Buying a property is a life goal; it is personally rewarding for you and your family and, in time, under the right circumstances, can be financially beneficial. Buying a property as an investment by becoming a landlord is very different.
Owning a rental property as an investment has its rewards, but...
It comes with its problems.
- How do you know it's a good investment? Are you buying in the right area at the right time?
- Is the property protected? With environmental conditions becoming more extreme, is it affected by events such as flooding.
- Which vendors and 3rd party companies do you need to work with? Who can you trust for legal matters, or where can you find a good management company?
- How best to look after your tenants, keep them happy but also make sure they pay their rent and look after the place
Is it a good investment?
You want to invest in a property that holds its value and attracts high-quality and trustworthy tenants, and the value will grow in the long run.
Will it be protected from natural disasters?
Sadly, it's a question we have to ask ourselves now. Every country is different; you may live in a place where earthquakes do not need to be considered but with increasingly volatile weather events not typical of where you live can be devastating.
Investors must thoroughly investigate any property to verify that construction meets the new building code standards and that the location is not prone to flooding from tsunamis or typhoons.
Selecting and dealing with 3rd party companies?
There are plenty of dependable people you will need to rely on, whether it be accountants, legal, maintenance and so on. Often, the best are found through word of mouth, but there are online resources, too, like Zillow.com or realtor.com. Always make sure the company is registered with the regulatory organisation that manages their industry's standards and that they are insured. Obviously, they come with fees, and these fees are paid out from the income to earn
How to look after tenants, collect rent and make sure they are looking after it?
A good property management company (see above). This comes at an extra cost.
Why is MoreHarvest easier than doing it myself?
All the above is taken care of. We have years of good relationships working with the right vendors and know our market, so we can build for the type of tenants we want to work with.
As we specialise in Japanese property, we also have the language and cultural experience that would be major barriers to investing in Japanese property yourself. You do not need to re-learn what we already have.