Real estate commentary
Types of real estate investment
There are four main types of real estate investment
・Second-hand apartment
・ Newly built condominium
・Second-hand condominium
The characteristics of each are that while the yield of newly built investment properties tends to be lower than that of second-hand properties, the risk of vacancies due to undecided tenants and the risk of repairs being required due to defects in the buildings are higher in second-hand properties. less. On the other hand, second-hand properties have a higher yield, but the risk of vacancies and buildings also increases. Furthermore, in the case of second-hand apartments (especially wooden ones), it is possible to reduce income tax and resident tax due to the short depreciation period.
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In the story, we use a newly built condominium.
Cost
Maintenance costs for condominiums
Administration fee: 15,000 to 20,000 yen per month
Repair costs: 10,000 to 15,000 yen per month
Property tax: about 100,000 to 150,000 yen each year
Insurance premium: Approximately 5,000 yen to 10,000 yen annually (10 years payment)
Parking lot/bicycle parking fee: Approximately 5,000 yen to 30,000 yen per month (zero if there is no car)
It costs about 465,000 yen to 940,000 yen each year in total.
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