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.From this time, I would like to explain the terminology related to real estate investment in several parts.Please click the word you are interested in from the table of contents.
table of contents
Ramen structure
A type of condominium structure.Specifically, there are two types, the “Rahmen structure” and the “Wall type structure”.A Rahmen structure consists of vertical columns and horizontal beams forming a rectangle.There is an advantage that it is easy to create a free space because there are no load-bearing walls that cannot be moved inside the room, but there is also a disadvantage that pillars and beams tend to protrude indoors.If you look at the floor plan and see the pillars protruding into the room, it is considered to be a Rahmen structure. Wall structures are not suitable for high-rise housing.
Running cost
The initial cost is the monthly cost to maintain the facilities and property, and the cost incurred at the time of acquisition.Running costs (utilities, fixed asset tax, etc.), reserve funds for repairs, management fees, etc., can put pressure on profits depending on the condition of the property, so you should check carefully when choosing a property.
Leasing
Refers to the rental management support business.It is a service business for securing rental income in general, such as attracting customers in vacant rooms and rental transactions.
REIT
Called real estate investment trust securities, it is a product that collects funds from investors and invests in real estate, and distributes dividends to investors using rental income and real estate sales gains as funds.There is an advantage that you can expect the results of real estate professional management, but it can be said that everything is dependent on the contractor, so it is not suitable for those who want to determine the good and bad of the property by themselves and convince them to invest in real estate.
Renovation
The difference from remodeling is ambiguous, and the definition varies depending on the contractor, but it is roughly the size of the scale.Renovation aims to restore a dilapidated room to a new state, and is also called restoration.Renovation is different in that it carries out large-scale repair work and adds value to increase asset value.
Neighboring land diagonal line restriction
Regarding height restrictions, the Building Standards Act stipulates that the height of each part of a building can be increased as the distance from that part to the boundary line of adjacent land increases.
Reikin
There is a meaning of gratitude to the owner who owns it, and unlike the security deposit, it is not refundable.Rates vary by region.In order to secure stable tenants, there is also a strategy of not taking key money by differentiating from rival properties.
rains
It is a network system that is indispensable for conducting real estate transactions operated by the "Real Estate Distribution Organization" designated by the Minister of Land, Infrastructure, Transport and Tourism.Only real estate companies that are members can search for properties registered with REINS and register property information. It is an essential tool for real estate agents because of its advantages such as smooth transactions.
leverage
It refers to increasing the rate of return on equity capital.By using a real estate investment loan, you can acquire and operate a property with 1 to 3% of the originally required total capital.Making a greater effect with a small amount of money is called leveraging.
Rentable ratio
The ratio of leasable area to total floor area (exclusive area (rentable area) ÷ total floor area).Since the common areas do not directly generate income, the higher the rentable ratio, the higher the profitability (higher investment efficiency).
rent roll
It is a list of loan conditions.The rental conditions are written for each room, and you can check the tenant status of the property, such as rent, security deposit, and contract date.
Special loan agreement
When you apply for a property, you can cancel the contract to purchase real estate in the unlikely event that the loan fails.Troubles can be prevented by determining whether or not there is an obligation to contact other financial institutions if the financial institution declines the loan, and whether or not the deposit will be returned, and the compensation for damages.
Route price (rosenka)
There is no fixed price as the land price varies depending on the situation.For that reason, there are roadside prices and public prices as public indicators, and there are two roadside prices.
1. Inheritance tax assessment value: The price that is the basis for calculation of inheritance tax and gift tax by the National Tax Agency
2. Fixed asset tax assessment value: The price that is the basis for calculation of fixed asset tax, real estate acquisition tax, etc. by municipalities
By the way, in real estate transactions, it often refers to the inheritance tax assessment value.
loft
Generally, it refers to a space with a high ceiling and a part of the room with a double layer.Similar is Grenier, which means attic storage space.
Summary
We have introduced the technical term "la wa line" related to real estate investment.
At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.
