- Property For Sale
18.09 sqm, studio apartment + kitchen & balcony in Minami-ku, Fukuoka City, Fukuoka
Price - app. (£18,500) - Net - app. ( £193.50) (12.52% net yield p/a)
Conveniently located in Minami ward, home to one of Fukuoka city's oldest academic campuses, this building sports an excellent 94% occupancy. Tenant is a female company worker who has been renewing automatically since 2007.
(Prices are subject to JPY exchange rates on day of transfer, and may change without notice)
How to profit from JapanTogether we have identified a price range from £16,000 to £35,000 which offer the best yields from 9% to 16%.
These are cash only purchases and come tenanted with full management & accountancy in place so do not be put off by the thought of having to understand Japanese Tax laws.
These are selling fast, we normally only have a total of 4 units available at any one time because they just go under offer, normally to previous buyers. So if you like this investment please contact us so we can work directly with you to find the right property.
Taxes in Japan are fairly low, and are composed of -
5% income tax (for incomes under 2 Mil JPY - app. $22K at the moment), 10% for the next 3 Mil and so forth - you can find several good calculators online).
Property tax is app. 1.5% of the value of the property p/a as estimated by government agencies every year, based on sales statistics.
For Japanese residents there are further local council taxes, which foreign investors are exempt from. However, for all tax calculations and returns we would highly recommend to hire local accounting services (while there are good English speaking ones, they are mostly very expensive - we can provide this service as well, at an affordable price, through our contacts, so customers retain their single point of contact, which is what they normally prefer), and to concentrate investments in smallish-micro properties (under 200sqm), as this reduces property tax to 1/3-1/6 the amount, and a good accountant can also do wonders with depreciation tables and minimize income tax for a good few years at least (these small units also allow for the highest rental return and, Japan's economy being what it is, we'd highly recommend sticking this strategy to a greater or lesser degree - see CGT item).
Capital gains, as a rule, are at best increasing at about 1% a year in Japan as an average, and in rural areas are actually decreasing, to compensate for the property bubble that burst there in the early nineties.
While the March 2011 disaster and subsequent nuclear contamination (or the GFC) had little effect on the areas we sell in, which are on the other side of Japan, they may change this negative trend in the near future.
We sell in areas that are proving to be the cleanest in Japan, throngs of Korean and Chinese investors have been purchasing there since the disaster.
That's why we go for the high cashflow residential properties, rentals that yield a net pre-tax return of 11-16% - higher ones sold off-market normally, to our clients who have been pre-approved and budgeted, before they hit our websites.
If you cover your investment in 5-7 years and double it in 10-14 years in rent alone, anything beyond is pure bonus from our perspective.
As opening a Japanese bank account is very difficult without residency, we also provide banking services (all included in a small monthly fee), and clients can withdraw their funds at any given time (allowing for international transfer times) -
we would, however, recommend that fund transfers be at a minimum of several thousands of dollars worth, and that ample warning is given (2-4 weeks), to allow us to take advantage of profitable exchange rate trends.
Insurance covers all natural and "standard" disasters and is extremely low-cost, nuclear issues are covered by the government and utility companies (compensations could take time though if ever an issue).
Low risk high upside here. Contact us for full information.