Know the basics before investing in real estate
Lately there has been a surge in the number of real estate-related books and seminars encouraging ‘salarymen’ to invest in one-room apartments as a way of securing an extra source of income. These promotional seminars were also very popular during the bubble in the late 1980s.
As a result, real estate listing site Rakumachi, which specialises in investment-type properties, has seen the number of registered users increase by 60% to 36,672 users over the 12 months to July 2014.
Low interest rates, a reduction in inheritance tax deductions from 2015, and concerns about a stable income after retirement are causing people to turn their attention to the property market.
But before parting with several million Yen, first-time investors must make sure they are fully aware of the potential risks involved. Rather than expecting quick and easy returns, investors also need to have a long-term outlook.Read more