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Submitted by: Shuri Satoh
Real estate is a top investment for hundreds of people around the world, especially in highly occupied areas, such as Tokyo, where the demand for rental properties is in demand, reducing the risk and ensuring a good return on investment.
When looking at any investment real estate there are some factors to take into consideration. The most important factor is the return on investment. There is no point purchasing a property where you are not going to get something back in return. While you own the property, you want a steady monthly income to pay towards expenses and a good profit when you sell one day.
You need to take risk factor into consideration. Depending on where you choose to buy will determine the risk involved. Highly occupied towns and cities reduce the risk while country areas may increase the risk. This is something you need to think about, in some cases paying more for an apartment in the city is a better investment choice than paying less for an apartment in the countryside.
Have you thought about the management of the property? When you invest in real estate you need someone to manage the property for you. If you already have a full time job, then you are not going to have the time to screen and meet prospective tenants, follow up on the monthly rental and handle any maintenance requirements.
Its always a good idea to see if the agency you are purchasing from offer a management program, this way you can leave the property with them and let them find the tenant for you, collect the rental on your behalf and handle any maintenance issues that may arise from time to time.
Do your homework. This is something you can do at home in your spare time. Go through the properties available in the area you are looking at, see what the average selling prices are and how much rentals are going for in the area. This is a chance to weigh up your options, ensuring that you are making the right investment real estate decision that will help you make your way through the property market without any problems.
Many people use this opportunity to get their foot on the property ladder. From here they purchase more investment real estate, building up a solid portfolio which is stable and can be worth a fortune in a few years. Ensure when choosing this option, that you invest wisely and the only way to ensure this is to do your homework before dealing with any agents in the area.
Always start small. Dont go for the largest mansion you can find as your first investment, rather buy a smaller apartment in the city where you know there is a rental demand. Buying a number of small apartments over a few years can bring in a steady income, paying off the apartments and ensuring a good return on your investment. From here you can start to move towards the more expensive properties and see what the rental demand is like for this type of property.
When it comes to investment real estate its advisable to have a bank in mind that you deal with regularly. As they get to know you and your investments, your standing with the bank will improve, you will be able to use a property you own as collateral on another loan, enabling you to slowly build up your portfolio, using the rental amounts to repay the loans.
Finally, always consider inviting other investors. Owning a percentage of a property portfolio is more appealing than not owning any property at all. So this is something to consider.
About the Author: Aonissin is a leading Japan real estate company offering a host of properties for sale and rental throughout the country. With years of experience, this company has been responsible for helping hundreds of people find their perfect home. The company is customer focused and offers a high level of customer service to customers looking to buy, rent or sell a property. Aonissin are constantly updating their extensive portfolio with a selection of properties to meet the requirements of all their customers. To find a property in Japan or to find out more, visit their website at
aonissin.net
.
Source:
isnare.com
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