Hi all
I've been contacted by BRI (like a few people on here according to search). The first few places they showed me were pretty 'meh', but they came back to me a few days ago with a new building that is actually in a good location (good location in Setagaya-ku).
BRI is a company that focuses on quickly building projects all around Tokyo, usually with units that are about 25-35sqm big. So, mostly small boxes. I've been to some in person, and they are solid and pretty nice.
What BRI also does is, they provide 'full support' for everything from finding a tenant, handling management and providing support for filing for tax benefits. So the appeal here is that I don't have to do much besides paying a fee of around ~20k JPY per month, and the rest is taken care of.
They also have this other system where they guarantee you 90% rent (you cover 10%), but you will always get that 90%, no matter if a tenant is living there or not.
You make money mostly through the tax benefits, and then of course if the building appreciates (IF!). Besides that, there is ongoing cost for management each month.
But – those places are popular. Their projects usually sell out within 1-2 weeks, partly also because they are very aggressive in selling.
Good points:
- Not having to think much about the handling, and reduced financial risk because of the 90% guarantee system
- Tax benefits that are actually substantial
- Good location (for this unit)
Not good points
- The rent they charge for these places is too high for a 25sqm unit, and I have my doubts people would actually rent it. They have explained to me that the target are salarymen that get rent support from their company if they live closer to the office, which does make sense
- However, I checked some previous units on suumo and I never see numbers of what they charge
- Then again, does that matter when using the 90% rent guarantee thing
- 25sqm is tiny, can I actually resell that in 10-15 years? however location is this time pretty good
- Constant ongoing cost, only revenue coming in is from tax benefits that offsets the cost
So I'm wondering what the opinion here on those is. Is it worth looking into these things from a investment perspective?
/EDIT:
related
by ZookeepergameThis153