Case 2: Invest in an Apartment

Let's take a look at the second real estate investment case, which is a single wooden apartment building with four units in Kyoto city, ownership registered in the names of both parents and children, who are living in Hong Kong. 

The investors are not residents in Japan, the registered owners are parents and children, and the registered address is Hong Kong. The investment target is a wooden apartment, 4 units, and an old apartment that was located on land that cannot be re-built.

This time, the investment is to buy an existing apartment at a cheap price, no tenants, renovate it, operate it as a rental, and sell it for an exit. The real estate purchase amount is 10 million yen or less, renovation costs are about 7 million yen, and rental income is about 1.6 million yen per year.

Real estate prices were very low, as the property was in such disrepair condition that it needed major renovations, was before land prices soared, and could pn the not re-buildable land. Since investors could not come to Kyoto at the time of contract or settlement, they delegated to an agent and completed the transaction.

For the renovation, we prepared a room with a unit bath for the university students and a room with a shower room only. Initially we did not install furniture, but now we are operating as a rental with furniture as furnished apartment. For the renovation, we asked a local contractor through the management company, and the management company confirmed the progress of the construction and detailed specifications.

For rent management, we have been promoting recruitment centered on companies that are strong in renting students, and we have achieved almost full occupancy management. When international students rent a room, they prefer furnished rooms, so there are refrigerators, washing machines, beds, desks, and chairs. The internet is also contracted with the apartment, so it is possible to use it immediately after moving in.

Currently we are both renting and selling an apartment at same time. 
Since the investor has an account of Bank of China opened in Japan, the rent is remitted monthly to the Japanese account.

We are executing an exit strategy while investing and renting the property, including renovations.
For renovations, we have English-speaking contractors and architect partners, so please contact us if you are interested.

Case 2: Gross yield approx. 10%, Net yield approx. 8.87%
*Management fee, fire insurance and property annual fixed asset tax included