If you do investment efficiency and operation efficiency this property!
Residence system is overwhelmingly more demand, it does not depend on the fluctuations of the economy
When the economy deteriorates in an office system, the number of companies that are borrowers will decrease
Because the residence is a household facility, the cost is low
There is a variety of exit strategies for one building (selling it, selling it as it is, selling it, selling it as divisional ownership)
Operating ratio (ratio of expenses to rent income is low compared with local property, expenses are the same even in the same area of rural areas
Since both land and building are their own, it is decided by yourself when and how to make reform of which scale
Land in urban areas, especially in Tokyo is hard to drop in value
Caution
As the scale is large, the cost of repair becomes relatively large
When an earthquake, accident happens, the risk increases because the scale is large
2 Urban, Segment ownership, Residence
If you value importance to risk distribution this property!
Competition rate with other investors is lower than for one building property and it is easy to acquire property
Can invest from a small amount
You can distribute risks of vacancies, incidents etc. by buying multiple classified property by budget of one building
Repair cost does not occur at a time because there is reserve fund
It takes time and effort since the management association will manage and operate daily
Caution
Maintenance of buildings, reconstruction can not be done at their own discretion
Investment law which takes time to increase assets compared to one building property
Running cost is higher than one building
3 Urban, detached house, residence
Demand as a store if the location is good!
Residents use it like my home so it will not take the trouble of owners
Owners themselves can decide necessary repair work at necessary time
Family households are the main tenants. Because of the relationship of school attendance, once the tenancy is decided, the tenancy period will be prolonged so the owner can earn stable revenue over the long term
Even if you are away from the station there is a demand for rent. (The distance to the station is important for single households, but the presence of parks and schools is regarded as important for family properties)
Caution
If you miss the peak of the moving season from January to March there is also the possibility that the vacancy situation will be prolonged
4 Local suburbs, one building, residence
If you place importance on yields, this property!
If you understand demand and supply balance, regional characteristics you can earn high returns in the short term
Easy integration evaluation (= loans are easy to get out)
Caution
Demand / supply balance and population dynamics are not always stable, so it is for advanced users of real estate investment
In rural areas the rate of decline in rents increases
To the business operator
