CEO Jung Min-woo Reveals Case of "150 Million Won Profit in 5 Months with 75 Million Won Net Investment"

CEO Jung Min-woo introduced a case where an investor was advised to bid 674 million won for an apartment and successfully invested with a net investment of 75 million won by utilizing a jeonse deposit of 600 million won. This investor saw the market price rise from 870 million won to 900 million won in just five months, realizing a profit of approximately 150 million won.

Through this case, he emphasized that it is entirely possible to enter the real estate market with a small amount and achieve substantial profits, explaining the effectiveness of investment strategies using the jeonse system.

Citing the example of the Mia-dong Trezium apartment in Gangbuk, CEO Jung Min-woo explained that by utilizing the LTV of 70% (limit of 600 million won) applicable to first-time homebuyers based on a successful bid of 990 million won, one can enter the Seoul 30-pyeong apartment market with a net investment of 400 million won.

He demonstrated that purchasing an apartment in a prime Seoul area is possible with initial capital of about 400 million won, including acquisition taxes, and advised actively utilizing loan systems.

CEO Jung Min-woo stated that by utilizing an additional 100 million won loan from secondary financial institutions, in addition to the 600 million won loan from banks, the net investment can be lowered to 300 million won. This can be an effective way to reduce the initial capital burden.

However, he added that a cautious approach is necessary, as secondary financial institution loans come with a high-interest rate of around 10%.

CEO Jung Min-woo explained that with a 600 million won bank loan (at a 4% interest rate), the monthly principal and interest repayment is approximately 2.86 million won, and if an additional 100 million won from secondary financial institutions is added, the total monthly repayment reaches about 3.69 million won. This level of repayment, reaching 50% of one's monthly salary, can be a significant burden.

Nevertheless, he analyzed that it could be a viable housing alternative for dual-income couples (with an annual salary of around 50 million won) who prefer large-scale apartments in Seoul over villas or officetels.

If one is prepared to bear the burden of loan principal and interest repayments, entry into an in-Seoul apartment is possible, which can be seen as part of a strategy to secure long-term residential stability, moving beyond a short-term perspective.

CEO Jung advised that while this loan utilization strategy is not suitable for everyone, it can be a valid option for those with clear goals.

The government's August 13th measures, which mentioned easing regulations on relocation loans, have brought new expectations to the real estate market. This is expected to contribute to the revitalization of redevelopment and reconstruction projects, along with the easing of total debt limits.

Such deregulation has the potential to generate large-scale relocation demand in the short term, affecting the jeonse and monthly rent markets.

When redevelopment and reconstruction projects fully commence, relocation demand could surge in the short term, potentially causing instability in the jeonse and monthly rent markets. One of the reasons the government is cautious about easing relocation loan regulations is to prevent such short-term side effects.

The government is facing challenges in minimizing rapid market volatility while pushing forward with supply measures.

CEO Jung Min-woo warned that an obsession with short-term gains can lead to investment failure, emphasizing that a long-term perspective is essential for successful investment. He shared his personal belief that most bad things stem from a short-term outlook.

He explained that in both financial tech and home ownership, rather than being swayed by short-term market conditions, it is important to invest consistently with a long-term approach.

CEO Jung Min-woo suggested that auctions could be an attractive alternative for those who find it difficult to buy a home. He explained that auctions offer the advantage of purchasing at a relatively lower price.

He particularly recommended considering auctions as another option for buying a home at a reasonable price in the current market, beyond subscriptions or waiting for new cities.

CEO Jung Min-woo introduced an auction case where an officetel of 9.4 pyeong (net area) was successfully bid for approximately 68 million won, generating a monthly rent income of around 300,000 won. This demonstrates that stable monthly rent income can be achieved even with small-sum investments.

Such small-sum officetel investments provide an opportunity for office workers to secure financial余裕 through additional income beyond their salary. He also emphasized that the area is sufficient for actual living space.

Through this case, he showed that auctions are a means to achieve various investment goals beyond simply purchasing a home, and presented a way to participate in the real estate market with a small amount.