Investment Property in Kobe

Investment Real Estate in Kobe

Kobe property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Kobe.

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Search Map of Kobe Investment Real Estate

Kobe ( KOH-bay; Japanese: [koꜜːbe]; officially 神戸市, Kōbe-shi) is the seventh-largest city in Japan and the capital city of Hyōgo Prefecture. It is located on the southern side of the main island of Honshū, on the north shore of Osaka Bay and about 30 km (19 mi) west of Osaka. With a population around 1.5 million, the city is part of the Keihanshin metropolitan area along with Osaka and Kyoto.

The earliest written records regarding the region come from the Nihon Shoki, which describes the founding of the Ikuta Shrine by Empress Jingū in AD 201. For most of its history, the area was never a single political entity, even during the Tokugawa period, when the port was controlled directly by the Tokugawa shogunate. Kobe did not exist in its current form until its founding in 1889. Its name comes from Kanbe (神戸, an archaic title for supporters of the city’s Ikuta Shrine). Kobe became one of Japan’s designated cities in 1956.

Kobe was one of the cities to open for trade with the West following the 1853 end of the policy of seclusion and has since been known as a cosmopolitan and nuclear-free zone port city. While the 1995 Great Hanshin earthquake diminished much of Kobe’s prominence as a port city, it remains Japan’s fourth-busiest container port. Companies headquartered in Kobe include ASICS, Kawasaki Heavy Industries, and Kobe Steel, as well as over 100 international corporations with Asian or Japanese headquarters in the city, such as Eli Lilly and Company, Procter & Gamble, Boehringer Ingelheim, and Nestlé. The city is the point of origin and namesake of Kobe beef, as well as the site of one of Japan’s most famous hot spring resorts, Arima Onsen.

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The financial stability of Kobe has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Kobe

Renting out your Kobe buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Kobeare – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Kobe and be prepared to change your initial outlook.
Thoroughly research the Kobe location with a special emphasis on fringe areas outside the main Kobe metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Kobe.
Ensure that your target investment property in Kobe appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Kobe properties yourself is an easy option, but are these savings justifiable when you run into Kobe red tape? Physis Realty Kobe office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Kobe buy-to-rent sector.

With our expert guidance, investing in Kobe provides the secure knowledge that your money is working harder than it would in a local Kobe bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Kobe, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Kobe property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Kobe

Flipping property in Kobe

Flipping property is when we advise clients to buy a Kobe property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Kobe market has a time to react to the renovation.

The Flipping Strategy in Kobe

Investment property flipping in Kobe is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Kobe real estate investments are sometimes referred to by professionals as ‘distressed’ Kobe real estate.

What is distressed Kobe property:

Kobe property in need of renovation
Kobe real estate with a change of puropose and use
Oversold Kobe property
Bank repossessions in Kobe

Put simply, long term investors in Kobe purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Kobe investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Kobe property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Kobe use a minimum profit value of 22% when looking at potential Kobe projects. The reason for this is because there are lots that can go wrong in Kobe property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Kobe

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Kobe, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Kobe should be entrusted to only the highest-quality agency.

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