APARTMENT MANAGEMENT

Information for investors (real estate investment)

Real estate investment in the form of apartment management
that achieves the formation of prime assets

Rental-housing management of a multi-unit dwelling (apartment house, etc.) is an effective method for land utilization. Rent levels and occupation rates are resistant to impact from economic trends, and building construction can also provide tax savings with respect to inheritance and fixed asset taxes. It is possible to create a stable source of income.

Merits of mansion management

1Stable long-term income
With an apartment house, you can obtain cash rental income every month. This is a strong point not found in other investments. Since rental income can provide a stable income over the long term, it can serve as a substitute for a personal pension in old age. An apartment house also brings future peace of mind as it can be a substitute for life insurance and a prime-asset inheritance for children.
2Reduction of fixed asset taxes
and inheritance taxes
Fixed asset tax reduction measures are not available if land is held in the form of a vacant lot or parking lot, but fixed asset taxes can be reduced to one-sixth of the previous level by building an apartment house. For inheritance taxes, the building of an apartment house results in an appraised-value reduction of 30% for buildings and 18-20% for land.
3Formation of prime assets
Points in favor of real estate investment as compared to other investments such as stock are that there is no risk of the company going bankrupt and the market is stable since rents are not subject to large fluctuations. In addition, the only investment for which banks will loan money is real estate investment. Now is a particularly good time as interest rates are low. The ability to form prime assets at a high speed is one of the best features of apartment management.