I see there are 4 apartments or mansions in Nagano for sale each with a floor area of 185m2, packaged together for Y12million minimum bid, oe $USD120,000, thats $US30,000 per apartment. The court documents suggest the mansions are in good condition, polished floor, but also with a traditional tatami mat room. Based on a rental of Y55,000 per month, and they could rent for Y60,000 per month, you are looking at a gross rental income of Y2.64mil or a gross yield of 22%. But that's assuming you get them at minimum bid. You need also to consider the other costs associated with mansions, and buying a property of course. The good news is that you can get alot of leverage by buying such a property, and there should be a stable revenue because you will have multiple rental unirs and the location is close to the main road. So lets say after costs you have a net
yield of 15-17%, if we assume 70% bank financed, 5% interest rate on the debt, thats a 45% return on your equity. Worth holding them a few years, wait until the capital gains tax rate 
falls, then sell them off for a capital gain. You just need to come up with Y3.6mil and bank finance for the rest.Andrew Sheldon http://www.blogger.com/www.sheldonthinks.com
No comments:
Post a Comment