Real Estate Ownership vs. Investing in US Indices
Option 1)
Rent out a metropolitan apartment for 200M KRW deposit / 1.6M KRW monthly rent, and live in the provinces with a 200M KRW deposit.
Invest 150M KRW in JEPQ (switch to S&P 500 once living expenses are stabilized).
Dual income is possible, using surplus income to buy stocks and travel.
Mortgage principal and interest payment: 730,000 KRW.
Asset Structure:
Apartment (Gwangmyeong) 1.1B KRW
Stocks 150M KRW (JEPQ)
Loan 140M KRW (Mortgage principal/interest 730,000 KRW)
Option 2)
Sell the metropolitan house and live in the provinces via Jeonse (170M KRW deposit).
Invest 920M KRW of surplus funds in a SCHD : S&P 500 ratio of 7.5 : 2.5.
Once living expenses are stabilized, increase the S&P 500 weight and reinvest dividends.
No 730,000 KRW mortgage payment required, and a more stable stock portfolio compared to Option 1.
Possible to live on a single income for 2-3 years before returning to dual income.
Asset Structure:
SCHD & S&P 500 investment 920M KRW
Jeonse deposit 170M KRW
Which option would be better in terms of wealth accumulation?
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