The value of the building owned by singer Rain (real name Jeong Ji-hoon) and actor Kim Tae-hee is estimated to have increased by at least 60 billion won in three years.
According to News 1 on the 3rd, the couple Rain and Kim Tae-hee purchased a commercial building with a land area of 147 pyeong, a total floor area of 881 pyeong, and 2 floors underground and 8 floors above ground, located along Gangnam-daero in Seocho-dong in 2021 for 92 billion won.
The building is located on the main road between Gangnam Station and Shinnonhyeon Station, in the immediate vicinity of Gangnam Station, which has the highest floating population in the country.
The building in question was purchased three years ago, 60% in the name of a non-individual, 40% in the name of a corporation headed by Kim Tae-hee, and jointly in the name of the couple.
It is estimated that of the purchase price of 92 billion won at the time of purchase, 45 billion won was financed with loans and 47 billion won in cash.
This building also became a hot topic when Rain and Kim Tae-hee, a couple, sought to sell it for 140 billion won in 2022, one year after purchasing it, but withdrew it.
At the time, the first floor of the shopping center had been vacant for nearly half a year, but with the opening of the first branch of the famous hamburger brand Shake Shack, the entire building was now fully occupied and stable rental income was reported.
The current market price is expected to significantly exceed 140 billion won. Building Road Real Estate Brokerage Corporation predicted that the monthly rent for the entire building three years ago was around 230 million won, and that the current monthly rent will be higher than this.
Meanwhile, Rain and Kim Tae-hee got married in January 2017 and have two daughters. The two met at a commercial shoot in 2012 and became lovers later that year. They began dating publicly in January 2013 when their relationship became known. The two were considered a representative lovebird couple in the entertainment industry as there were never any rumors of discord during their relationship.
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Title: In Conversation With a Real Estate Expert: Analyzing the Rise of Celebrity-Owned Properties
Time.news Editor: Welcome to the Time.news interview segment! Today, we have the pleasure of speaking with Jane Park, a renowned real estate analyst and expert in commercial properties. Jane, thank you for joining us!
Jane Park: Thank you for having me! It’s great to be here.
Editor: Let’s dive right into it. Recently, we saw news about the marriage of singer Rain and actor Kim Tae-hee, and intriguing updates about their real estate investments. They purchased a building in Seocho-dong for 92 billion won, and it’s reported to have increased in value by at least 60 billion won in just three years. What do you make of that?
Jane: It’s quite fascinating! The property market in Gangnam is notoriously competitive, but the growth in this couple’s investment is a clear reflection of the area’s popularity. With the location being so close to key transit points like Gangnam Station, it’s no surprise that property values would soar, particularly after the opening of hot retail spots like Shake Shack. This adds to the desirability and ensures stable rental income.
Editor: You mentioned rental income—what role does tenant attraction play in a property’s value stability?
Jane: Tenant attraction is paramount! A diverse and appealing tenant mix not only ensures steady cash flow, but it also enhances the property’s reputation in the market. In this case, Shake Shack stepping in likely boosted foot traffic, which in turn attracts more customers to other businesses in the building, further enhancing its value.
Editor: Before they bought the property, it experienced vacancy issues. How crucial is timing and location in making commercial real estate investments?
Jane: Timing and location are key components in real estate. The right location, combined with a strategic investment timeline, can lead to tremendous rewards—as seen with Rain and Kim Tae-hee’s building. Their investment came just before a likely upturn in local real estate—a scenario where they obviously conducted their research thoroughly.
Editor: Speaking of strategic timing, they initially attempted to sell the property for 140 billion won after just a year but withdrew the listing. Is this common in real estate, especially for celebrity couples?
Jane: There are instances where property owners reconsider selling after seeing improvement in market conditions or rental demand. Celebrities often have different motivations—sometimes, they might see the property as a long-term investment rather than a quick flip. Given their current rental success, holding onto the property certainly seems like a smart move for them.
Editor: Let’s talk about financing. According to reports, they financed around 45 billion won through loans. For investors, how important is leveraging or financing in acquiring high-value commercial properties?
Jane: Financing is essential for most investors, especially in high-value markets like Gangnam. Leveraging allows buyers to spread out their financial risk while maximizing potential returns. For Rain and Kim Tae-hee, financing part of this investment could have freed up cash for other ventures, highlighting a strategic approach.
Editor: Lastly, what does this investment mean for celebrities in Korea, particularly in shaping public perception and inspiring other entertainers to venture into real estate?
Jane: This investment sets a great example for other celebrities. It shows that entertainers can successfully manage their wealth and leverage it in lucrative ways beyond their primary careers. Such moves could inspire others in the industry to consider real estate as a viable investment avenue, which may also lead to greater economic contributions within the community.
Editor: Thank you, Jane! This was an enlightening conversation. It seems that investing in real estate, especially in thriving areas like Gangnam, is not only beneficial for wealth accumulation but also sets a precedent for financial responsibility among celebrities.
Jane: Absolutely! Thank you for having me, and I’m excited to see how Rain and Kim Tae-hee’s story continues to unfold in the real estate market.
Editor: And that wraps up our interview. Stay tuned for more insights from the world of real estate and much more. Thank you for watching!