Are you looking for a property that perfectly matches your requirements? ~The idea isn't to find a 100-point property, but to nurture it to 100 points~

Introduction

When I talk to people who are considering real estate investment in Sapporo, or those who are thinking about purchasing an income property, I often hear them say, "It's hard to find good properties."

Certainly, it's true that property selection has become more difficult than before, influenced by factors such as rising real estate prices and interest rate trends. However, when we actually listen to people's circumstances in detail, we often find that it's not that there are no good properties, but rather that they are looking for a "property that perfectly matches their criteria."

Real estate investment is by no means a cheap purchase. That's why I completely understand your caution.

However, if that carefulness goes too far, you might end up passing on properties you should have actually purchased.

For those of you considering real estate investment or purchasing income-generating properties in Sapporo, I'd like to share my thoughts on "finding the perfect 100-point property."

Properties that score 100 out of 100 are rarely found on the market.

Everyone wants the property everyone wants.

When people first start real estate investing, many picture ideal conditions.

Higher yields are better.

Newer construction is better.

A good location is also preferable.

It's better to have no vacancies.

Lower prices are better.

It's better to have financing that is easy to arrange.

That's a natural way of thinking.

However, properties that meet all these conditions are very rare on the market.

Even if such a property were to come on the market, many investors would want to purchase it.

We will also introduce real estate companies.

Investors with cash are also moving.

As a result, they sell out in no time.

In other words, a property that's a perfect 10 for anyone is a property that everyone wants.

Therefore, if you think, "Let's wait until a perfect property comes along," you'll end up unable to purchase one at all.

What's truly important is setting priorities.

If you try to have it all, you won't be able to buy anything.

When it comes to real estate investment, it's not about chasing ideals, but about clarifying what's important to you.

For example, if location is the top priority, an older building might be acceptable.

Conversely, if you prioritize the age of the building, you might be willing to accept a slightly lower yield.

If you prioritize price, you may need to accept some vacancy risk.

Rather than continuing to search for a property that meets all conditions, it's more likely you'll find a good property by prioritizing what's important to you.

Those who have been investing in real estate for many years understand that "perfect properties do not exist."

That's why, instead of just looking at the property's shortcomings, I'm looking at its potential.

Real estate investment doesn't end with the purchase.

The real competition begins after the purchase.

Beginners in real estate investing tend to judge properties based solely on their condition at the time of purchase.

However, in reality, real estate investment doesn't end the moment you purchase it.

Rather, the real start is after you purchase it.

For example, even with a vacant property, you may be able to improve the occupancy rate by reviewing your listing methods.

If a property has poor management, changing to an appropriate management company can lead to improved profitability.

If the rent is set lower than the market rate, increasing it to the appropriate market level can boost your income.

The impression of a building can change significantly just by how it's presented or how common areas are maintained.

Even a property that scored 80 points at the time of purchase can be brought closer to 90 or 95 points with proper management.

I believe having this perspective is extremely important in real estate investment.

The relationship with the real estate company is also important for purchasing a property.

To understand that properties close to the conditions will be introduced

Among those who invest in real estate,

Please only introduce properties that perfectly match my criteria.

Some people are thinking that too.

Of course, as a real estate company, we strive to introduce properties that closely match our clients' desired conditions.

However, in reality, properties that perfectly match the conditions are not always available on the market.

Therefore, in many cases, we will introduce properties that are "close to your conditions."

However, if you keep passing up properties like that, the real estate company will also

This might not be the right time to buy.

"We may need to organize the conditions a bit more."

comes to judge

As a result, the frequency of referrals may decrease.

Good properties may be introduced first to experienced investors.

It may be said that this is arrogance as a real estate company.

However, the reality is that there are always investors who consistently purchase and investors who make quick decisions.

When we also obtained property information,

This property seems like it would interest that person.

I have a customer in mind.

You have a history of transactions with us and understand our purchasing criteria.

Quicker judgment.

You'll get a quick reply if you contact them.

We naturally tend to prioritize sharing information with those individuals.

I am not giving you any special treatment.

This is the result of the trust we have built up over time.

Flexibility is essential when purchasing your very first property.

Those who are purchasing for the first time should be especially careful.

With no prior transaction history,

"Built within the last 20 years"
"The yield should be at least X%."
Within X minutes' walk from the station
"The price should be 〇〇 yen or less."

If you set your criteria too strictly and end up turning down every property that’s recommended to you, you’ll have a hard time making any progress.

Of course, you don't have to buy it if you don't want to.

However, as we sort out the priority of the conditions,

This is acceptable.

It's also important to keep this point in mind.

When you purchase your first property and build a relationship of trust with a real estate company, the amount of information and the quality of referrals you receive often improve subsequently.

We're not buying a perfect 100-point property either.

There is value because there are challenges.

Our company is also involved in the buying and selling of income-generating properties and real estate investment, primarily in Sapporo, but not all of the properties we’ve purchased so far have been perfect.

In fact, there may actually be more properties that have some kind of issue.

The issue of vacant units.

Management problem.

Repair problem.

Recruitment requirements issue.

There are various challenges.

However, if I understand the challenge and can determine that it can be improved, I will purchase it.

This is because the fact that there is room for improvement means there is potential to increase value.

Conversely, properties that are perfect in everyone's eyes also reflect that value in their price.

There is little room for improvement, and the potential for future revenue growth is also limited.

That's why we look not only at the current situation, but also at future potential.

The appeal of real estate investment that other investments don't have

You can increase your value through your own efforts.

I believe this is the greatest appeal of real estate investment.

When it comes to stock investing, it’s not easy to improve a company’s performance on your own after you’ve purchased its stock.

The same applies to mutual funds.

Basically, it depends a lot on the market and investment performance.

However, real estate investment is different.

You can also review management methods.

You can also improve the recruitment conditions.

Renovations can also increase a building's value.

This can also improve resident satisfaction.

In other words, owners can improve asset value and profitability through their judgment and efforts.

This is a characteristic that is rare in other investments.

That's why I don't think it needs to be perfect when you buy it.

Instead of looking for a perfect property, cultivate a property into perfection.

A long-term perspective is the shortcut to success.

What successful real estate investors have in common is that they don't look for perfect properties, but rather see the potential in properties.

Of course, you don't have to force yourself to buy properties with major defects or those that aren't viable investments.

However, by adopting the perspective of "This will improve if we make changes here" or "This challenge can be solved," the range of property selection greatly expands.

Rather than waiting for a property that perfectly meets your criteria, it's better to buy a property that's an 80% match and then work to bring it closer to 100% yourself.

There are many cases where that is a better investment in the long run.

summary

For those considering real estate investment or the purchase of income-generating properties in Sapporo, some may be hunting for properties that perfectly match their criteria.

However, opportunities to find such properties are not very common.

What's important is not to look only at the current state, but to have the perspective of what value can be created after the purchase.

Instead of looking for a perfect property, cultivate a property into perfection.

That's exactly what makes real estate investment interesting, and its major appeal, unlike other investments, wouldn't you say?

For those considering real estate investment in Sapporo, or those having trouble deciding on purchasing income-generating properties, we encourage you to view properties from this perspective as well.