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Q & A when in trouble

Frequently Asked Questions

AThere are banks where full-time housewives can take out loans with their homes and real estate as collateral. In this case, even if the name of your home or profitable real estate is your master, it is possible for your wife to form a loan if your master approves and you can become a joint and several debtor. Basically, the idea is to judge by "household income"

ALeverage is the principle of leverage. It is to raise a large profit (property acquisition) with a small self-financing. A prerequisite for leverage effect is to borrow loans (equity capital). In other words, "small own funds + large borrowings = acquisition of large properties".

A

First, "divide the available funds by 2-3 and buy the first real estate." For six months to a year, rents have been steadily increasing, and monthly repayments have not been interrupted. If credit is properly given to banks, the second and third buildings can be increased. You.

So I think it's better to start small and slick without having to aim for a very large one from the beginning. That is also a risk diversification.

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When you buy a real estate, you need cash of “down payment + expenses” as your own funds. The down payment required by banks varies from 10% to 30% of the selling price. "Expenses" require "about 6% of the selling price". The breakdown of “expenses” includes “bank loan costs, registration costs, fire insurance premiums, stamps, brokerage fees”, etc.

Assuming that your own funds are 1,000 million yen, and try to calculate the selling price of the real estate to be purchased by reverse calculation, "own funds 自己 (20 + 6%) = selling price", and the real estate to be purchased is 1,000 million yen ÷ 26% = 3,850 million yen.

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In various investment books, many success stories such as "I bought a 5 million yen apartment with a full loan!" Are introduced, "If the collateral evaluation comes out, the full loan is OK It seems that there are many people who think that, in fact, they need 10-30% of their own funds.

If you have real estate or other assets, or if you have a personal relationship with a bank, you may be able to make a full loan with `` credit '', but it seems difficult for those who are starting to invest for the first time is. If you have a down payment, the balance between rent and loan repayment will be better, so it is better to purchase from a small real estate according to your own funds

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After all, 1) do not make a mistake in “place”, 2) do not chase only “yield”, 3) choose “good building management”.

  1. Real estate investment is for rent income, so making the wrong place is fatal. Location conditions such as the area, along the railway, the surrounding environment, and the distance from the station will be the most important.
  2. Second, "yield" is a very important factor, but it can only be gained when a room is fully occupied. For example, an apartment with a yield of 15% and 10 rooms will have a 5% yield if 7.5 rooms are vacant. Conversely, even if you have an apartment with a yield of 8% and 6 rooms, it will be better if you keep it fully occupied and you will have better yields and mental health is good.
  3. Finally, even for a wooden apartment with a size of about 6 rooms, repairing the roof and outer walls with scaffolding costs about 250 to 300 million yen. In order to save a lot of money, I think it would be better to purchase a building with good preservation conditions from the beginning.

AThe biggest concerns in old apartments are the rooftop waterproofing and the deterioration of plumbing pipes. Regarding the repair, it still costs money. If you own one building, you need extra funds. Regarding rental, if the location is good, I think that indoor remodeling etc. can be enough.

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The benefits of owning multiple condominiums are 1, "Cashability" and 2, "Risk Diversification".

  1. For example, comparing ten-room apartments to ten-room apartments requires cash! At that time, if you own a section, you can also sell one room. Conversely, in an apartment, it is impossible to separate just one room. In addition, apartments with separate ownership cost about 10-1 million yen per room, so there are many buyers. Since it can be sold in a short period of time, it is highly "cashable".
  2. In addition, if you own a condominium-owned condominium here and there, even in the event of a natural disaster or fire, it will be "risk diversification."

ABecause it is an investment, I think that "yield" is important. However, chasing only the "yield" figure should not seem like a failure. The important things before "yield" are "place" and "box".
"Place" refers to the area, the area along the railway, the surrounding environment, distance from the station, and location with potential for future development. "Box" refers to the state of management of buildings and rooms, the size and layout of facilities, the contents of facilities is. If you make a mistake in the "place", no residents will gather, no matter how much Gambatte, and if you make a mistake in the "box", it will cost you a lot of money to repair the building. "Yield" can only be obtained when the rooms are fully occupied, and real estate is held for a long period of time, so it is necessary to have future prospects, such as 10 or 20 years from now. I think it is good to have something well balanced.

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