Wednesday, August 11th, 2010
Let us introduce the following investment property.
Type: retail, office, and residential
Location: 3, Toyooka, Iruma City, Saitama (13-min walk from Irumashi sation of Seibu Ikebukuro Line)
Land: 149.13 square meters
Floor area: 281.77 square meters
Structure: Steel / 3 stroies
Year Built: 1990
Annual return (current): 3,603,000 yen
Annual return (100%): 6,219,000 yen
Asking price: 43,000,000 yen
Yield (current): 8.37%
Yield (@100%): 14.46%
In theory, this property’s yield can be as high as near 15%. But its current yield is just 8.37%. Location greatly matters with the performance of this investment property.
To consider the purchase of this property, you woud have to study and understand the location thoroughly – distance to major train stations and neighboring towns, and profile of the neighbors, access to shops for daily necessities and to public services (e.g. hospital and school).
Please let us know, if you are interested in this property.
Minato Asset Management