Anyone have firsthand experience with this, or a good reference for information? Would appreciate thanks.
Buying (rental) property in Tokyo
Although maybe European algorithm will work in Tokyo as well: I would advise short term rentals as it promises you decent returns - about 5-7% yields. Hiring a management company helps to avoid problems with finding new tenants. Its service costs 20−25% of the total rental revenue but the expenses will be rewarded with higher occupancy rates. So you need to choose a one-bedroom apartment somewhere in the city center popular with tourists. Check this article https://tranio.com/traniopedia/tips/high...t_to_know/
I have one in Shinjuku. It just came available for rent again after 7 years and we had a hard time to fill it. We wanted more rent than 7 years ago, obviously, but the rental market in Tokyo is not that decent.
For the most part, people are FAR better off renting, especially considering more places are doing away with key money.
I even suggested doing away with key money, but in the end the management company found a guy so its occupied again. The key money essentially pays for the renovations, having the place empty during this time, changing locks, etc. So its not bad, but still an old world hangover that kicks the shit out of young people.
Mortgages are cheap in Japan, which is good because real estate doesn't seem to go up. This place is covered by rent, which is essential, but cash flow is not that much. I don't even make it back to Japan much these days, but considering I could rent a place in Daikanyama for $2k, and it would cost a million to buy, its not worth it.
For the most part, people are FAR better off renting, especially considering more places are doing away with key money.
I even suggested doing away with key money, but in the end the management company found a guy so its occupied again. The key money essentially pays for the renovations, having the place empty during this time, changing locks, etc. So its not bad, but still an old world hangover that kicks the shit out of young people.
Mortgages are cheap in Japan, which is good because real estate doesn't seem to go up. This place is covered by rent, which is essential, but cash flow is not that much. I don't even make it back to Japan much these days, but considering I could rent a place in Daikanyama for $2k, and it would cost a million to buy, its not worth it.
A big factor here is demographics. As Japan is very conservative concerning immigration, Japanese population is expected to shrink by 10% within the next 25 years, likely with negative effects on property prices and rent. So location seems even more important than elsewhere.
Quote: (09-07-2016 11:36 AM)Laner Wrote:
I have one in Shinjuku. It just came available for rent again after 7 years and we had a hard time to fill it. We wanted more rent than 7 years ago, obviously, but the rental market in Tokyo is not that decent.
For the most part, people are FAR better off renting, especially considering more places are doing away with key money.
I even suggested doing away with key money, but in the end the management company found a guy so its occupied again. The key money essentially pays for the renovations, having the place empty during this time, changing locks, etc. So its not bad, but still an old world hangover that kicks the shit out of young people.
Mortgages are cheap in Japan, which is good because real estate doesn't seem to go up. This place is covered by rent, which is essential, but cash flow is not that much. I don't even make it back to Japan much these days, but considering I could rent a place in Daikanyama for $2k, and it would cost a million to buy, its not worth it.
Thanks for the info. I was thinking specifically of getting a place to rent on AirBnB to foreigners. I live in central Tokyo so managing it wouldn't be an issue.
Tourism keeps growing, and especially with the upcoming Olympics it seems like a good time to get in. I've had both friends and family come visit here and stay in places off AirBnB that weren't that great. Feels like there's opportunity if you can find the right place/location.
This is where the growth will be, you are right.
I did suggest to family that we should go the AirBnB route, but in the end having a long term renter is more hassle free.
I always check out the short term, foreigner friendly places in Tokyo, especially in the Ropponggi- Hiro-o areas. Keep them close to the embassies and foreign friendly locations it shouldn't be too hard to keep the place going.
The downside is that AirBnB is actually very cheap in Tokyo. Perhaps the best value I have ever seen. This is something to think about as well. That might be an indication that Tokyo is in a prime time for a sudden rise in rental rates. Tokyo has certainly been under the radar for quite a while, and with so much focus having been on China lately, I think Tokyo and Seoul will have a little upswing in foreign investment.
As Europe starts to become headlines of fire and crime, I think Asia, with its very high levels of personal safety and harsh immigration policy, will have to pick up some of the slack which means they are in a good position to take only the best and brightest.
I did suggest to family that we should go the AirBnB route, but in the end having a long term renter is more hassle free.
I always check out the short term, foreigner friendly places in Tokyo, especially in the Ropponggi- Hiro-o areas. Keep them close to the embassies and foreign friendly locations it shouldn't be too hard to keep the place going.
The downside is that AirBnB is actually very cheap in Tokyo. Perhaps the best value I have ever seen. This is something to think about as well. That might be an indication that Tokyo is in a prime time for a sudden rise in rental rates. Tokyo has certainly been under the radar for quite a while, and with so much focus having been on China lately, I think Tokyo and Seoul will have a little upswing in foreign investment.
As Europe starts to become headlines of fire and crime, I think Asia, with its very high levels of personal safety and harsh immigration policy, will have to pick up some of the slack which means they are in a good position to take only the best and brightest.
If you don't mind me asking, what kind of mortgage/payment did you have on that place? Currently I'm paying just over 100,000 yen a month for my place that is centrally located.
I have a rough budget of 10 million yen to spend, though could definitely go higher. By doing some basic searches and reading articles like this I'm confident I can find something decent that would appeal to travelers.
A big advantage I see is that areas like Sanya/Okubo/Kinshicho/etc are undesirable and 'dangerous' for Japanese, but not so much for foreigners. The majority of people who come here have very little concept of Tokyo outside of Shibuya, Roppongi and the main spots. So I think a big selling point would be somewhere in a good location even if the neighborhood is not so great.
I have a rough budget of 10 million yen to spend, though could definitely go higher. By doing some basic searches and reading articles like this I'm confident I can find something decent that would appeal to travelers.
A big advantage I see is that areas like Sanya/Okubo/Kinshicho/etc are undesirable and 'dangerous' for Japanese, but not so much for foreigners. The majority of people who come here have very little concept of Tokyo outside of Shibuya, Roppongi and the main spots. So I think a big selling point would be somewhere in a good location even if the neighborhood is not so great.
How is the paperwork to buy real estate in Japan as a foreigner?
From my limited experience, doing anything as a Gaijin in Japan is an obstacle race, even the simplest of tasks.
Just something as trivial as opening a bank account becomes a mental sudokku, I can't imagine buying an apartment is anything easy?
From my limited experience, doing anything as a Gaijin in Japan is an obstacle race, even the simplest of tasks.
Just something as trivial as opening a bank account becomes a mental sudokku, I can't imagine buying an apartment is anything easy?
Be very careful about trying to run AirBNB in Tokyo, the laws got a lot more strict.
You can only rent it out half the year, and some wards won't give permission to let you do it at all, so make sure you have everything planned out well in advance before buying the property.
You can only rent it out half the year, and some wards won't give permission to let you do it at all, so make sure you have everything planned out well in advance before buying the property.
the best ROI on the real estate market that I know off is in Kiev with short term rentals you can rent a $ 40, 000 flat $35 a night
Quote: (12-11-2018 10:21 AM)SamuelBRoberts Wrote:
Be very careful about trying to run AirBNB in Tokyo, the laws got a lot more strict.
You can only rent it out half the year, and some wards won't give permission to let you do it at all, so make sure you have everything planned out well in advance before buying the property.
Yeah I didn't see the AirBnB rules coming in so fast, so in hindsight the property manager made the right call to rent it out long term.
Any idea how the AirBnB market is in Tokyo now?
« Next Oldest | Next Newest »
Users browsing this thread: 1 Guest(s)