"If You Bought SK hynix at 3 Million Won, That Was an 'Impulse Purchase'... Take Out a Loan and Buy a Home": Park Won-gap's Hard-Hitting Advice

[Financial News] As stock investing has become a common means of financial planning following the KOSPI's bull market, an expert has argued that owning a home is not essential if investors can generate stable returns from stocks. However, the expert also advised that real estate may still be a more suitable investment for people with impulsive investment tendencies.

Park Won-gap, a senior real estate expert at KB Kookmin Bank, appeared on the YouTube channel BuilnamTV on the 8th and said, "A home may now be a choice rather than a necessity. If home prices do not rise, you can earn returns through other investments, so why buy a home?" He added, "If you have consistently earned annual returns of more than 10% from stock investments over the past three years, you do not need to buy a home."
However, he said, "If you bought SK hynix for 3 million won this year, that may have been closer to an impulse purchase than a calculated investment." He added, "In such cases, it may be better to stop investing in stocks, take out a loan, and buy a home." His advice was that real estate may be a better investment than stocks for those who invest based on short-term trends or market sentiment.
Park also stressed, "We live in a diversified era," adding, "The same investment strategy does not apply to everyone." He advised people to find an approach suited to their individual circumstances. In the past, life followed a relatively uniform path of marriage, childbirth, and homeownership. Today, lifestyles differ from person to person, so he emphasized that home purchases should likewise be decided according to each individual's situation.

Park also recommended a practical home-buying strategy focused on areas whose recovery has been relatively slow rather than those that have already surged. He noted that most areas of Seoul had recovered their previous peaks from the fourth quarter of 2021, while some secondary urban areas had yet to escape their downward trend. "Rather than targeting higher-tier areas where prices have already surged, this is the time for a practical approach focused on undervalued areas that have not yet recovered their previous peaks," he said.
Park noted that "the Capital Metropolitan Area is a compact, high-density urban region connected by public transportation networks and Great Train eXpress (GTX), so price trends are readily transmitted from one area to another." He forecast that "depending on changes in interest rates or lending conditions, the price gap with higher-tier areas is likely to narrow, particularly in mid- to low-priced areas that have not risen as much." He also advised, "When moving from a non-large-scale apartment complex or a detached house, you could suffer losses because of a lack of transactions, so you must follow the principle of 'sell first, then buy.'" He added that single-home owners should also be cautious when moving up to a higher-tier area.
[email protected] Kim Hee-sun Reporter