A case of achieving a capital gain of 3 billion KRW with an initial investment of 100 million KRW in real estate
A case of significant success in real estate investment has become a hot topic in online communities.
It is reported that an investor who invested in an apartment in Jamshil-dong, Songpa-gu, Seoul, in 2004 has made a capital gain of nearly 3 billion KRW. Recently, a post titled "Cash of 100 million has become 3 billion" was shared in the real estate community 'Real Estate Study.'
The author of the post, Mr. A, stated that he used the 100 million KRW he had in cash in 2004 as seed money, while borrowing the rest to purchase an apartment in Jamshil Jugong Complex 1 for 480 million KRW.
Mr. A recalled, "Back then, I was even told I was 'crazy,' but looking back now, it was a big decision."
According to the sales contract that Mr. A revealed, he purchased a small apartment with a dedicated area of 43㎡ (approximately 13 pyeong) in Jamshil Jugong Complex 1 in November 2004. This apartment later underwent a reconstruction process and transformed into a large complex, 'Jamshil Els,' with 5,678 units in 2008.
Through reconstruction, the small 43㎡ apartment expanded into a mid-sized 84㎡ apartment, and the current market value of this apartment is approximately 3 billion KRW.
Looking at Mr. A's investment case from a profitability perspective, it can be seen that he realized a capital gain of about 3 billion KRW over 21 years with an initial investment of 100 million KRW.
In terms of simple investment returns, this amounts to approximately 30 times, with an impressive average annual return of about 17.5%.
As this case was shared online, many netizens reacted with comments such as "In the end, real estate is a battle of courage and patience," "Such decisiveness ultimately creates wealth," and "A true long-term investor."
Image sources: Online community, view of the city apartment complex from the Seoul Sky Observatory at Lotte World Tower in Songpa-gu, Seoul / News1, a citizen at a real estate agency in Songpa-gu, Seoul, looking at apartment listings in Jamshil. / News1
