[Must-see for beginners] Introducing the terminology "Ka" related to real estate investment

Terminology that you encounter for the first time when you start real estate investment.There are a lot of kanji and English horizontal characters.There are many similar words, and I think that many people are confused at first because they do not know what they are.I would like to divide it into several times and explain the terminology related to real estate investment.Please click the word you are interested in from the table of contents.

City block

It is a unit that constitutes an urban area and is a basic unit for understanding the characteristics of space in city planning, landscape planning, urban redevelopment planning, etc.

Improvement order

Companies that have been disposed of as one of the administrative actions taken by Japanese government agencies against businesses subject to supervision must submit a business improvement plan and report on progress.To order the necessary improvement work to be carried out in cases where the retaining walls and drainage facilities required to prevent landslides and landslides are incompletely installed on residential land within residential land development regulation areas. there is.In malicious cases where voluntary improvement cannot be expected, a more severe punishment such as a business suspension order may be issued.

Renovation

This is construction that alters the structure of a building, such as demolishing all or part of the building and constructing a new building, or changing the layout of the building.Significant repairs to pillars, walls, floors, beams, roofs, stairs, etc. are considered renovations under the Building Standards Act, so an application for confirmation is required.

repurchase

It is called a special agreement to buy back the real estate once sold by returning the sale proceeds and contract costs. It is a special contract with a function.The redemption period cannot exceed 10 years, and if a period exceeding 10 years is specified, the period shall be 10 years, and renewal of the period shall not be permitted.

Cancellation fee

Once a contract has been concluded, it can be canceled for any reason.You may terminate the contract at will by waiving your deposit (or redeeming double the amount of your deposit).

House number

It is a number assigned to buildings registered by the Legal Affairs Bureau, and is a number for identifying buildings under the Real Estate Registration Act.A lot number is a number that identifies a piece of land, and one number is assigned to each piece of land (one unit of land).

Land conditions

Of the factors in evaluating the land (land plot) subject to appraisal, it refers to the factors of the land itself, such as topography, positional relationship with the street, and shape.

Tax return

It is a procedure to summarize income for one year (January 1st to December 1st), calculate tax on income, and report the amount of tax to be paid to the country (tax office).Those who have a positive amount after deducting deductions from their annual income must file a final tax return, and report and pay taxes to the tax office between February 1th and March 12th of the following year.However, if your annual income is 31 million yen or less, you receive a salary from only one source, and your annual income from a side job is 2 yen or less, you may be exempted under certain conditions.

Defect warranty liability

Responsibility to Buyer after delivery for "hidden flaws not known" at the time of delivery.

The subject of the warranty is

(XNUMX) Corrosion of wooden parts of main structural parts (roof, pillars, walls, foundation) (XNUMX) Rain leaks (XNUMX) Termite damage (XNUMX) Failure of water supply and distribution pipes
4 places.Under the Building Lots and Buildings Transaction Business Act, if the seller is a building lots and buildings transaction business, it is obligated to assume liability for defect warranty for at least two years.

corner lot

A corner lot is a corner parcel of land (a piece of land surrounded by roads on two sides) bordering on two intersecting roads. The point is that two or more directions are roads.It is easy to get a sense of openness because there are few adjoining surfaces with other buildings.Due to the flexibility of the floor plan, the selling price is generally higher for a corner lot even if the area is the same.

wall structure

It is a structure that supports the load of the building with load-bearing walls instead of columns and beams.Since it consists only of reinforced concrete walls, there are no protruding pillars or beams in the room, creating a neat interior space.The building is strong, highly earthquake-resistant, and has excellent insulation and soundproofing.In addition, the pillars and beams do not protrude, and basically there are no unevenness in the room.
However, since the load-bearing walls support the load of the building, they cannot be removed.As a result, it is not possible to renovate by removing the walls, and the degree of freedom in changing the floor plan is low.

Equal principal and interest repayment (ganrikintohensai)

The total repayment amount of principal and interest does not change, and the ratio of principal and interest to the repayment amount changes. This repayment method keeps the monthly repayment amount constant, making it easier to make a repayment plan, but the same borrowing period In this case, the total repayment amount will be higher than the equal principal repayment.

Equal principal repayment (gankinkintohensai)

This repayment method divides the principal evenly over the repayment period and calculates the interest according to the balance. Compared to the equal principal and interest repayment, the principal decreases faster, so the total repayment amount is less than the equal principal and interest repayment for the same borrowing period It will be less, but since the repayment amount at the beginning of repayment is the highest, the initial repayment amount will be large and the repayment burden will be large.

Return yield (Kangen Rimawari)

It represents the profitability of real estate and is one of the yields used to determine the profit price, which is the ratio of annual rental income to the investment amount.The appraised value of the real estate can be obtained by dividing the net income from the real estate for one period by the capitalization rate (direct capitalization method).In addition, there is a method of appraising the value of real estate from the cost and age of the property (cost method), and a method of appraising the value of the real estate from the price of similar real estate (transaction case comparison method).

Management company

A real estate management company is a company that conducts brokerage services related to tenant recruitment and general real estate management operations.There are companies that perform brokerage and management operations, those that only perform brokerage operations, and those that only perform management operations.

Terms of Management (Kanrikiyaku)

In the case of compartmentalized buildings, the basic matters such as the ownership relationship, rights and obligations between compartmentalized owners are stipulated by the Act on Unitary Ownership of Buildings.The management agreement stipulates the scope of common areas, usage methods, the authority and obligations of the board of directors, and other matters necessary for the operation of the management association. Therefore, you must use it in accordance with the terms of use.

management form

There are two types of management: (2) self-management and (XNUMX) outsourced management.

(XNUMX) In self-management, the management union performs the accounting and payment of management fees, maintenance and cleaning of buildings, and drafts large-scale repair plans.
(XNUMX) Outsourcing management is the case where the above operations are outsourced to a management company.

The ratio of self-management of the management union is extremely small
Currently, 90% of all management unions outsource all or part of their management work to management companies.

Management fee (Kanrihi)

In a condominium unit, each unit owner contributes to the maintenance, maintenance, cleaning, etc. of the entire condominium (common areas).The management fee belongs to the management association, but in most condominiums, management is entrusted to the management company in the form of consignment.

Existing ineligible buildings

Existing unqualified buildings are “buildings that were legally built according to the standards of the old laws and regulations” at the time of construction and completion. A building from which parts are created.

Northern slope restriction (Kitagawa senseigen)

It is one of the so-called oblique line restrictions, which is a regulation that limits the height of buildings stipulated by the Building Standards Act, and aims to prevent the deterioration of the sunshine on the neighboring land on the north side.Specifically, it is regulated by "height" and "gradient (angle) of oblique line" starting from the north adjoining land boundary line.

Kyakuzuke

It is to find a buyer (tenant) of real estate that has been requested to sell (rental offer).

cash flow

It is the flow of money (inflow/outflow, income/expenditure).

cap rate

One of the indicators for evaluating the profitability of investment properties in real estate investment, it is calculated by dividing the NOI (net income) generated by real estate by the real estate price.

capital gain

This is the "gain on sale" that arises from price fluctuations in assets such as securities and real estate.On the other hand, income gain refers to income in possession.

boundary

Boundaries indicate the extent of exclusive ownership.

common area

For compartmentalized ownership buildings, this is the part of the building that is shared by all compartmentalized owners.

Neighborhood commercial district

It is a type of use zone stipulated by the City Planning Act, and the use facilities that can be built are commercial facilities, offices, residences, shops, hospitals, public facilities such as schools, hotels, pachinko parlors, karaoke boxes, movie theaters, garages, etc. You can also build a small factory, such as a warehouse.

Sectional ownership

When a building consists of independent parts (rooms) like a condominium, owning each independent part is called compartmentalized ownership.The Sectional Ownership Act requires structural independence and independence of use.

Gross Yield

Also called surface yield.
Gross yield = annual rental income / real estate price x 100

Auction property (Keibaibuken)

If most of the items received an auction request from the creditor because the owner is unable to pay the loan, the owner does not choose to sell voluntarily, or if the owner tried to sell voluntarily and it was unsuccessful. To do. You can see the "property description", "current status survey report", and "evaluation report", but you cannot check the property yourself.Even if there are some problems with the property or troubles with neighbors, basically the successful bidder has to solve it himself, so it is said that the price is about 3% to 5% cheaper than the general market price.

Light steel frame

“Lightweight steel frame” is a type of steel frame that is used as a building material for housing.Houses that use steel materials with a thickness of 4 mm or less are called lightweight steel structures, and houses that use steel materials with a thickness of over 4 mm are called heavy steel structures.

Depreciation expense

Depreciation expense is an account item that is used to record the purchase price of expensive electrical appliances, machinery equipment, interior equipment, buildings, etc. little by little according to the usable period.

cost method

The cost method is one of the appraisal methods, and it is a method of appraising real estate based on the replacement cost of the real estate.Other methods include the transaction case comparison method and the profit capitalization method.

Current state of land

The current land category is not the land category on the land registry, but the current land category as seen from the way it is currently used.

inspection certificate

The inspection certificate is an intermediate inspection during construction and a completion inspection at the time of completion of construction. It is a document that is issued when conformity is recognized, and will be issued after the completion inspection after the completion of the house.

Restoration to original state

By returning the room to the state it was in when you moved in when the lease contract ends and moving out, you can return the room as it is even if it has deteriorated over time, as long as it is used normally according to the usage specified in the contract. will beThe Ministry of Land, Infrastructure, Transport and Tourism has issued the "Troubles and Guidelines Concerning Restoration to the Original Condition", in which the request for the restoration cost is defined as "Among the decrease in building value caused by the lessee's residence and use, the lessee's intentional or negligent It is limited to the scope of "wear and damage due to violation, other use that exceeds normal use".

Building confirmation

Based on the Building Standards Act, when building or renovating a building, it is to examine whether the building plan of the building conforms to the Building Standards Act and regulations related to building standards before the start of construction.

Building confirmation application (kenchikukaninshinsei)

It is an application to confirm whether the building and ground conform to the Building Standards Act when building or renovating a building.

Building confirmation number

A building permit number is a number issued to a building that has completed a building permit.

Building Agreement

It is a private agreement approved by a specific government agency (governor, mayor, etc.) that responds to local requirements that cannot be met by the Building Standards Act, which sets minimum standards for construction.Building agreements can be broadly divided into agreement agreements and one-person agreements, which can be added to the standards stipulated by the Building Standards Act.

Construction conditional land sales

It is a land sales contract whose condition is to conclude a building construction contract within an arbitrary period after concluding the land sales contract.

building area

It is the area of ​​the perimeter of a building when viewed from directly above.It is used as a calculation standard for the building coverage ratio (the ratio of the area of ​​the building to the site), and the building coverage ratio x land area = building area.

Building coverage ratio

Building coverage = Building area / Site area
By securing an appropriate amount of open space within the premises, it is intended to secure sunlight and ventilation and prevent the spread of fire.The building coverage ratio is relaxed by 1/10 for fireproof buildings built in fire prevention zones and buildings built on corner lots designated by specific administrative agencies.

current state (Genkyo Yuushi)

To be sold in as-is condition.

Exclusive industrial zone

Under the City Planning Act (Article 9), it is defined as "an area designated to enhance the convenience of industry", and those who can build are public baths, shops (no limit on area, but restaurants, etc. are excluded), offices ( (no area limit), factory (no area limit), karaoke box, driving school (no area limit), warehouse for warehousing that cannot be built, such as housing, condominium, dormitory, boarding house, library, kindergarten, elementary school , junior high school, high school, university, vocational school, hospital, nursing home, restaurant, hotel, inn, bowling alley, skating rink, golf driving range, pachinko parlor, mahjong parlor, movie theater, theater, restaurant, cabaret, private room It is a bathhouse.

Posted price

Based on laws and regulations, the unit price per square meter for a specific location as of January 1st of each year and the price for a vacant lot at an individual location are announced around the end of March every year.

Structural calculation sheet

Calculations to examine and confirm the safety of buildings are called structural calculations, and structural calculations are documents that summarize the outlines, assumptions, calculation formulas, calculation results, etc. of structural calculations for building structures.

High-rise residential district

It is one of the areas and districts listed in Article 8 of the City Planning Act and is designated to induce the construction of high-rise housing.This district is a class 1 or 2 residential district, a semi-residential district, a neighborhood commercial district, or a semi-industrial district. It is a district that expands the floor area ratio limit to a maximum of 400%.

public road

Roads designated, constructed, and managed by the national government, prefectures, municipalities, and special wards.

Altitude district

One of the regional districts based on the City Planning Act, in which restrictions are set on the height (maximum or minimum) of buildings in order to maintain the urban environment and promote land use within the restricted area. It means the district whereSlanted line + absolute height (1m to 10m), with a minimum height of 45m and types from 7st to XNUMXth.

High-use district

One of the regional districts based on the City Planning Act, in order to update the urban functions of the urban area for districts with extremely low land use conditions within the zoning, the maximum and minimum floor area ratios and floor area ratios of buildings. It is a district that aims at the rational and healthy advanced use of land in urban areas and the renewal of urban functions.

Fixed interest rate

A fixed interest rate is a plan in which the interest rate does not change for a certain period of time from the date of borrowing, and when that period ends, the interest rate will be reviewed at that point in time.After the fixed period ends, you can choose the same fixed period, change the fixed period, or choose a variable interest rate.

Property tax

It is a tax levied on real estate and is calculated based on the assessed value of fixed assets.A tax is levied on those who own real estate as of January 1 every year, and is collected by municipalities.

Property tax assessment value

It is the price of land and buildings, which is the base price for property tax.The fixed asset tax assessment value is determined by the governor or mayor of the municipality based on the fixed asset assessment standards established by the country, and is registered in the fixed asset tax ledger.

Summary

We have introduced the technical term "Ka-ko" related to real estate investment.

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