I am worrying about whether I can find a resident or not
The key point of property investment is based on supply and demand. The current situation of Tokyo, especially main cities have higher demand than supply. The current situation will continue to last due to following reasons:
- Reason 1: avoid living in countryside
- Explaination 1: population in the city continue to increase
- Reason 2: land price polarized
- Explaination 2: land price is 3 times higher in the city. It is not rare to have 20% or 30% higher land price than posted price. Let’s use the parking lot that connected Shibuya park and Tokyu department, posted price was 7.75 million Japanese yen per Grammage; the actually sold price was 22 million per Grammage, which is 3 times the posted price. This phenomenon will continue to last. In addtion, it is being said that land for mansion should locate within 30km from city, otherwise will be less valuable.
- Reason 3: 1 out of every 4 people are single and rent a single apartment.
- Explaination 3: According to the statistic, population of Tokyo 23 cities reached 8.95 million in 2011.
Among them, 2.14 million people are single and many of them are young salaryman. However, only 1.13 million apartment which are less than 30 square metre are for rent. That is to say, mansion supplyfor singles are not enough.
- Reason 4: increase demand from SOHO
- Explaination 4: Definition of SOHO is work at home and work near home. Now is currently defined as company that as less than 10 employee. There are about 5 million mansion that are being used as SOHO office. Therefore demand is not satisfied at all.
- Reason 5: Serious lack of supply from apartment rental business.
- Explaination 5: For 8 years, people have changed their investment purpose from capital gains during bubble period to rent income as their main purpose. According to currently market, even 200 years cannot satisfy the current market of 2.14 million singles. We can predict that the supply and demand for singles will be overwhelming.
Will the price of mansion goes down?
Price of mansion depends on land and construction cost. Price for homestead and other lands is polarized.
Now is the perfect timing for investment, as construction cost goes up. Compared to last year, construciton costs went up 10%, some places even 20%. One of the reason that construction cost went up is because construction contractor requests certain amount of profit from the construction.
Is the procedure for resident recruit complicted?
If owner wish to aviod complicated procedure, owner can assign us to be your agent. We will help you with rent collection, resident recruitment, sign contract, contract renewal, and managemnet.
We can also help you with building repair.
We have a complete support system to support you.
If Periodically maintenance is done, building will be able to last for 90 years.
Many factors including wind, rain, air, exhaust pipe will neutralize concrete. Reinforce parts and steel frame will gradually rusted.
In general, the speed of concrete neutralization is 1cm per 30 years. According to the law, concrete must be thicker than 3cm. Theoretically, 30×3 therefore there is 90 years guaranteed.
If the building got old, would the rent go down?
Property that is in Tokyo 23 cities, within 10 minutes walking distance, then even if the building got old rent will not go down.
What is the condition of low vacancy rate?
Popular area is the first condition.
One room mansion’s main target is young generation, students, and office worker.
Therefore when purchase a property, we must choose a popular place that fits this group.
How to solve long period of vacancy problem?
You do not need to get anxious about vacancy problem. As long as you find a good location with reasonable rent, you do not need to worry about no one renting your place.
Most students demand for one room mansion, therefore the longest rental period is proximately 4 years.
As the commodity price goes up, you can reset your rental price.
What if the real estate company where I purchased property got bankrupted?
Your proprety is still there.
Even if the real estate company where your purchased your property got bankrupted, your property still belongs to you.
What kind of people will buy it?
Unlike bubble period, only high income family are able to purchase real estate.
Nowadays, salaryman and civil servant are able to purchase real estate. Many of them choose property that has high durability and value property to gain rent income.
Apartment maintenance fee?
It depends on the grade of apartment.
Generally, there will be outer wall repairation (once per 12 years), pipe repairment (once per 25 years, Polybutene tube is once per 50 years, roof waterproof repairment (once per 12 years).
Because the quality of water provider increased, therefore there will not be much repariment necessary.
Above repairation will be done by using the maintainace fee provided by owners.
There is a long term repairation plan, therefore you do not need to worry about sudden huge cost.
Will apartment price go down?
Choose a property that has high rental demand will decrease this possibility.
High demanding property even the building aged, the rent will not go down. In the other hand, low demanding property the price will go down.
Therefore it is important to see whether this apartment is highly demanded or not.
Our company take this into one of our important consideration, therefore property that we provide are all locating at premium location.