How to become a Gangnam building owner with only 5,000 won a year

“Being a building owner in Gangnam is a once-in-a-lifetime thing. Being the owner of a building in the middle of Gangnam for the price of a cup of coffee is a dream, but I thought it could become a reality.”

Ye Chang-wan, CEO of Casa (32,Photo) said, “There is probably no one in Korea who hasn’t heard the joke of ‘a building owner over a creator’. I made Casa to help the public get one step closer to their dreams.” CEO Ye served as Chief Technology Officer (CTO) at crowdfunding company ‘Tumblebuck’ from 2014 to 2016, and served as an investment reviewer for venture capital (VC) Yellow Dog from 2017 to 2018. Since April 2018, he has headed Casa.

CEO Yee said, “Since my undergraduate days in California, I have been interested in social issues such as the gap between the rich and the poor and asset concentration. said

Yes, CEO’s thoughts also worked for investors. Starting with his first public offering, ‘Yeoksam London Bill’, the products that followed were sold out within tens of minutes or as long as several hours. There are a total of 6 buildings that Casa has listed so far, with an offering price of 38.4 billion won. The number of members is 160,000. Based on the recent public offering of the Cheonan TE Logistics Center, about 70% of the number of employees and 81% of the amount were reinvested.

Even in the midst of turbulence in the financial markets… double digit return

Although the financial market is shaking, Casa products are yielding double-digit returns. The KOSPI index, which soared to 3316.08 during the intraday in June last year, fell to the 2400 level as of the 22nd. Bitcoin, which had soared to 70 million won per piece in October last year, has now been cut in half to 30 million won per piece.

There are a total of 6 products that Casa has offered so far, of which ‘Yeoksam Londonville’ recorded the highest dividend at 5738 won per DABS. The final return was 14.76% per annum (before tax). Yeoksam Korea Technology Center also recorded a high rate of return of 12.24% per year.

CEO Ye said, “Currently listed buildings on Casa can be purchased for around 5,000 won per DApp. Because the motto was ‘Let’s become a building owner with a cup of coffee’, we set the face value to 5,000 won. “Investors perceive it as a product that produces a stable double-digit rate of return. Investors can make profits from dividends, capital gains, and gains from the sale of buildings by holding DApps,” he explained.

Taxes also have to be taken into account. Intuitively, the tax that investors pay to Casa is only a 0.2% commission paid when buying or selling DApps, and 15.4% of the profits and dividends generated from DApps trading. There is no tax burden on the ownership or sale of real estate.

CEO Ye said, “If you look at the real estate register for the building, the investor’s name is not included.” He said, “Investors do not have to pay taxes on acquiring, holding, and transferring real estate. You only have to pay the transaction fee and tax on dividends you receive while holding DApps.”

The amount that can be invested in Casa per year is limited to 20 million won for general investors. Income-qualified investors (income exceeding 100 million won) with proven investment qualifications through a separate application can receive up to 40 million won a year, and there is no limit if they are recognized as professional investors by a securities company.

Can you trust Casa?

“I’m a retired civil servant in Ulsan. When I tried to roll out severance pay, stocks were too risky and deposits didn’t yield high returns, so I got to know Casa. Is Casa safe?”

Casa employees receive many of these emails. It is a question of ‘Is it really a reliable product?’ Casa focuses on selecting real estate to increase product credibility.

CEO Ye said, “I want to say that the most important thing when choosing a real estate is ‘location’ in all of the 1st, 2nd, and 3rd priorities. This is because location is a factor that cannot be easily changed. If you are in the countryside, it will be very different from the buildings in the middle of Seoul.”

“The second is the tenant,” he added, adding, “The value of real estate is determined by the demand for a building due to the rent paid by the tenant. It is for this reason that Casa found a building to invest in, mainly in Gangnam.”

In addition, Casa does not directly manage the selected building, but manages it through a trust company. Investors’ deposits are also managed separately by creating specific money trust accounts at commercial banks such as Hana Bank, rather than the corporate accounts held by Casa.

However, investors should not believe this. According to the listed building securities declaration, Casa has set the type of investor suitable for DApps as Grade 1 (very high risk). This means that it is suitable for investors who can tolerate a high level of investment risk. Grade 1 products include junk bonds (corporate bonds with a credit rating of BB+ or lower).

What are the DApps trading at Casa?

DABS is an electronic (digital) asset-backed securities (ABS). To put it more simply, it means that assets (real estate) that cannot be separated by fragmentation can be separated (securitization) one by one. This fragmented beneficiary certificate indicates the right to receive a share in the amount invested by the customer.

Looking at the process of listing a building on an exchange, the building owner first applies for listing, then a professional appraisal firm evaluates the value of the building, and then selects the building through a listing deliberation committee composed of external experts. After that, if a securities declaration is submitted and the financial authorities give the final approval, the building information is disclosed and the public offering is carried out. After the subscription, the building is listed and DApps are issued.

CEO Yee said, “Real estate is the underlying asset and transactions are made like stocks. It can be viewed as a product that combines the stability of real estate with the simplicity of stocks. Yes. The relevant laws also follow the Capital Markets Act,” he said.

CEO Ye said that the ultimate goal is to make it easy for anyone to invest in a building. He said, “About 20 to 30 trillion won of building transactions are conducted annually in Korea, and most of the transactions are made mainly by high-income individuals and institutions,” he said. .

astronaut. housekeeper (宇), homeowner (宙), and person (人). The symbolism of a house in Korea is unique. The house, which should be a space for living and resting, is intertwined with financial technology at some point, and if you can’t get it in your hand, you will feel a sense of relative deprivation. Through ‘Song-ryeol Lee’s Astronaut’, we hear stories related to real estate through people. [편집자주]

Written and photo = Lee Song-ryeol, reporter at Hankyung.com yisr0203@hankyung.com
Video = Yoo Chae-young, reporter at Hankyung.com ycycy@hankyung.com