High return real estate investment in Japan
Here, I want to introduce a female real estate investor who owns many high yield real estate in Japan.
Before you start real estate investment, you need to know a lot of matters.
If you read through this page, you can learn a lot of valuable information.
She mainly purchases very cheap property in Japan.
Prices of most of them are below 3 million yen.
She likes to purchase a very old or / and shabby property.
1．The value will never decrease after she purchases it.
Her purchasing price will be the bottom price.
If she repairs some defects, price of house will increase easily.
In the case there is a hole on floor and wall, doors are broken, , tatami mat is rotten, she repairs these defects.
Situation at the time of her purchase is terrible, so with small repair condition of property will improve.
She thinks that if she purchases this kind of property at very low price and rents out at low rental fee, she can find renters easily.
At first, she tried to purchase a property via public auction.
She searched for suitable real estate at website of court house and found some properties.
She visited several properties on the spot and bid.
But, she could not make successful bid.
One day, her familiar realtor introduced her a very cheap ratty terrace house.
Inside this house, there was not a floor.
Unlike other persons, she decided to purchase this house.
Seller’s offering price was 5.8 million yen, she demanded to purchase it at 3.5 million yen.
Seller and she negotiated with each other and agreed to transact at 4 million yen.
She knew if she could find a renter, yield on investment would be 49%.
But this house was located in City with decreasing population, decline of companies, decline of economic situation.
In this terrace house, there was only 1 tenant out of 6 rooms.
When she purchased this apartment, the amount of rental fee with seller was too cheap.
So, she negotiated with current renter and she evicted the renter.
After that, she started to reform all rooms.
She contacted with a local carpenter and ordered him following matters.
1 Convert all Japanese rooms into western style rooms.
2 Equip all rooms with white wall paper .
3 Make space for laundry machine at kitchen.
4 Replace all old kitchen with new kitchen.
5 Use white CUSHIONED FLOOR MATERIAL at floor of dining kitchen.
6 Paint all doors with sky blue.
７ Replace all intercom.
８ Replace floor of lavatory.
She bought necessary CUSHIONED FLOOR and wall paper by herself to save necessary cost.
( She found it via internet. )
Then, she ordered at 1.2 million yen in total to local carpenter.
This was incredibly low price.