Investment Property in Fukuoka

Investment Real Estate in Fukuoka

Investment Property in Fukuoka
Investment Property in Fukuoka

Fukuoka property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Fukuoka.

Search Map of Fukuoka Investment Real Estate

Fukuoka (Japanese: 福岡市, Hepburn: Fukuoka-shi, pronounced [ɸɯ̥kɯoka̠ꜜɕi]) is the sixth-largest city in Japan, the second-largest port city after Yokohama, and the capital city of Fukuoka Prefecture, Japan. The city is built along the shores of Hakata Bay, and has been a center of international commerce since ancient times. The area has long been considered the gateway to the country, as it is the nearest point among Japan’s main islands to the Asian mainland. Although humans occupied the area since the Jomon period, some of the earliest settlers of the Yayoi period arrived in the Fukuoka area. The city rose to prominence during the Yamato period. Because of the cross-cultural exposure, and the relatively great distance from the social and political centers of Kyoto, Osaka, and later, Edo (Tokyo), Fukuoka gained a distinctive local culture and dialect that has persisted to the present.

Fukuoka is the most populous city on Kyūshū island, followed by Kitakyushu. It is the largest city and metropolitan area west of Keihanshin. The city was designated by government ordinance on April 1, 1972. Greater Fukuoka, with a population of 2.5 million people (2005 census), is part of the heavily industrialized Fukuoka–Kitakyushu zone.

As of 2015, Fukuoka is Japan’s sixth largest city, having passed the population of Kobe. In July 2011, Fukuoka surpassed the population of Kyoto. Since the founding of Kyoto in 794, this marks the first time that a city west of the Kansai region has a larger population than Kyoto.

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The financial stability of Fukuoka has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Fukuoka

 

Renting out your Fukuoka buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Fukuokaare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Fukuoka and be prepared to change your initial outlook.
  • Thoroughly research the Fukuoka location with a special emphasis on fringe areas outside the main Fukuoka metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Fukuoka.
  • Ensure that your target investment property in Fukuoka appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Fukuoka

Flipping property in Fukuoka

 

Flipping property is when we advise clients to buy a Fukuoka property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Fukuoka market has a time to react to the renovation.

 

The Flipping Strategy in Fukuoka

 

Investment property flipping in Fukuoka is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Fukuoka real estate investments are sometimes referred to by professionals as ‘distressed’ Fukuoka real estate.

 

What is distressed Fukuoka property:

 

  • Fukuoka property in need of renovation
  • Fukuoka real estate with a change of puropose and use
  • Oversold Fukuoka property
  • Bank repossessions in Fukuoka

 

Put simply, long term investors in Fukuoka purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Fukuoka investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Fukuoka property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Fukuoka use a minimum profit value of 22% when looking at potential Fukuoka projects. The reason for this is because there are lots that can go wrong in Fukuoka property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Property Secured Investments is a Private Equity fund that invests in Fukuoka and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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