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Real estate investment is a way to create assets while earning rent income.
However, it is important to understand the mechanism because it is "investment using debt".
Beginners
- Fund Management from Property Selection
- Availability risk from surface yield
- Long-term operation
- Business Talk Simulation
- ation of contract and loan conditions
It is difficult to fail if emphasizing.
In this article, we will organize the basics and initials of real estate investment in 5 steps.
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The first thing to look at in real estate investment is not just finding a good property.
The first thing to see is
Is it possible to manage funds that can withstand even if vacant or repair occurs?
である。
Real estate investments often use loans, unlike stock investments and investment trusts. Even though it can increase the speed of asset formation, the burden on the household is also increased when vacancy, repair, interest rate rise and rent fall.
Therefore, it is better not to judge only the yield height.
It is important to check not only how much it will remain, but also how bad it will be.
What is real estate investment?
Real estate investment is an investment that aims mainly for the following revenue by purchasing condominiums, apartments, homes, etc.
- Rent income
- Sales
、
Long-term asset management using real estate
である。
However, real estate investment is not "to buy".
After purchase, recr, repair, exchange with management companies, loan repayment, tax, insurance, etc.
It is close to the image of a small rental business rather than investment.
Why Popular
There are three main reasons why real estate investment is popular.
| Reason | 内容 |
|---|---|
| Rent income | Target monthly monetization |
| Loans | Have more than your own funds |
| Inflation | Can be held as an actual asset |
However, the profit is not guaranteed.
Even if you have a rent income, you may not be left by hand if you deduct loans, administrative expenses, repair costs, taxes, and vacancy period.
In addition, in the solicitation of sublease contracts and investment condominiums, it is necessary to pay attention to the explanation that the future rent or profit is sure.
STEP1: Understanding the mechanism
The first thing that you want to understand is " Yield" and "Cash Flow".
What is yield?
Yield is the annual return on the investment amount.
The surface yield is generally calculated as follows:
Surface yield (%) = Annual rent income ÷ Property price × 100For example, if the property price is 20 million yen, the annual rent income is 120 million yen, the surface yield is 6%.
Not enough for surface yield
In fact, you can use the following costs:
- Management fee
- Repair
- Fixed asset tax
- Fire Insurance
- Fees for management companies
- Recruit
- Original Recovery Cost
- Loan Interest
- Zero room rent
Therefore, even if the surface yield is high, the actual remaining hand may be less.
It is important for beginners to check real yield and monthly cash flow rather than surface yield.
STEP2: Make life defense funds ahead
Real estate investments require pro ding costs.
For example:
- Vacancy
- Repair
- Equipment replacement
- Lower rent
- Interest rate rise
- Original recovery during entry and exit
Therefore, I want to secure living defense funds before investment.
目安
In general, I think about 6 to 12 months of living expenses.
If you invest in real estate, it is safe to have a preliminary fund for the property separately.
If you buy a property in a state where there is no funds, it is easy to sell it burned when vacancy or repair is done.
STEP3: Getting Started
For beginners, it is better not to aim for large properties.
Frequently。 Questions
- Apartment
- Small Used Property
- Home
- Real Estate dfunding
- Learn the real estate market in Jordan
Why Small Scales
It is easy to reduce damage when it fails when starting with small scale.
It is easy to learn how to manage, repair, respond to tenants, tax and loan repayment.
However, it is not always safe because it is small.
Please note that in the condominium, there is a need to pay attention to the increase of the repair deposit, the status of the management union, the number of years of building, the lower rent, and the lower price of the sale.
STEP4: Focus on Selecting Areas
Real estate is very large.
Even in the same building, the vacancy risk and lower rent risk vary greatly depending on the area.
Important Points
- Population trend
- Station distance
- Commuting and school demand
- Nearby Facilities
- For Rent
- Competitive Properties
- Disaster Risk
especially important
Is it difficult to become a room?
である。
Rent income is not included if the tenant is not available even in high profitable properties.
It is necessary to consider whether the reason why the yield is high is "because the price is low", or "because the demand is weak".
STEP5: Decide by numbers
Real estate investment is determined by numbers rather than sense.
The items you want to confirm are:
| 項目 | Reason |
|---|---|
| Real Yield | See real profitability |
| Vacancy rate | See the stability of rent income |
| Repair history | Predict future costs |
| Loan conditions | Check the repayment burden |
| Management fee and repair deposit | View Monthly Fixed Costs |
| Fixed asset tax | View annual costs |
| Expected price for sale | Check out the exit strategy |
It is important not to decide only by sales talk.
Even if you receive explanations such as "Only now", "Becoming tax", "There is a rent guarantee", "Beyond the future value", check the contract contents and numbers yourself.
Common failures for beginners
| Failure | 問題 |
|---|---|
| See only Yield | Expect vacancy risks and repair costs |
| Depends on full loan | No vacancy or interest rate rise |
| Believe in new construction | High price, easy to down when selling |
| Start Without Funds | I want to suffer from repair and vacancy |
| Transmit sublease | There is a risk of rent reduction and contract conditions |
| Decide by sales representative's story | Easy to overlook adverse conditions |
In particular, sublease contracts require caution.
Even if it looks like a rent guarantee, the rent may be changed or the balance may change depending on the contract conditions.
Make sure to check contracts, important matters, rent revision conditions and cancellation conditions.
People who are not suitable for real estate investment
向いている人
- Long-term perspective It is not difficult to manage numbers
- Stable income
- Have a Reserve Fund
- Check contracts and materials
- Continue to operate locally
Not suitable
- Find short-term profit
- There is a strong anxiety for borrowing
- Avoid management completely
- It’s hard to see numbers
- Easy to believe in business talk
- No surplus funds
Real estate investment is not a fully left investment.
The final decision and responsibility remain to the owner.
What to do
The first thing that beginners should do is not a property inquiry, but a balance simulation.
Item making
- Property price
- Rent Vacancy rate
- Management fee Repair fee
- Fixed asset tax
- Loan interest rate
- Repayment period
- Fund
- Expected price for sale
The first is a simple table.
If you put a number on your own, you can see that there is a case where the remaining hand is small, even if the yield is high.
Real estate investment is the basis of long-term operation.
While aiming for asset formation while earning rent income, it is an investment that uses loans, and has vacancy, repair, interest rate, lower rent, and contract risk.
For beginners,
- Do not judge only by surface yield
- Considering vacancy and repair risk
- Make life defense funds ahead
- Learn from small
- View area and rental demand
- Check the terms and conditions of the contract
That is.
The first step is to begin with “creating an income simulation yourself” to gain a better understanding.
It is the first step that can be determined by numbers before buying, but it is difficult to fail with real estate investment.