Investment Property in Daejeon

Investment Real Estate in Daejeon

Investment Property in Daejeon
Investment Property in Daejeon

Daejeon property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Daejeon.

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Daejeon (Korean: [tɛ̝.dʑʌn] (About this soundlisten)) is South Korea’s fifth-largest metropolis. Daejeon had a population of over 1.5 million in 2010. Located in the central region of South Korea, Daejeon serves as a hub of transportation and is at the crossroads of major transport routes. The capital Seoul is about 50 minutes away by KTX or SRT.

Daejeon is one of South Korea’s administration hubs with the Daejeon Government Complex (Other administrative hubs: Seoul, Gwacheon and Sejong City). The Korean administration in the 1980s decided to relocate some of its functions from Seoul, the national capital, to other cities. Currently, 12 national government offices, including Korea Customs Service, Small and Medium Business Administration, Public Procurement Service, National Statistical Office, Military Manpower Administration, Korea Forest Service, Cultural Heritage Administration, and Korean Intellectual Property Office, as well as Patent Court of Korea, are located in Daejeon. Korail, Korea Water Resources Corporation, and Korea Minting and Security Printing Corporation are also headquartered in the city.

Daejeon has 18 universities, including KAIST and Chungnam National University. Daejeon has earned its name as “Asia’s Silicon Valley” and “high technology city”. The city hosted the Taejon Expo ’93 and the International Mathematical Olympiads in 2000. Several important research institutes are based in the city.

Daedeok Innopolis (Daedeok Research and Development Special Zone) is composed of 28 government-funded research institutions, as well as 79 private research institutes with as many as 20,000 researchers. In addition, Daejeon established the World Technopolis Association (WTA) in 1998 with the view of realizing regional development through international cooperation with world science cities. The WTA has grown to have 67 members from 32 countries, and it actively cooperates with many international organizations including UNESCO as its official consultative body.

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The financial stability of Daejeon has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Daejeon

Renting out your Daejeon buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Daejeonare – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Daejeon and be prepared to change your initial outlook.
  • Thoroughly research the Daejeon location with a special emphasis on fringe areas outside the main Daejeon metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Daejeon.
  • Ensure that your target investment property in Daejeon appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Daejeon properties yourself is an easy option, but are these savings justifiable when you run into Daejeon red tape? Physis Realty Daejeon office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Daejeon buy-to-rent sector.

With our expert guidance, investing in Daejeon provides the secure knowledge that your money is working harder than it would in a local Daejeon bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Daejeon, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Daejeon property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Daejeon

Flipping property in Daejeon

Flipping property is when we advise clients to buy a Daejeon property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Daejeon market has a time to react to the renovation.

The Flipping Strategy in Daejeon

Investment property flipping in Daejeon is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Daejeon real estate investments are sometimes referred to by professionals as ‘distressed’ Daejeon real estate.

What is distressed Daejeon property:

  • Daejeon property in need of renovation
  • Daejeon real estate with a change of puropose and use
  • Oversold Daejeon property
  • Bank repossessions in Daejeon

Put simply, long term investors in Daejeon purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Daejeon investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Daejeon property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Daejeon use a minimum profit value of 22% when looking at potential Daejeon projects. The reason for this is because there are lots that can go wrong in Daejeon property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Daejeon

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Daejeon, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Daejeon should be entrusted to only the highest-quality agency.

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