'1 Billion Lotto' One Bailey... Be Cautious with 'Bold Subscription'

224 Households for General Sale Subscription Start
Complex Where Interim Payment Loans Are Not Possible
70~80% of Sale Price Must Be Funded

[Asia Economy Reporter Kim Hyemin] Raemian One Bailey in Banpo-dong, Seocho-gu, Seoul, which is attracting attention as a lottery worth around 1 billion KRW, started its subscription schedule on the 17th.

Amid concerns that it will be a feast for cash-rich buyers who cannot get interim payment loans, some are showing a bold subscription trend of aiming to win first even if they delay interim payments. However, experts advised careful financial planning, warning that reckless attempts could result in losing a large deposit.

Raemian One Bailey, which began subscriptions for 224 general sale units from this day, is called the "Gangnam lottery apartment" as a price difference of about 1 billion KRW is expected upon winning. The sale price for a 59㎡ unit in One Bailey is set at a maximum of 1.425 billion KRW, while the adjacent Acro River Park has actual transaction prices of 2.6 billion KRW for the same area. The jeonse (long-term deposit lease) price alone reaches 1.5 to 1.7 billion KRW, leading to talk that the sale price can be covered by leasing out the jeonse.

Experts expect the cutoff score for winning the Raemian One Bailey through the point system to be in the 70s. Yeokyunghee, Senior Researcher at Real Estate 114, predicted, "The subscription fever will be high due to preference for a single smart home and high price gains."

The problem is that the sale price exceeds 900 million KRW, making interim payment loans impossible. Because of this, some applicants are showing a tendency to delay interim payments as much as possible and cover the shortfall by leasing out the jeonse upon moving in. They plan to use the regulation that allows contract cancellation not to occur even if up to two out of six interim payments are delayed. In this case, it is calculated that holding only 40% of the sale price, including the 20% deposit, is enough to cover the sale price.

However, experts point out that this is a considerably risky method. Senior Researcher Ye said, "Since you have to consider delayed interest, acquisition and registration taxes, and paid options when planning funds, it is safe to have at least 70-80% of the sale price in funds."

Currently, the delayed interest rate for interim payments of Raemian One Bailey is about 5.88%. However, the sales office explained that if the base interest rate of commercial banks rises, additional interest may be added at the time of actual payment, increasing the rate. An industry official said, "If the contract is canceled, not only the deposit but also the subscription savings account will be lost," adding, "You should also consider preparing a fund procurement plan."

This content was produced with the assistance of AI translation services.