So we are seriously considering buying a property in Kyoto as a vacation house and possibly being a Minpaku. We’re looking at Kyoto since we love the city both for ourselves, but also for friends and family to visit/stay. I’ve looked into Minpaku rules and would also hire a management company to handle all that if we can.
Are there any unique things I should be aware of? We’re looking around 40mm yen house that’s turnkey and know it would have to be all cash. I’m expecting about 150000 yen/year in maintenance costs if not used as a Minpaku (utilities, property tax, miscellaneous) which we can cover. Even if we do a Minpaku and is limited to 180 days, if we get about 50% occupancy we’d come out ahead I’m conservatively guessing.
We’re not really planning on appreciation, and just something we can keep in the family over time and also allow friends/family to enjoy. Even as a minpaku I figure it’d get us about 2-3% return.
Am I being unrealistic or missing anything major? Any thoughts on all of this would be great! We know this isn’t an investment property. It would be something for our family but if we can at least do something to generate some money when we’re not using it to recoup the cost of maintaining it, that would be ideal.
(edited to hopefully clear up it’s main purpose is for vacation and not investment.)
by hoku68