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 )