Learn real estate management

Q: Which area should I choose to invest in?

A: There is no doubt that holding property in urban areas is the most stable.

However, which area is considered "good" as an investment target area depends on the needs of the investor. The aforementioned "city center" may be "good" in terms of the stability of rental demand, but it cannot be said to be "good" in terms of yield.

On the other hand, if you are looking for a high return, you will inevitably target rural areas where purchase prices are lower, and compared to urban areas, you will also be running the risk of longer vacant periods, which means lower actual returns.

Especially with single-building properties, loans from financial institutions often depend on the appraisal of the property, so it is also necessary to consider "where it is easier to obtain loans."
If it's not realistic to purchase, it will just be a pipe dream.
I think the important thing is to clarify your purpose and policy for owning real estate and then choose an area that matches that.

This idea is also our basic stance that you should choose a property based on your needs, rather than a property prepared based on the company's logic.

Q: The actual walking time seems longer than it looks in the brochures and sales drawings.

A: In real estate advertisements, the display of "xx minutes on foot" means "Fair Competition Code for Real Estate Display" requires that street signs be displayed assuming a walking speed of 80 meters per minute.
Actual time may vary depending on walking speed, number of traffic lights, etc.

Q: Looking for a property that matches the market rent?

A: One of the requests we often receive from our customers is, "I want a place in a popular area." Anyone who manages real estate would think the same.

However, what's important is not just to choose a "popular area," but also to analyze the main tenant demographics in that area and ensure that the property's set rent is in line with the market rent in that area.
To give an extreme example, even if you own a high-end property in an area with strong student demand, you may struggle to find rent.
The types of properties required will obviously vary depending on the income bracket and tenant attributes of the area, so it is important to consider whether the property you are considering will have appeal within that area.

Also, when it comes to one-room apartments in the city center, it is not enough to just think, "It's fine because it's in the city center," but it is also an option to look at nearby properties with similar floor plans, age, facilities, etc., and avoid areas with a lot of competition.
Due to the "one-room regulations" that have almost completely come into effect in urban areas, it is common to see large numbers of the same type of property being sold at the same time in areas where the ordinances are less restrictive.
If there is competition for tenant recruitment at the same time, you may be forced to lower the rent, which could affect your own profits.

Q: Is it worth investing in resort properties?

A: Resort condominiums flourished during the bubble economy, but now some are being sold for hundreds of thousands of yen, and at first glance it seems like you can quickly recoup your investment. However, it is dangerous to acquire one just because it is cheap.
The reason is···

1. Management costs
One thing to be aware of when purchasing a resort condominium is the management fees. Resort condominiums are sold on the basis that they come with luxurious facilities such as large baths and pools, but in return, the management fees are often much higher than those of regular condominiums. In areas with heavy snowfall, snow removal costs are also included in the management fees, and there are cases where management fees of 50,000 to 80,000 yen per month are required.
In detached villa areas, surrounding roads, water supply, waste disposal, etc. may be managed by a local government organization or management association, and you may be charged a monthly fee for these costs under the names of maintenance fees and upkeep, so it's a good idea to check in advance.
Of course, just like with a regular rental apartment, you must check the repair reserve fund. We also recommend that you closely check the repair history of the common facilities and the status of the management general meeting.

2. Delinquency rate of repair reserve funds and management fees
Many owners of resort condominiums use them for leisure or long vacations, and the majority do not live there, so compared to regular condominiums, the rate of overdue repair reserve funds and management fees is higher. There are many properties that were purchased at high prices, especially during the bubble era, but have hardly been used since then and are now unsellable.

Given these circumstances, it seems reasonable to assume that the maintenance costs for the entire building are not under control, which is why it is being put up for sale.
In the first place, the fact that the property is being offered at a price of "tens of thousands of yen" makes it clear that the seller wants to sell it as soon as possible.
You need to find out the seller's reasons for selling through the intermediary company, understand the level of risk, and carefully determine whether it is an acceptable risk.

When selecting a resort property, even if the area was bustling when it was newly built, the flow of people has changed, and you must take into consideration issues such as the location itself and rental demand. You must be extremely careful not to "buy cheap, buy cheap."