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Question title: Investment in newly built studio apartments

Recently I received a solicitation.
Within 3km from Tokyo station, within 2 minutes from the Toei Oedo Line station. Price is in the XNUMX million yen range
I think it's a good place because it's close to the station and it's easy to get to the city center.
However, if you buy with almost debt, it usually seems to fail due to rising interest rates, falling rents, and falling asset values.
Who should be investing in a studio apartment and what should they do?
Any solicited property is said to be okay because it is close to the station, or as a tax saving, insurance substitute, or pension substitute.
I wonder if I will really earn rent in 20 years.
Please tell me if you like.

In the age of deflation ...


Nice to meet you. My name is Tokuda on Rich Road.

There seems to be a lot of questions asking whether you can buy a new condominium these days, but from the conclusion, buying a new condominium with a long-term loan seems like a nonsense.

In the era of the 30's, when real estate went up rapidly, people's incomes increased, and rents also increased, I think there was no major risk in taking a long-term loan.

But that's not the time now.

For example, if you make a full loan of 2000 million yen with an interest rate of 2.9% for 30 years, the monthly repayment will be 83,245 yen, and the total payment will be over 30 million yen in 3000 years. Currently, the market value of a 30-year-old condominium in Minato-ku is below 1000 million yen.

In addition, even if you get a rent of nearly 10 yen at the beginning due to new construction, I think that the rent will fall below 30 yen by the 7th year of construction.

Only high-income earners with annual salary of ¥ 1500 million or more can purchase a new condominium, expense the loan interest rate and depreciation expense, and earn tax by adding up their salary income.

The biggest attraction of real estate investment is still stable rent income.

Therefore, 1. First of all, the location is good.
2. A condominium built 15 to 25 years old
3. Put 2-3% of cash or down payment,
4. Repay with a short-term loan
I think it's best to purchase by that method.

From what I heard, I think this condominium is in a very good location, and I think it will be a place where we can expect rental demand in the future. However, the purchase method for that seems to be a little difficult ...

If you have any questions, please feel free to contact us anytime. Then ...

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Answer staff: Rie Tokuda