Real estate buyers, do you buy cheap real estate and sell it at a high price when you resell it?
It is a simple question about real estate purchase.
Isn’t there a used car shop where you buy cheap and sell high
? I feel like a recycler looks at his feet in the first place.
I think it is a frank opinion.
Let’s consider the flow and cost until resale.
- Find a cheap property at auction. Sold for 13 million yen. The building is old but close to the station, in the Tokyo metropolitan area.
To fix the inside as a skeleton. 1.5 million yen cost
- There was a resident. Agreed to go out. Pay the moving price. Cost 550,000 yen
- There are non-payments such as management costs and repair costs. Liquidated because it became the owner. 400,000 yen
- Finally, the renovation is over and it is ready for resale. Sold for 19 million yen. It
costs 200,000 yen for advertising .
5, It is not easy to sell. An intermediary will come up with the desired price. 18 million yen.
- There is a separate fee. 500,000 yen.
- Other cost registration fees, income tax, borrowing to the bank and paying the first price,
so if you subtract the interest rate and miscellaneous expenses, you can clearly see that it will not be profitable.
It seems that real estate purchasers are not making much money than they think.
Read about me and my passions on my about page.
One thought on “Buying and selling profitable real estate”
Hi, this is a comment.
To get started with moderating, editing, and deleting comments, please visit the Comments screen in the dashboard.
Commenter avatars come from Gravatar.