Examples of Investment Property in Osaka for Sale

To help investors that want to buy Osaka investment property, we have reviewed three income-generating rental properties that are for sale in Osaka now. Our intention is to show actual examples, so investors can learn more about the types of property available for investment in Osaka, as well as the cost and quality of some specific investments.

When you are ready for a local agent that can find high-yield rental properties for investment in Osaka, contact us for more information.

There are much better investment properties available in Osaka. We can help you find them. For now, let’s get into some specific examples:
 

— Investment Category: House used as a multi-family rental property in Osaka
— Size: 117.46m2
— Year Built: 2011
— Price: 128,000,000 JPY
— Annual Rental Income: 2,940,000 JPY
— Rental Yield: 2.29%
— Price per Square Meter: 1,089,733 JPY

This property is an interesting example of a rental house investment in Osaka. This is a modern, 2-unit home; an example of a duplex for sale in Osaka. This is not a single-family home, but provides a different living experience for renters than a typical apartment building. It is a good example of low-cost multi-family property for sale within central Osaka City. The property is split into two rental units (one on 1F, the other on 2F), each currently rented; the rent is 2,940,000 JPY, or 245,000 per month (the 1F unit is 120,000 JPY, the 2F unit is 125,000 JPY). The rental yield is 2.29%.

Notes on the investment: This building is a simple, modern, clean Osaka rental property in an attractive neighborhood. The property is a Nishi-ku, Osaka, investment property, in the Chiyozaki neighborhood of Nishi-ku, on the east side of the Kizu River; it’s Nishi-ku, but not as ideal as the Horie area. The property looks to be in very good condition, with a plain concrete parking area, and no landscaping. It is located in a mostly residential neighborhood, a short walk from Masushima Park, but a longer walk to the nearest train station; Nishi-Nagahori Station is an 11 minute walk. This property could be a good opportunity for an owner-occupied investment; to live in one unit, and rent out the other unit to help pay for the cost of ownership. The units are currently both rented, and the property can generate cash-flow for a real estate investor. However, at 2.29% rental yield, it is not surprising it remains on the market; 2.29% is a very low rate of return for real estate investment in Osaka. While this looks like a nice property, it’s priced too high to be an attractive investment property.

This is a class “B” property, in a class “B” neighborhood. Would be a great place to live, or to own property; but not at that price. It does not appear to be a good investment (at the current price), but it is a good example of the category of smaller, multi-family rental property for sale in Osaka.

— Investment Category: Multi-unit investment property in Osaka
— Size: 181.44m2
— Year Built: 1989
— Price: 93,000,000 JPY
— Annual Rental Income: unknown (145,000 JPY for the top floor unit?)
— Rental Yield: unknown
— Price per Square Meter: 512,566 JPY

This is another interesting example of a relatively low-priced investment property in Nishi-ku, Osaka, in an excellent location. This is a 4+ unit building for sale in Osaka, listed as having four 1R units and a loft. We found some evidence the 4F unit has been listed as an office, for rent at 145,000 JPY per month. No annual rental income for this property is available. It is possible some or all of the units are empty. The building is old, but the location in the southwest corner of Minamihorie, Nishi-ku, is very nice; depending on the condition of the units, they might make good rental units for an Osaka property investor.

Notes on the investment: The location is very good; located a few minutes walk from both the Dontonbori River and the Kizu River. The street is mixed use; there is a bicycle store on the corner, and Hiyoshi Park is just a few blocks away. It is possible to be at Namba station in about 30 minutes on foot, or in about 16 minutes via Nishi-Nagahori Station (the nearest station). The building a very narrow, “straight-up” construction on a small lot (which is not ideal, but common for centrally-located property in Osaka’s most popular neighborhoods). In part because the building is so old, and in part as there is no rental income listed, it’s likely the units are not very attractive. Renovating the building might prove relatively expensive; tearing it down and starting over may be a better plan (but would add cost to the investment), and may have limited potential because of the small lot size.

This looks to be a class “C” (or perhaps “D”) building in a class “B” or class “A” neighborhood. This part of Nishi-ku is not exactly in the middle of prime real estate, but living or working in this part of Osaka would provide an excellent lifestyle, with direct walkable access to popular businesses and shopping in Nishi-ku. Excellent location.

— Investment Category: Mixed-use commercial/residential property for investment in Osaka
— Size: 123.08m2
— Year Built: 1967
— Price: 180,000,000 JPY
— Annual Rental Income: unknown
— Rental Yield: unknown
— Price per Square Meter: 1,462,463 JPY

This is a whole building for sale in Chuo-ku Osaka. The structure is a four-story building with a commercial space on 1F, and a single-family home (which occupies three, narrow floors) directly above it. The ground floor is/was a cafe. Floors 2F – 4F are a 4LDKS home (with an additional room for storage). The building could be rented as two separate units; 1F to a commercial tenant, and then with 2F – 4F as a home. While the price is listed, rental yield (or other investment income from the property) is unknown. It is possible the previous owner was an owner-occupied business; running the cafe downstairs, and living upstairs (enjoying a very brief “commute” to work). This property may have just dramatically decreased it’s price: we saw it listed at 280,000,000 JPY, and now see it listed at 180,000,000 JPY.

Notes on the investment: This is a very special property, in a legendary part of Osaka; a two minute walk from Dontonbori River and a five minute walk from Namba Station. The location is dead-center in the busiest part of Chuo-ku, with non-stop walk-by traffic (including noise late at night, as this is a “party” district). With a commercial space on 1F, there could be excellent potential for the right business. There is a separate entrance that leads upstairs to a three-floor, 4LDKS home. The property is very old, and is not in excellent condition. The property is so narrow, even rebuilding the property may have limited potential, but is a very rare investment opportunity for the right owner. The property could be a good bar (1F), with a nice owner’s residence above it. It could be converted into one continuous space for retail, or two separate retail spaces.

This looks to be a class “D” (maybe class “C”) building, in a one-of-kind class “A” neighborhood (not because it’s “nice,” but because it’s so unique, historical, and central).

When investors consider buying real estate in Osaka for investment, they often begin with the same questions: What returns are available from Osaka real estate investment? What is the purchase price for investment property in Osaka? The answers to those questions always depend on the type of property (condominium rental unit, single family home rental property, multi-family investment property in Osaka, etc), the location of the property, the age of construction, the quality of construction, etc.

In this article we have reviewed three examples of Osaka properties for investment. These examples provide some exact numbers for investors. From these examples, investors can begin to set some expectations about rental property in Osaka, and can prepare investors for what they might see when they work with a local broker to purchase Osaka property that can generate cash flow.

The examples presented here are just samples, and there are obviously much better real estate properties available in Osaka. To see better property, with higher returns, you should work with a local Osaka real estate broker. For an introduction, contact us.

This analysis uses specific examples of available rental investments in Osaka to help investors understand the market, prices, and return on investment from local real estate.

To provide more interesting comparisons in this analysis, we intentionally only focused on available property in the very central area of Osaka’s Chuo-ku and Nishi-ku wards. We also limited this review to small, multi-unit properties of four units or less.

None of the properties in this sample look to be particularly good investments, but they do help to highlight different types of Osaka property for investment. We will write separately about condominiums for investment in Osaka, but here we show that some Osaka multi-family property can be purchased at a lower budget. Larger, more traditional Osaka apartment buildings for sale exist, and may be better investments for investors that can fund those larger, more costly transactions.

There are websites in Japan that list real estate investment property for sale in Osaka. At HokkaidoAgents.com we publish a collection of websites that show property for sale in Japan. Separately, some real estate companies publish individual properties for investment, multi-family buildings for sale in Osaka, etc. The database of Japanese properties called REINS is also a good resource for property for sale (REINS listings can only be accessed by licensed Osaka real estate agents).

There are also websites that specialize in rental properties in Osaka, that only show real estate for investment. Those websites are almost always available in Japanese only, and they are very incomplete; they show only a fraction of the income properties that are actually available for purchase in Osaka.

Most investment properties in Japan are purchased “off-market.” The best properties for investment in Osaka are never listed online; the properties are bought and sold in transactions set up by individual Osaka real estate brokers, that can connect a buyer with a seller, and then that agent will use dual-agency in the real estate transaction to earn a commission from both sides of the deal. While double-ending the transaction can be a problem for residential real estate, it is an important part of what makes real estate investing in Osaka successful.

To work with a local Osaka real estate investment advisor, contact us.

Revenue-generating properties that are listed on public real estate websites in Osaka tend to have lower yield than properties that are never listed online.

Japan still operates in many analog ways, and in most cases, the brokers have rental properties that haven’t even reached the online market yet. Working with [brokers] not only streamlines the process but also opens up opportunities for off-market deals.”
— Anton Wormann, from the book Free Houses in Japan

Experienced agents will often try to buy the best properties themselves. When they do not want a property, or when they don’t have the capital on-hand to buy the property, they can find a buyer from their network of local contacts. If a property is listed online, it has first been passed-over by all the local insiders.

There are excellent investment properties with high returns in Osaka. Those properties are sold via the private relationships in the local community of brokers and Osaka investment property owners. Contact us for an introduction.

There are several real estate brokers in Osaka that have experience helping qualified investors identify and purchase profitable investment property in Osaka.

If you want to find property for investment in Osaka, get started by creating a relationship with a local broker in Osaka. Have your funds available, and show the broker you can communicate well and close quickly. If you can demonstrate you are ready to be a good client, local agents will work harder to find you better properties, including some of Osaka off-market rental properties for sale.

For More Information:

— See our guide to buying investment properties in Osaka
— We show several different types of real estate investment in Osaka
— Off-market Properties in Osaka

See also:
— Examples of real estate investment properties for sale in Sapporo, Japan
— Different Real Estate Investment Opportunities in Sapporo
— A review of several income-generating rental properties in Kobe, Japan
— A guide to the concept of Domestic Contacts in Japanese Real Estate
— Services that Help Foreigners Buy International Real Estate
— See our piece about various Taxes in Japan
— Our detailed Guide to Paying Property Taxes in Japan

And also:
— Books about real estate in Japan
— Book about investing in apartment buildings
— A review of Berges’ The Complete Guide to Buying and Selling Apartment Buildings (2005)
— Details of special zone minpaku in Osaka