About Key money or Deposit

About Key money or Deposit.
There are a lot of troubles concerning with key money/ deposit. Last year there were over 10,000 issues about returning of key money/ deposit. After 4 years of stay during college days, The tenant has decided to leave his apartment on the end of March. Then he was advised by the landlord that owner will deduct 200,000 yen from key money/ deposit in order to change the wallpaper, repair of damage in closet door, and to clean the room.
The tenant was disappointed with it because the rental fee is 50,000 yen. But the owner billed 200,000 yen. So, he consulted to the public organization office. According to the organization, tenant have to pay the requested money in order to repair the wallpaper. Furthermore, When the tenant made lease contract with the owner, he agreed that he would pay money for cleaning the room.
The public organization office receives a lot of consultation orders especially in April and May. According to the organization, if tenant used the apartment normally and made some damage in minor facilities such as tatami mat, the tenant do not have obligation to pay for the repair.

Auction procedure summary

Auction procedure summary.
The Creditor usually initiates the auction. A typical example of creditor is usually from financial institution. Aside from this, there is Tax administration bureau and local executive branch (City Office, Prefectural government, etc.). When such kind of public office initiates the auction, it is called "Public sale". In case of auction and public sale, both process should be applied in the court office. The court office will request to appraise/ assess the real estate that is subject for auction and public sale. Then, the detailed article or document report will be created based on the appraisal/ assessment result.
During the bidding process, if no one bids within the specified bidding duration, it will implement the special clearance sale within a week after the bidding duration. Whatever amount offered by the purchaser will become a possible purchase amount.
Example, there is an auctioned property no. 100 (Year 2009). At first, the bidding duration is announced. Then, it will turn to a special clearance sale when there is no bid entries.
If no one gets the special clearance sale, a second bidding which is 30% lower than the clearance standard price will be announced. Then, second special clearance sale will be implemented in case of no bid entries on the second bidding duration. This process will continue upto third time bidding and special clearance sale.

No auction will be announced after the third time bid opening.

Calculating the appropriate bidding amount

Calculating the appropriate bidding amount.
It is necessary to secure more than 12% rate of return to have a successful property investment in Japan, Property investment becomes failure when a property is acquired through bank loans with monthly amortization costing more than the monthly rental fee revenues.
Rate of return is the recommended indicator to determine whether an investment property will succeed or not. To compute, first, divide the total property cost with 110% denominator. Then multiply the total monthly rent for the whole year with multiplier 80%. Note that our denominator is not 100% but 110% because of the additional 10% which represents the miscellaneous expenses incurred when acquiring the investment property. Meanwhile, our multiplier is not 100% but 80% because we deducted 20% which represents property tax, reserve fund for renovation, deficit incurred during periods without tenants, etc. It’s a rule of thumb that worst case scenarios should be assumed when embarking in an investment.
The standard rate of return when buying a property should be more than 12%.
Rate of return = Revenue from the monthly rental fee ÷ 110% of the total property cost
Sample Case Problem:
6-room apartment, with one room monthly rental fee amounting to about 38,000 yen
Budget for renovation is 2,500,000 yen.
Given the above condition, how much would be the appropriate bidding amount if the target rate of return is 15%?
Total Monthly rent:
38,000 yen x 6 x 12months = 2,736,000 yen
Net Income from the Monthly Rent:
2,736,000 yen x 80% = 2,188,000 yen
Cost of Investment:
2,188,000 yen ÷15%=14,592,000 yen
Deducting the renovation cost:
14,592,000 yen – 2,500,000 yen = 12,092,000 yen
Deducting the miscellaneous expense incurred by the auction bidding
12,092,000 yen÷110%= 10,992,000 yen
Appropriate bidding amount:
10,992,000 yen

Fujimi City Mizutani Higashi Special Auction Sale

This property had been sold out in a way indicated as follows:
As there is nobody attempted to bid, the court decided to change the auction procedure (whereas the bidding be held in a period of one week, and within that period the bidder with the highest bidding price will win the auction) and implemented a special auction sale bidding procedure (whereas the first bidder who can successfully bid on this auction within a week should be proclaimed winner)
Special Auction Sale Bidding Duration: September 14, 2009 until October 2, 2009
Case number: Year 2008(ケ) No. 397
Standard Selling Price: 3million 9hundred thousand yen (JPY 3,900,000)
Forward Purchase Possible Selling Price: 3million 136thousand yen (JPY 3,136,000)
Nearest station from the foreclosed property : Tobu Tojo Line, Shiki Station, 2.4 kilometers.
The property is situated 0.35 kilometers from Mizutani Higashi bus stop.Other train station near the property is the Yanasegawa station (1.77 km) of the Tobu Tojo Line.
In this case, there are 3 real state properties involved which are indicated as follows:
1.Fujimi City, Mizutani Higashi 3chome 3360-31
Propety Land area: 49.7 square meters
2. Fujimi City, Mizutani Higashi 3chome 3360-29
Property Land area: 14,54 square meters
3. Fujimi City, Mizutani Higashi 3chome 3360-31
Room floor area/space: First floor 37.26 square meters
Second floor 22.35 square meters
Date constructed: 1965
Court investigation revealed that there is a tenant on this property and the monthly rental fee is 70,000yen.
As the property is too old, damages were evident and it has extremely deteriorated. Also, the place receives poor sunlight as it is surrounded by houses.
Winning bidding price is 3million 136 thousand yen (JPY 3,136,000)
70,000 JPY x 12 / 3,136,000 JPY x 100 = 26%
Basically, the property is located in a quiet place yet tenants who are searching a place to live may find it inconvenient as the property is located far from the station. It maybe difficult to find a succeeding tenant once they get out of the property. However, it would become a good investment if the current tenant would not quit and continue on leasing out the property.
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PICTURE

Renovation of the property for investment

Remodelling Japan real-estate property for Investment.



Increase your investment idea. See how you can turn a real-estate property into more profitable investment. Personal sharing of a foreigner who just bought house and lot and make some renovations. Perfect idea for an investor.

TV Tokyo Interview on foreclosures

TV Tokyo Interviews 1-800-CashOffer.



Increase your investment idea. Topics Include prime borrowers headed to foreclosures, how the 1-800-Cashoffer Investing program works, and tours of homes being remodelled.

We offer free consultation using BIT Sikkou Website

We Offer free consultation of the information you want to search using BIT website. Just let us know of what district you are interested and the specific Ward, then we will give you concrete and detailed information.

The following are the simple guidelines on how to search foreclosed property using Bit Sikkou website.

Step 1: Go to the foreclosed property listing website http://bit.sikkou.jp/

This is where the Court Office publish the information on the available foreclosed properties for bidding.

Step 2: Select a Japanese prefecture to search for properties

When you access the main page you will see a scroll bar in Japanese. This scroll bar lists all the district court areas in Japan which are offering foreclosed properties. You can refer to the following list (in order as on Bit Sikkou):

1. Tokyo District Court

2. Yokohama District Court

3. Saitama District Court

4. Chiba District Court

5. Mito District Court

6. Utsunomiya District Court

7. Maebashi District Court

8. Shizuoka District Court

9. Kofu District Court

10. Nagano District Court

11. Niigata District Court

12. Osaka District Court

13. Otsu District Court

14. Wakayama-Nara-Mie District Court

15. Nagoya District Court

16. Tsu District Court

17. Gifu District Court

18. Kanagawa District Court - West Honshu

19. Toyama District Court - North of Tokyo, West of Nagano

20. Hiroshima District Court - South West Honshu

21. Okayama District Court - South West Honshu

22. Tottori District Court - South West Honshu

23. Matsue District Court - West of Tottori

24. Fukuoka District Court - Kyushu

25. Oita District Court - East of Fukuoka

26. Kumamoto District Court - South of Fukuoka

27. Miyasaki District Court - South East Kyushu

28. Sendai District Court - North East Honshu

29. Morioka District Court - North East Honshu

30. Akita District Court - North Honshu

31. Aomori District Court - North Honshu

32. Sapporo District Court - West Hokkaido

33. Hakodate District Court - South West Hokkaido

34. Asahikawa District Court - Central Hokkaido

35. Kushiro District Court - South East Hokkaido

36. Takamatsu District Court - Shikoku Island

37. Kochi District Court - Shikoku Island

Step 3: For example, if you want to select from "Aichi Prefecture", just select "Nagoya District Court Office" or "名古屋地方裁判所管内" then click "Go" button. The listings for Nagoya District will be displayed.

Step 4: Then, click the button under "Foreclosed Properties" or "競売物件情報』". Options, Lot property, house & lot property or others will be displayed.

Step 5: Select either or all of the three "土地、戸建て、マンション、その他" options just put a check on the left checkboxes. Please note that "売却基準価格" is optional selection.

Step 6: Under "Nagoya City" or "名古屋市", there are many wards or "所在地" are listed. As an example, you can select "Nakamura-ward" or "名古屋市中村区" then put a check on the left checkbox. Also, you have to select atleast one or all the options for "Transportation route" or "交通".

Step 7: Just check all the options for this selection "閲覧開始日（期間入札） 』と『閲覧開始日（特別売却） ". And then click "Search" or "検索開始" button.

Step 8: You can now see all the information of foreclosed properties in Nakamura-Ward.

If you are not confident enough to investigate the information displayed on the BIT website, just email us at keibai_assist@yahoo.com and we are glad to help you get more detailed information.

Sample of highly profitable property outside Tokyo

Projected yield: 61.8% (In case of bid at Clearance standard price)
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Nearest stations from the foreclosed property:
ＪＲ埼京線　南与野駅 (Minamiyono station) - 1.6 Kilometers
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PROPERTY DETAILS:
Clearance standard price: 1,333,555 JPY
Address: Saitama City, Sakura-ku (さいたま市桜区大字上大久保字東７０２番地３)
Category: Apartment
Room floor area/space: 51.63 Square meters
Current rent: 68,000 JPY
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PICTURE

Renting an apartment

Hello,everyone.
We know that some of you are planning to live in Japan. In such cases, you will look for an apartment to rent. But in order to rent an apartment, you are required to find a guarantor (who will pay your rent fee when you are not able to pay for it) who is currently living or working here in Japan.
Moreover, the landlords are not willing to rent out their apartment to foreigners. It is because they have impression that foreigners will just make noise, disturb and make trouble with other residents.
If you think you have enough money, why don't you buy an apartment? As you know, apartment rental fee in Japan is very expensive. In fact, you can buy real estate via forelosed property auctions in a very reasonable price. Many foreigners live in Minato ku. But I want to recommend that you should not live in such area for many inconvenient reasons. There are more comfortable and convenient places that you can consider. - Akiyama