What do I need to consider before buying property?
The most important question for you to answer is: why are you considering a purchase in the first place? The three most frequent reasons for purchasing of property are a home to live in, an investment property, or a vacation home. Depending upon which category you fall into will determine how best to proceed. People often think of purchasing a property for one reason, and then have the other two as sort of a backup use for the property.
I would like to invest in real estate, but don't want the risk of just one property. Are there alternatives?
If you are looking to invest in real estate but do not want the associated risk of having so many eggs in one basket, there are options available. For example, you are able to invest in a wide range of international property markets through the use of various property funds or real estate investment trusts (REITs). We are happy to outline for you how to best access such solutions.
Should I buy a home, or continue to rent?
It depends on the a few key variables of your situation, but a good rule of thumb is: if you know that you will be living there for at least 5 to 7 years, it’s worth considering a home purchase. If you might move in less than 5 years, is probably best to keep renting.
Why are some of the listings already "sold"?
One of our primary specialties is being able to introduce you to unlisted, unadvertised property opportunities. These very often are acquired through auction or court proceedings, and are not available for very long. We maintain a record of some past deals to give you an idea of what to reasonably expect in the future. Get in touch with us to see if we can introduce you to a suitable arrangement.
Are you brokers?
Tyton Real Estate is not a broker, real estate agency, leasing agency, or management company. Tyton can help introduce you to a broker or agency in the relative jurisdiction in which the property is located throughout the world. Contact us to arrange a no-hassle, no-obligation chat.
How do you get paid?
We’re an introducer service. If you talk to any of the people we recommend then they pay us a small referral fee, so please don’t forget to mention who sent you- we have kids to feed!
What are the advantages of whole building investment?
- Your vacancy risk is spread across multiple rooms right from day one. If you only own one room and it is empty, your revenue is zero. If you own an entire building with ten rooms and one is vacant, your investment is still operating at ninety percent.
- A portion of the closing costs can be deducted against your income tax the year of the purchase. For most clients this leads to an income tax refund
3. You become the owner of the entire building as well as the plot of land it is built on. This further contributes to the diversification of your investment portfolio.
What is the profile of the typical clients you work with?
We help people both inside and outside of Japan. Our non-Japanese clients who live in Japan include work-visa holders, spouse-visa holders, permanent residents and Japanese passport holders.
Japanese banks are pro-actively financing investment property deals these days, so if the investor meets the bank’s requirements, then it isn’t difficult to get financing. Initially, the most important factor for the bank is the individual’s salary but this is relative to the cost of the property in mind.
Do investment properties typically require renovation before they can be leased?
There are cases where a bank won’t finance a property unless restorations are performed by a professional real estate company. Using a trusted professional asset manager who handles this in-house can allow access to superior financing packages that clients wouldn’t be able to arrange on their own.
Do owners typically use a property management company?
The Japanese real estate market is very unique and so using a property management company is strongly recommended. We can recommend a full property and building management service, including English support with a dedicated team.
How easy (or difficult) is it to find tenants for an investment property?
Leasing is a seasonal activity that also depends on the target tenant for the building. For example, is the building mostly occupied by students of a local university? Is it a building with family rooms located in a bedtown? This is case by case.