INITIAL COST
Here is a case study for your understanding on the general costs at purchasing a property, taxes and the annual running costs.
Ex) Investing in a property in Minato-ku in Tokyo
Outlines of a property
- Location：Minato-ku in Tokyo
- Size：44.20㎡/2DK
- Built year：April in 1974
- Purchase price：24,000,000 JPY
- Annual Rental Income：1,836,000 JPY
- No Loan (paid by cash for the purchase)
| Purchase Price | 24,000,000 | A |
|---|---|---|
| Annual Rental Income | 1,836,000 | B |
| General Expenses when purchaseing a property | ||
| 1. Stamp Tax | 10,000 | tax |
| 2. Registration Tax | 91,000 | tax |
| 3. Judicial Scrivener Fee | 42,000 | |
| 4. Agency Fee | 842,400 | |
| 5. Fire/Earthquake Insurance | 39,800 | |
| 6. Property Acquisition Tax | 300,700 | tax |
| Sum | 1,325,900 | C |
| Annual Running Cost | ||
| 1. Maintenance Fee | 118,680 | |
| 2. Repair Fund | 109,680 | |
| 3. Fixed Asset Tax | 74,300 | tax |
| 4. City Planning Tax | 15,900 | tax |
| 5. Income Tax | 25,250 | tax |
| Sum | 343,810 | D |
| Gross Rate of Return | 7.65% | B / A |
| Net Rate of Return （After Tax） | 5.89% | ( B - D ) / ( A + C ） |
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