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Average return on real estate investment in Japan

ROI Nihon Fudosan

This may be ordinary Return on Investment of real estate investment in Japan

I do not have any intention to try to find purchaser of this real estate at all.

But when you start real estate renting out business in Japan or you look for real estate for rent, it may be good that you know market price of real estate.

I have received this flyer today in my mailbox.

Sales price is 11.8 million yen

3 minutes walk from the nearest station.

5 minutes walk from my office.

16.5 square meters room.

built in 1974.
(“Amount of rental fee will decrease depending on age of building“)

Apartment management fee ( Kanrihi = 管理費 ) and fund for repair 12,000 yen per a month.
(owner needs to pay these amount)

There is a renter in this room. Monthly rental fee is 67500 yen.

Monthly net profit 55500 yen.

55500 yen × 12 months / 11.8 million yen = 0.056.

So, net yield will be 5.6 %.

As of now, this return on investment will be average.

I just post this information for your reference.

Maybe, you can compare this net yield with investment in your home country.

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