Saturday, January 23rd, 2010
Dear Investors,
I have just come across with a very high-yield investment property in a suburb of Tokyo. Its details are as follows.
Type: restaurant business
Location: Shimonagata, Nasushiobara City, Tochigi Prefecture (about 2.5 hours from Tokyo station by local train)
Land: 561.31 sq. meters
Floor Area: 541.00 sq. meters
Structure: steel / 2 stories
Year Built: 1990
Yield (at operation rate of 100%): 27.83%
Annual return (at operation rate of 100%): 15,252,000 yen
Asking price: 54,800,000 yen
Others: natural hot springs nearby and a 12-min-walk from a JR station
Yield is high. But risk is also high. In particular, it will probably be difficult to find tenants for income gain, buyers for capital gain, and vendors for daily operations. Also, it will probably be difficult to find lenders.
I am just wrting to let you know that there are many high-yield investment properties outside of Tokyo which may be worthwhile to consider for for your portfolio. But, please let me emphasize once again that there is high risk behind them.
As a matter of fact, good real estate agents warn that focusing on only high yields is risky for search of investment properties.
Please let me know, if you are still interested in this kind of investment property.
Best regards,
Minato Asset Management
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Posted in Tochigi Prefecture, Tokyo real estate market, Tokyo real estate view