• 2021.05.06
  • Asset value
  • Japan business manager visa
  • Japan property
  • Japan Property Investment

Factors that determine asset value of property in Japan In case you buy second-hand condos

Factors that determine asset value of property in Japan
In case you buy second-hand condos

Hello! Again!

Masaki Tanzawa, and a licensed property management professional.

As I have explained so far, second-hand condos are getting popular in the Tokyo Metropolitan Area as investment targets.

This time I will focus on points of element to decide an asset value of second-hand condos. In other words, you should invest in second-hand condos with an eye to choose.

What points do you need to check if you buy a second-hand condo?
When you look for good second-hand condos, it is inevitable to consider the following factors.
1.Age of building
2.The location
3.Management status
4.The vacancy risk
5.Surrounding environment
6.Good renovation of inertia

Age of building
Legal service life of buildings constructed by reinforced concrete in Japan is 47 years.
You all however know practical service life is longer than it, generally said at least 60 years and longer.
We also have a common view that the price value will go down as the building ages.
People customarily appreciate a young-age building, even a second-hand one, and naturally the transaction price is higher as the younger it is.
But I do not think the younger is totally better when we foresee the return of investment.
The market price indicates the price of second-hand ones is bottom-stop ordinary at 20 years. The price transaction would retain almost the same level after 20 years.
Although the condo of an over 20-year-old is not easy to sell looking at just the value of building, the asset value is a different story.

The location
Good location means in Japan that it is located in the place preferably as follows.
– Within walking distance (10 minutes or less) from train station
– Convenient shopping, schools, hospitals, local government facilities and park
– A quiet environment
– Not close to NIMBY facility

Others
It is generally said that Japan is a country of good security, people still want it to be ensured safety and security.
Cleanliness of common areas can make you presume a good management status.

The real asset value of condominiums
As I have said the value of condos is determined by several points as above.
In particular the location is a significant factor of those, even a somewhat aged condo can be valuable in terms of investment under profit yield.

Speaking as a conclusion, if you could find the second-hand condo to meet the points above, it would be possible to avoid a long-time vacancy risk. So your investment in property will result not bad.

Masaki Tanzawa

AER NEXT LLC.
7F, KeioShinjuku321 Bldg., 3-2-1, Shinjuku, Shinjuku -ku, Tokyo, JAPAN 160-0022
TEL +81-3-5341-4611
FAX +81-3-5341-4623
License: Tokyo(1)105965
Contact person: Masaki Tanzawa
Email: tanzawa@ablife.jp
URL:https://www.investorvisa.jp/investjapan/
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