Return on investment of 30% investor
In this page, I introduce a real estate investor in Japan.
Built in year of 1978.
11 minutes walk from the nearest station.
Lot area : 119 ㎡
Room area : １F：99 ㎡
This house shares a part of wall.
So, he cannot rebuild this house.
He bought this house at 1.1 million yen at public auction in July 2012.
Floor of washroom was soft.
So, he remove the floor.
It turned out that wood beneath the floor was rotten.
Removed the wall and floor to replace water pipe.
Then, he repaired balcony.
He performed a part of repair by himself and also hired a local carpenter.
It took 2 months to complete it and it cost about 320,000 yen.
You can find more details of his repair with picture.
He finished these remodel at October 4th and found a renter in October 13th 2012.
Monthly rental fee was 38,000 yen.
There was not key money and gift money.
The renter kept a dog.
Actually, the amount of rental fee is very cheap.
You will think that you are not interested in this kind of small money.
So, if you want to sustain your life just by investment, you can purchase several properties.
In the case of his house, he spent about 320,000 yen to remodel it.
Purchase price : 1,100,000 yen.
Other cost : 52,200 yen.
Property tax : 7,000 yen.
So, yield on investment is as below.
So, 38,000 yen × 12 months / ( 1,100,000 yen + 320,000 yen + 52,200 yen + 7,000 yen ) × 100 = 30 %
Then, he received a bill of acquisition tax.
The amount was 31,100 yen.
In end of October, 2013, his renter decided to leave the room.
Unfortunately, period of lease contract was short.
In November, 2013, he found a next renter. This time, amount of monthly rental fee was 41,000 yen.
This renter keeps 2 dogs.
He changed key.
Now, this renter is living in this house.