Celebrity

Ryu Jun-yeol earned 4 billion won from his building in Gangnam: Getting a loan of 90% of the building’s price, reconstructing and selling it

In 2020, Ryu Jun-yeol purchase the building for 5.8 billion won. It was then rebuilt at a cost of about 2.4 billion won. When the house was completed in 2022, Ryu Jun-yeol sold it at 15 billion won. He made such a huge capital gain.

Actor Ryu Jun-yeol succeeded with his building tech. He made at least 4 billion won in profits by reconstructing the small building in Yeoksam-dong, Gangnam-gu. In two years of real estate investment, he earned more than twice the price when he purchased it.

Ryu Jun-yeol’s real estate strategy is called “leverage” investment. He established a private company to raise loans. He received loans twice, once as a land loan and once as a new construction loan. In short, it is called “debt tech”.

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Ryu Jun-yeol building in Gangnam

In 2020, Ryu Jun-yeol bought the land in Yeoksan-dong under the name of “Deep Briding”, a private company. The purchase price (for the land of 83 pyeong) was 5.8 billion won. At that time, he borrowed 5.2 billion won from the bank, which means 90% of the sale price was set up as loans.

Ryu Jun-yeol immediately reconstructed the building. The single-story building was replaced by a 7-story building with two basement floors. In the construction process, he earned a loan of about 1.7 billion won as a new fund.

Ryu Jun-yeol building in Gangnam

Shin Jong-yeop, the chief team leader of “Building Road”, explained, “The total floor area of the new building is 1,013.35 square meters (about 306.54 pyeong). If the construction cost is set at 8 million won per pyeong, it would become 2.4 billion won since about 70% of the construction cost was paid by loans”.

In November last year, Ryu Jun-yeol became the owner of that Gangnam building. But he immediately put it on the market. The building was sold for 15 billion won in January. The profit is estimated to be 6 billion won before tax and 4 billion won after tax.

Ryu Jun-yeol building in Gangnam

“Building Road” team leader Shin Jong-yeop said, “The buy and sale of that building helped him earn a tremendous amount of profit because it already excluded property acquisition tax, construction cost, interest fees, etc.”, adding, “There are still final stages, such as balance payment and registration transfer”.

Ryu Jun-yeol established a private company “Deep Briding” in March 2018. The company’s representative Mrs. Kim, Ryu Jun-yeol’s mother. An official from CJS told Dispatch, “Ryu Jun-yeol established the company to manage his personal income”, adding, “The company also planned and conducted several exhibitions”. 

Ryu Jun-yeol building in Gangnam

They also explained why Ryu Jun-yeol purchased the building, saying, “He planned to construct a building in Gangnam to run a clothing business (with his friends)”, adding, “Due to Covid-19, the business plan was put on hold. He then decided to sell the building”.

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Nate
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