short-term profitability short-term earning power Revenue
Properties that generate large profits in a single fiscal year are given a high evaluation.
Evaluation index: surface yield
Calculation formula: [Expected income at full occupancy x 0.8] ÷ price *What the formula evaluates: Real return per year
Applicable property example
Properties with high surface yields are highly rated for short-term profitability.
longProfitability long-termRevenuePower Revenue
Properties that generate a large amount of income over multiple years (the useful life of the property) are given a high evaluation.
Evaluation index: surface yield, building age
a formula:[Expected income at full occupancy × 0.8 × compound interest rate of income] ÷ price *What the formula evaluates: Real annual return x long-term investment rate
Applicable property example
Properties with high surface yields and short construction years are highly rated for their long-term profitability.
short-term tax savings short-term tax savings Tax saving
Properties with large depreciation expenses that can be recorded in a short period of time will be given a high evaluation.
Evaluation index: Building age, building structure (evaluate wooden structures more)
Calculation formula: Steel and reinforced concrete: 1 ÷ remaining useful life Wood: [1 ÷ remaining useful life] × 1.5 *What the formula evaluates ⇒ How short is the remaining depreciation period? (Wooden structures are valued more)
Applicable property example
Wooden properties that have exceeded their useful life will be highly evaluated for short-term tax savings.
Long-term tax savings long term tax savings Tax saving
Properties that can record depreciation expenses over the long term are highly evaluated.
Evaluation index: Building age, building structure (evaluate steel frame and RC more)
Calculation formula: Wooden structure: remaining useful life Steel frame structure: remaining useful life x 1.3 RC structure: remaining useful life x 1.5 *What the formula evaluates ⇒ How long is the remaining depreciation period? (Weight-based evaluation)
Applicable property example
Properties with heavy structures that are relatively new are highly evaluated for their long-term tax savings.
Compression of inheritance Inheritance tax reduction effect inheritance
Properties where the difference between the inheritance tax appraisal value and the actual appraisal value can be expected 1 is highly rated.
1 Properties with a high building area ratio in the city center (e.g., condominiums, etc.)
Evaluation index: Vacancy rate by AI assessment, building area ratio
Calculation formula: 1 ÷ vacancy rate × [building area ÷ land area] *What the formula evaluates: How easy is it to find tenants in a location and how high is the building area ratio?
Applicable property example
A property with a low vacancy rate by AI assessment and a large building area will be highly evaluated for inheritance reduction.
long-term asset Long-term asset evaluation as inherited property inheritance
High evaluations are given to properties that are easy to move into and have a large amount of land that has a useful life remaining.
Evaluation index: Vacancy rate by AI assessment, land area ratio, building age
Calculation formula: 1 ÷ vacancy rate × compound interest rate × [land area ÷ building area] *What the formula evaluates: How easy it is to find tenants in a location, how new it is, and how high the land area ratio is
Applicable property example
Newly built properties with low vacancy rates by AI assessment and large land areas are highly evaluated as long-term assets.
Property type Q&A Revenue Tax saving inheritance
How is property type determined?
The property with the highest valuation score is labeled as the property type.
