Since we received an inquiry from overseas today, we will briefly explain the profits of making an investment. Since the budget limit was about 8.5 million yen, we presented the following cases to our customers as a case study. Detom-1 Shijo Omiya PartⅡ https://realestate-kyoto.com/?post_type=fudo&p=7007 Sales Price 5,800,000 yen Total cost for purchase (roughly) 6,330,000 yen*¹ Annual rent 492,000 yen Monthly Rent 41,000 yen Monthly Total Cost 10,250 yen*² monthly cost-1 4,725 yen monthly cost-2 5,500 yen*³ *property management cost Monthly Income 30,750 yen Annual Rent Income 369,000 yen *¹ Total cost include ownership registration fee, ownership registration tax, part of fixed asset tax, agency fee and acquisition tax *² Total cost include maintenance fee and repair reserve fund and terrace using fee *³ Case of cost for asking full management service When you purchase a leased property in Japan, it is often called an Owner Change property. Unfortunately, if there is lessee, we cannot look inside the room. Therefore, we will select investment properties based on the exterior of the building, the location of the room, and other details on the paper. If the building is rented, it is also necessary to check whether the rent is too high compared to the surrounding market, or if it becomes a vacant house, it is easy to find the next occupant. It should be noted that if the rent is too high, even if the current yield is good, the rent may become unoccupied and you may not be able to get the rent you expected. When choosing a property, it is necessary to confirm whether it is near the station, near the university, a popular area, the direction of the veranda, the number of floors, or whether the floor plan is easy to use.
We can also discuss rental demand, so please contact us if you would like to invest from a cheap real estate first. This is a continuation of a story from the other day, a progress report on the tenant leaving. The property under management has been vacated and the construction of the skeleton handover has begun. Since the restaurant was originally operated nearly 40 years, no one has been able to grasp the original shape of the building. Therefore, during the demolition process, we had to witness the demolition and confirm which parts of the building should be left intact and which parts should be removed. The important thing to note this time is that the wall that separates the store from the next door to the west will remain as it is, and since there is a store underneath, we will have the flooring demolished without any significant force applied. We also decided to have the flooring removed to the lowest level. The shop next door was operating with only one wall, and since the shop is in the basement, there was a risk that the floor would fall out if a strong impact was applied, so we had to do this by hand. The walls and floors will be demolished until the existing walls are removed and the original frame area is visible. It's hard to distinguish old, unused gas pipes,water pipes and electrical wiring, etc. that had been used up until now. Also, the lighting in the common area was linked to the next store, was 3 points system used by each restaurants, but with the demolition of the building, the light switch function became unusable. Therefore, we hurriedly had an electrician come and reconnect the wires. After all, it is an old building and it has been renovated many times, so it is not easy to do so. A meeting is held at the site with the demolition company to discuss how far the walls need to be removed, the dismantling of the trays and the removal of the walls, etc., and then when the work is nearing completion, we confirm that we will be there again.
It is time to do these things so that the lessee can be found quickly so that the next lessor's business will be successful. On the next occasion, we will report the clean condition after removal. Today, we would like to introduce a case we had the other day about caring for the garden. We manage the owner's second house and visit the local patrol once a month. At that time, we also check the postal items and visually check the outside of the building. As an option, we also perform ventilation work in the building, kitchen, toilets, washrooms, etc. to prevent the pipes from drying out and causing a bad odor to spread inside the building. Meanwhile, the other day, when we were patrolling a building that manages a vacation house, we found that the planting in the garden had grown greatly and it was crossing the border with the neighboring land. Also, it has not been kept in good condition for a long time, the plants interfered with the sunlight, and there were some places where the light could not reach. As shown in the photo, there were some parts such as pine trees that were partially dead. It's okay to leave it for a few months, but it's still annoying to the neighboring land, and if the condition of the plants is not improved, the garden will die more and more. Therefore, this time we asked the gardener to check the current situation and gave us advice on what kind of maintenance is good. According to the contents, gardener said that it is better to perform basic pruning and light pruning twice a year. Since deciduous coniferous trees are resistant to cold, it is possible to perform basic pruning during the winter because the timing varies depending on the planting growing in the garden. And in order to get a good shape in a balanced manner, the gardener said that the proper time for light pruning is better from summer to autumn. Pruning time for coniferous tree
In addition, the gardener said that it is better to decide the time for basic pruning according to the type of planting in the garden. But for the light pruning work, it should be done at the convenience of the customer. For example, if the owner visits Japan during the autumn leaves change and asks them to check the condition of the garden, it would be good to have it around October. If the owner visits Japan during the cherry blossom season, it is better to take care of it just before coming to Japan, as it will make the owner happy. This time, care was taken for a long time, so we asked them to work on cutting unnecessary planting too. The planting in the garden has been refreshed, and there is no crossing of borders next to it. Also, the kind of planting that was not found in the original garden was cut and is in a very beautiful condition. According to the gardener, this time there is a block fence at the boundary, so when the owner looked outside from the room, the gardener designed it so that the block fence would be hidden just by planting. Since there is no line of sight from the window of the neighbor's house, leave the upper part empty to some extent and it will become warmer and the volume will come out along with the cultivation of the planting.
We would like the owner to come to Japan right now to check it out and see the beautiful new garden, but we would like them to come to Japan in the fall when things are more settled. We can refer you to these gardeners, so if you would like to take care of your garden, please contact us. When brokering real estate for leasing or sale, real estate agents always confirm the disaster information about the location of the property. This is stipulated by the Building Lots and Buildings Transaction Business Law, and it is necessary to present the disaster information on the location of the building to the lessee/buyer. Kyoto Prefecture has a dedicated multi-hazard information provision system and we can find out more at this site. Kyoto Prefecture Multi-Hazard Information Providing System http://multi-hazard-map.pref.kyoto.jp/top/top.asp Here you can research floods, earthquakes and tsunamis, landslides, and disaster prevention information. Flooding can be surveyed for inundation due to floods, inundation areas such as house collapses, rainwater runoff, and storm surge, as well as inundation areas due to reservoir failures. In the case of Kyoto, the Kamo and Katsura rivers may be flooded, and approximate locations in the city are within the scope of the flooding. In addition, the earthquake and tsunami information can be used to investigate the assumed maximum seismic intensity of the earthquake and the Nankai megathrust earthquake. Japan is an earthquake-prone country, with a certain number of earthquakes occurring every year. There have been 25 earthquakes of intensity 1 or higher in Kyoto in the past year. Therefore, earthquakes are a very common occurrence when living in Japan. For sediment disaster information, it is possible to survey the sediment disaster caution area and the sediment disaster special caution area. Kyoto City is surrounded by mountains, and the area near the mountains is roughly within the sediment disaster warning area. This is also a known fact that Kyoto is surrounded by nature. For disaster prevention information, you can also check the Fukui nuclear power plant, evacuation site, and AED installation site. In the case of a real estate transaction, the following materials will be attached to provide disaster prevention information and evacuation site information at the location. Flood inundation expected area (estimated maximum) Inundation depth less than 0.5m
Inundation expected area: Inundation depth less than 0.5m Seismic intensity distribution map (Active fault) Seismic intensity upper 6 on the Japanese scale of seven Seismic intensity distribution map (Nankai Trough), seismic intensity of lower 6 on the Japanese scale of seven Liquefaction risk prediction map (active fault) Liquefaction risk is small 27.1 meters above sea level Evacuation site information This is also available to the general public, so please check the land you are interested in.
Today, we would like to explain the changes in the number of permits for Ryokan/Hotel industries and Private Lodging(AirBnb) in Kyoto, which we accidentally investigated.
Currently, there are no foreign tourists due to the COVID-19. The number of foreign tourists visiting Japan in April, which had been announced by the Japan National Tourism Organization (JNTO), decreased by 99.9% compared to the same month last year, and the total number of foreign guests staying in Kyoto in April decreased by 99.7% compared to last year. Even if it includes domestic customers, it is a 95.7% decrease, which is a difficult situation. It became a popular travel city until last year, and many hotels were constructed or converted in parallel. We will share information together to understand the current state of such buildings. First of all, the ryokan business method is divided into the hotel business, the ryokan business, the budget hotel business, and the lodging business. Please check with the following criteria.
Structural facility standards for the budget hotel business and the hotel/ryokan business
The following is the transition data for the number of permitted facilities such as the number of hotels and guest rooms in Kyoto City.
In addition, the following is the data on the status of correspondence with the registration reception desk of the private lodging business.
On the other hand, there was data on the number of consultations for reporting/opening the private lodgings.
In fact, in addition to the above data, there were surveys of facilities suspected of unauthorized business. If you are worried about such numbers, please check once.
Let's continue with yesterday's explanation. First, let's talk about each type and its characteristics. Metal Tiles
Slate Tiles
Clay Tiles
"How to decide on roofing tiles" a big change between "renovation" and "new construction".
If you're remodeling, choose "within weight limits". The lighter the roof, the better the building's earthquake resistance, so one correct answer is that "lighter roof tiles are better". In the case of remodeling where the structure of the building itself cannot be changed, making the roof heavier than before construction will lead to weakening against earthquakes. It is safe to choose roofing materials that are the same or lighter than before, so that a building that has been aged for a long time and has deteriorated over time will not be further weakened by reforming. After that, please decide the roofing material by paying attention to functions such as service life and heat insulation. For new construction/rebuilding, select the roof by design rather than weight On the other hand, the weight of roof tiles is less of an issue for “new” or “rebuild”. This is because the structural design of the building should be designed according to the weight of the roof tile you want to use. If you look at the news of recent disasters, you often think that "the roof should be light because of its earthquake resistance". But you don't need to choose roof that is lighter than you need, as long as the structure of your building can support it. When building a new building or rebuilding it, we think it's good to prioritize functions other than earthquake resistance and design, and choose freely. There is no roof tile that has all the functions, so please consider what you need and choose the roof tile you like. We will compare the four axes of “durability”, “cost”, “design” and “anti-earthquake/typhoon”, and introduce the optimum roof tiles and their reasons.
Select "Clay roof tiles" if "durability" is important "I want to make a house where people can live with peace of mind for at least 30 years." "The initial cost can be high, so I want to keep future costs as low as possible." Clay (pottery) roof tiles are most recommended for such people. Ceramic tiles are pottery, so they rarely deteriorate with age. In addition, it has a wide variety of colors and shapes, and it has little color fading. However, please note that changing the roof from other roofing materials is not recommended due to its earthquake resistance. Select "Slate roof tiles" if "cost" is important Slate roof tiles are recommended for those who want to prioritize cost above all. Just because it's cheap doesn't mean it's unreliable. In addition to being inexpensive, partial repairs and replacements are also possible, and there are many contractors who carry out construction. It is safe even in an emergency. Select "Galvalume steel plate" if "design" is important If you want an urban house that designability and emphasizes design, a metal roof made of "galvalume steel sheet" is recommended. You may find that the Galvalume steel roof looks like a tin roof from a long time ago and looks cheap. However, because it gives a simple and sharp impression, it looks well with an urban modern house. In particular, it goes well with box-type houses, which have become very fashionable these days, and houses with a simple exterior with a one-sided roof. It is a roofing material often used by atelier architects. On the other hand, if you prefer a traditional and solid image, "clay roof tiles/cement roof tiles" will be your choice. Select "Galvalume steel plate" or "Slate" if "earthquake/typhoon" is important If both earthquake resistance and wind resistance can be achieved at the same time, we recommend using a metal or slate roof made of "galvalume steel sheet". In the case of remodeling, using heavy Japanese tiles may make the building vulnerable to earthquakes, so it is better to avoid it. In addition, Japanese tiles and sheet-shaped asphalt single tiles, in which each tile is divided into smaller pieces, pose a risk of slippage, even if they are not blown away. The above are the criteria for selecting roofing materials and the advantages and disadvantages of each roofing material. If you are considering renovating, please feel free to contact us. We had a meeting today because the tenant of the property we are managing will move out at the end of the month. This is an Okonomiyaki restaurant that has been operating for over 40 years. An elderly lady was operating by herself, but the restaurant was open from midnight until 5:00 and 6:00. It's a real Shin'ya Shokudō, known in English as Midnight Diner. At the beginning of this year, she was a little sick and had to take a break. Then the coronavirus attacked there, and due to the self-restraint of going out and the request of self-restraint of business, it became impossible to foresee the future, then she decided to shut down her business. This time, with the cancellation of the lease agreement, the procedure will basically follow the terms of the contract and the delivery conditions at the time of cancellation. Since it has been operating for over 40 years, neither the current owner nor the management company can understand the initial state. The points to keep in mind this time were the following. 1. 2 months notice of cancellation 2. When the lessee hands over the property, the lessor refunds the deposit 3. The lessee shall make a skeleton at his/her own expense and hand it over to the lessor. When we were first consulted about cancellation, we followed the prescribed procedure and received a written notice of cancellation and the tenant's signature. We were notified of the cancellation by phone, but it is necessary to make sure to put it in writing, otherwise it will be said or unsaid afterwards.
The lease agreement this time was an agreement using the system called Guarantee Money and Non-refundable Restoration Fee. Therefore, we will calculate the security deposit to be refunded according to the number of years of the contract and refund it after receiving the delivery of the property. The most difficult part of the process is the passing the property by the skeleton state. The condition of the skeleton is often the case when renting a property for commercial use, meaning that everything will be removed. The removal of fixtures, walls, floors, ceilings, etc. installed by each tenant until the building's structure can be seen is called the handing over of a skeleton. Therefore, we had a meeting today with the lessee and the construction company, and decided the scheduled construction date and the confirmation date of the progress. After all, it is not possible to confirm how far the skeleton can be made without removing the stuff, so it is necessary to confirm in the middle. Possibly, it may be sharing the block fence with the next store, so ask them to return to the skeleton state while watching the progress. The above is today's meeting and the procedure for cancellation. As a management company, we will need to confirm that the building has been vacated, and prepare for repairs, such as recruiting new tenants and waterproofing the building so that it can be used by the next tenant. Since this is an earning property, we will be making detailed adjustments to obtain rental income as soon as possible, at what rent and under what conditions, while considering the cost effectiveness of the property. Today, we will talk about the information on the building registration certificate. The first is a copy of the registration certificate of a wooden 2-story building, and the second is an explanation of the registration certificate of a condominium. First of all, it is a case of a two-story wooden detached house. The content is similar to the land, only the content of the title part is different. ① Location: Location of the building; xxx Town, xxx ward, Kyoto City ② Housing number: #xxx ②-① type of building: residential, apartment, dormitory, store, etc. ②-② structure: structure of building, type of roof (shape of roof) and stories of building ②-③ floor size: floor size of each floor, in ㎡ unit ③ Right Department (Section A) (matters related to ownership): Order of registration, purpose of registration, date of receipt, right holder and other matters. (Reason for registration, owner's address, owner's name) *If there is an underline, the content has been changed and the registration has been deleted. As mentioned above, there are many items that are similar to land, and the Section A (matters related to ownership) and Section B (Matters related to rights other than ownership) of the Rights Department have the same contents. Now, let's check the building registration certificate of the apartment, even though it is the registration certificate of the same building. In the case of a condominium, unlike a detached house, there is an indication of a single building, an indication of an exclusive building, and a further indication of the right of site. Please see below.
④ The house number of the unit (the lot number and the room number of the entire condominium are listed). ⑤ Title section (display of one building) ⑥ Location: Address and lot number of the land where the building is located. ⑦ Name of the building: condominium name ⑧-① structure: structure of building, type of roof (shape of roof) and stories of building ⑧-② floor size: floor size of each floor, in ㎡ unit ⑨ Title section (Display of land, which is the purpose of site right) ⑨-① Land code: Number starting from 1 ⑨-② Location and lot number: Land address, lot number ⑨-③ Classification of land category: Type of land (residential land) ⑨-④ Acreage: Size of land ⑩ Title Section (Indication of Building in Exclusive Area) ⑪ House number: town name + house number + room number ⑫ Building name: Room No. ⑬-① Type: Residential, etc. ⑬-② Structure: Structure of the building, number of floors in the exclusive portion (1 floor) ⑬-③Floor area: Number of floors, size of inner room ⑭Title section (display of site right) ⑮-① Land code: Number starting from 1 ⑮-② Type of site right: ownership, leasehold right, etc. ⑮-③ Ratio of site right: ○○/○○○ (unit size of proprietary wall core/square meter of entire site) As mentioned above, the contents of the building registration certificate are also very different between detached houses and condominiums. Generally, land for condominiums has a land right, and if you purchase the exclusive part of the building, you will also get the land right as a set. The reason why the land is set is to prevent the building and the land from being purchased separately, and to reduce the complexity. If you have any questions, please contact us individually. Today, we were contacted by a tax accountant and asked to tell him the approximate price of the land, so we will explain the method of simple price assessment. A field survey is indispensable for accurate price calculation, and it is calculated using public maps and geological survey maps. The shape of the land, the price correction by the depth of land shape, the condition of the adjacent building and the width of the roadway are also important indicators. This time, we will use the transaction case comparison method to output the assessment results.
As a way of calculating a simple price, we will first refer to nearby sales examples. The information is based on general portal sites, REINS, current sales and past sales results. No two properties are the same, even though they are examples of neighbourhoods, so check each similar and different point and think about how it affected the original price and how it affects the property to be appraised. For example, if the property is located in Shimogyo ward, the target reference properties are limited to the same area. Set the same station as the nearest station and extract several to dozens of properties that are similar to the estimated price in advance. We then investigate the shape of the land, the access road, the shape, the proximity to the station and the characteristics of the area. This time, we have sent detailed links to each property along with the information below. Reference information 336-5 Land, Tenjinmaecho (corner lot) 156,000,000 yen (tsubo unit price 3.760 million yen) Taigoyama-cho land 59.8 million yen (tsubo unit price 3.207 million yen) Tourocho land 79 million yen (tsubo unit price 4.558 million yen) Takatsuji, Nishinotoin-cho, Land 161 million yen (tsubo unit price 2.987 million yen) Takatsuji Nishinotoin Land 174 million yen (tsubo unit price 3.004 million yen) Details of the actual property to be assessed are omitted, but the price was set at 4 million yen based on the width of the frontage, the shape of the land, and the ratio of frontage to depth. Since this is a simple desk assessment, the tax accountant will calculate the tax amount, cash flow, etc. referring to the above. Once we receive a formal assessment request, we will tell you how to calculate the details next time. Today, we would like to talk about the work of building management after the tenant has moved out.
First, the management company that receives notice of the cancellation will set up a date and time to be present with the tenant. The purpose of this is to check the condition of the room when it is handed over, and the person in charge of the management company and the tenant will check the room together on the day. At this time, the renter will be asked to arrange the delivery of all luggage, the disposal of garbage, and cancellation of water, electricity, gas, and internet in advance. By doing so, we will be able to check the empty room, and no one will receive bills for utility expenses after the fact. In the meeting, the damaged area is mainly checked. We will check the condition of the room and the burden of each, whether it is the damage due to the renter's responsibility or the burden on the lessor. Therefore, if there is damage due to the renter's responsibility, we will confirm whether he/she will compensate from the security deposit or pay additional repair costs. By carrying out this kind of work together, it is possible to prevent troubles at a later date, such as the fact that the security deposit was not returned and the requested repair cost was high. When the lessee vacates the room, the principle is to return it to its original condition. Therefore, without leaning unduly to one side or the other, be fair and determine who, what and to what extent will bear the burden. The next step is to restore the room to a leasable condition. For example, cleaning a room, repairing damaged areas, repairing or replacing damage or wear and tear due to age, upgrading equipment, or work to increase the value of a room. The only work actually done by the management company is to arrange for the work to be done by each specialist contractor. For example, cleaning and replacement of wallpaper is done by a cloth company. Cleaning is a cleaning company. Repairs depend on the location, but it is a water supplier, carpenter, or electrician. We will also ask a specialist Tatami shop to change the tatami mat. In addition, check the expiration date of the fire alarm, replace the faucet rubber packing at the water leak point, and replace the original plug of the washing machine with a new type. After that, a new key is exchanged and the tenant can move in anytime. These multiple tasks are from the move-out to the move-in of the new lessee. Even with all the preparations done so far, there are cases in which problems can be identified even after actually starting living. Even in such a case, by responding promptly, tenants can be reassured and trusted. Recognize a good relationship with the tenants, have them move in for a longer time, and make a good investment for the landlord. |
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AuthorArrows International Realty Corp. Archives
June 2023
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