Market Data shows a trend on the pricing of properties. But what can you actually buy? Find out what property you can buy with USD 100,000 in Tokyo. This time, the article features the Central Tokyo Area – Ikebukuro and Hongo. Ikebukuro is well-known for shopping and dining for the local and tourists. Hongo is known for a home of University of Tokyo, the best academic institution in Japan.
Due to the budget, the article focuses onto a studio condominium, located in the center with a proximity to a station. Due to its convenience, this type of property is always in demand – there is a consistent flow of renter (usually a single household, expecting easy commute and proximity from hustle and bustle) and it is making its investment return sustainable and attractive.
1. Maison Sunshine (Ikebukuro): USD100,400 / JPY 11,900,000
22.24 SQM+3.2 SQM balcony / Studio / 11F (12F) / Built in 1978
EXPECTED ANNUAL GROSS YIELD: 7.3%
Maison Sunshine in Ikebukuro is uniquely located on the top floors (8F-12F) of Sunshine Cultural Center. Located on the edge of Sunshine City, a shopping, entertainment, and dining hub, it is 5 minutes walk to Higashiikebukuro Station (Japan Railway’s Ikebukuro Station is 10 minutes walk away) – an attractive package for people who expects 24/7 funs.
As of February 2015, the same sized unit on the 9th floor rents out for USD 616 / JPY 73,000. (including JPY 5,000 management fee that a renter pays to cover the cost.)
Monthly management fee: USD 53 / JPY 6,300
Monthly reserve fund for building repair: USD 40 / JPY 4,770
2. GS Heim Ochanomizu: USD 99,600 / JPY 11,800,000
23.81 SQM+1.2 SQM balcony / Studio / 5F (8F) / Built in 1982
EXPECTED ANNUAL GROSS YIELD: 7.9%
GS Heim Ochanomizu is located right at the center – 3km away from Tokyo Station. Albeit its convenience (multiple train station access within 10 minutes walk), this particular neighborhood is very quiet – as if it is located in a suburb. University of Tokyo is a few blocks away – an ideal setup for renting out with a continuous flow of renters.
As of February 2015, this unit rents out for USD 654 / JPY 78,000.
Monthly management fee: USD 68 / JPY 8,190
Monthly reserve fund for building repair: USD 21 / JPY 2,570
Exchange rate: As of February 18, 2015.
Photo: Google Map