According to a recent report, the rich people in Korea prefer real estate the most for extra income followed by stock and savings. 51.8% people with more than 1 billion won answered real estate because of its stability. However, the recent tougher government policy on real estate is turning many of them to land around the capital and South Gyeongsang Province alongside auction as a tool to buy a land or house.   

Zigbang‘s June report shows 10.4% monthly land trade of Seoul citizens, a 0.86% increase on 2015, and 2.05% land price fluctuation as of June this year which already have surpassed half of the same period last year (3.88%). 

As a result, people’s interest in buying land or house through auction is heating up the market due to its nature that one can buy it at a relatively cheaper price. Also, failure in bidding can further lower down the price up to 50% less than its original value. 

But experts voice together that you should not think it easy as you must have your own prospect whether the price of the land or property you are buying will go up after 3 years, 10 years or more. 

Once you think you have found one you would like to buy at any auction information providers, you then need to give thorough analysis on the right and value of the land or property alongside commercial value of the surrounding areas. It is also a good idea to take an auction class before you jump into the field. 

If you think you are a novice, it is far better you get some help from auction specialists. The auction process normally goes this way: write your address, name and bidding price on the offer of tender and put it into the bidding box; the deposit is 10% of the lowest selling price; approval of the sale come after 7 days on 99% cases. 

The good thing about auction is that you are relatively free from regulations and can avoid all those complicated issues on who owned the right in what status since the ownership belongs to the court of law. 

Here are check lists and helpful tips before making a bid:
1 Check all necessary information 
2 Check commercial value of the land or property
3 Seek specialist’s advice
4 Try equity investment (part owned) if you do not have lump sum
5 Do not be hooked by exaggerated or false ads 
6 Set up your own principle: this is most important not to turn your investment into speculation