acquired by analyzing rights through real estate-related data such as certificates of all registration details. Everything that a short auction investor must know is explained in detail, including how to check, how to bid through Onbid, win a bid, and make a profit. It is full of information that only real investors can provide, including how to get the best loan, tips for saving taxes, on-site research techniques, and negotiation strategies.
In the book’s prologue, the author sends the message, “If you are afraid, you lose, but if you are excited, you win.” This is a statement that emphasizes confidence in short auction investment. The author emphasizes that anyone can succeed in the world of real estate public auctions if they have appropriate knowledge and preparation. In fact, the book contains specific stories of experiences in building assets with a small amount of seed money, and if you follow them one by one, you will gain the courage to make a public auction on your own.
However, of course, public auctioning is a skill, not a study, so if you just glance at it without trying it yourself, it will only complicate your mind. Through this book, the author recommends that you start by opening the Onvid window and trying it yourself. Vague fears about investing will disappear and hope for real estate investment will arise.
In particular, the biggest appeal of public auctions is that you can plan a new future without quitting your job. The author says: “A public auction using real estate is an investment as safe as the land we step on.”
Yoon Hyo-jin, Hankyung BP Publication Editor
