Records over 30 years, from 1986 to 2016. - KOSPI: 21.4x - Gangnam Apartments: 16.7x - Nationwide Apartments: 13.5x (If this is the national 'average', the trap of averages is way too huge) - Gangbuk Apartments: 10.4x
- Even the 'National Market' (K-stocks / Gukjang), which everyone screams not to touch, showed higher long-term returns than Gangnam apartments. Do I even need to mention the US market (Mi-jang)? - So, if you just look at the rate of return, you might think, "Are you stupid? Why do real estate? You gotta do stocks." But that's obviously a brain-dead take (literally: head-breaking sound). Real estate is fundamentally about leverage, so you need to look at 'profit' not just 'return rate.' - "Who doesn't know that Gangnam apartments are pure gold (gae-kkul)? Why wouldn't they buy one?" Therefore, if you are a non-homeowner who can't buy that "smart single unit," stocks seem like the right answer for now. - For ordinary folks who aren't getting a big inheritance from their parents, it seems like the right strategy is to stick to stocks until you build up some assets, and then switch over to real estate when the timing is right to buy your own home. - Q. This is a question: Let's say I bought a house by doing full leverage 'Yeong-kkeul' (soul-squeezing). If my judgment is wrong, wouldn't I be totally fucked (ㄹㅇ 좆되는거 아님)? You can't diversify real estate like stocks... - Even so, for people who can't trust real estate, perhaps preparing one unit for actual residence and then going all-in on stocks for the rest is the second-best option.
※ Obviously, there's no guarantee that 30 years of records will be the same in the future. This dog-friend (I, the poster) knows absolutely jack shit about economics. If you argue against me, whatever you say is probably right.
"Everyone agrees leverage is the real MVP, leading to spicy takes about just leveraging stocks instead. But watch out, greed kills and forced HODL is key."
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