South Korea ranks 11th in the world by economic volume. Attracting foreign investors is an important direction for the country’s development. In order to increase investment in real estate in South Korea, there is a program to obtain a residence permit by foreign citizens in exchange for the purchase of housing.
Is it profitable to invest in real estate in South Korea?
The program is aimed at the development of the real estate market of the country and operates for certain regions. For the first time, such a scheme to attract investment was launched for Jeju Island, which is a tourist area, now the list of settlements has expanded to 6.
The State Program has its own peculiarities which must be fulfilled.
A foreign investor must invest at least $445 thousand in a construction project in the designated zones. This amount is not exorbitant, in other countries it can be much more. Receiving a residence permit in exchange for real estate assumes that the acquired housing will not be sold within 5 years. The residence permit gives the investor the right to conduct business in South Korea, to work, to get medical insurance and the entire social package, as the population of the republic.
It is not necessary to live in the region where the property is located, but the migration service should be informed about the change of location.
If you do not have the necessary amount for buying real estate in South Korea, there is an option of obtaining a business visa, which is issued for 1 or 3 years. Each such case is considered in a separate order. For persons over 55 the amount of the investment can be reduced by 50%.
It would also be beneficial to purchase housing in the country for rent. If you invest in the construction of an object at the excavation stage, you can resell it much more expensively in the future or leave it for a stable income. There are no restrictions for foreigners to buy real estate in Korea, the only condition is a one-time payment.
The cost of apartments here starts from $200 thousand. For non-citizens who work in the country and have visas for a long time, it is possible to arrange a mortgage. The down payment in this case is 40% of the cost of the apartment.
In South Korea, you can buy real estate without fear at the construction stage. The progress of construction is strictly monitored by regulatory authorities, all documentation is checked, which eliminates the risk of freezing the object or bad faith on the part of the developer. The difference between buying a house at the excavation stage and a commissioned house is about $20,000.