[Don't be fooled by a 'quiet residential area'] For your first real estate investment, look in an area you are familiar with!

★Area scope

Now, last time,
I talked about the price range that investment beginners should target.

This time, I will explain the particularly important

'area'

and how to choose it, as well as the
reasons why.

As for where you should choose the area for your first real estate investment,
I would say,

I suggest, "first, start by looking in an area you are familiar with"

as your starting point.

An area where you were born and raised,
or a range not too far from where you currently live.

Places you are familiar with from commuting to school or work, etc.,
not just geographical information, but also

the atmosphere of the town, the locations of major stations, supermarkets,
hospitals, and the demographic of the people living there,

it is best to choose a place where you have
information that you can only know by actually living there.

In terms of distance,
a round trip by car, train, or bus
within 2 to 3 hours, perhaps.

Within that range,
it is easy to regularly inspect the property, and

if any problem occurs,
you can head to the site immediately.

Of course, when trouble occurs,
the management company will handle it, but

if possible, it is better for the owner to be present as
they can sometimes provide more appropriate responses, and
above all, it increases your experience as a real estate investor.

★Don't be fooled by a 'quiet residential area'

There is another reason why
it is good to choose an area you are familiar with.

On online portal sites,
when introducing the state of a certain area,

a significant percentage of the time,
it is described as a "quiet residential area."

This term "quiet residential area" is
a really convenient phrase,

no matter what kind of place it is,
if you describe it as a "quiet residential area,"
it is not technically incorrect.

For example, to someone who knows the region,

rather than a "quiet residential area,"

"a depopulated town that has lost its vibrancy"

might be a more accurate description.

However, that being said,
it is not as if "quiet residential area"
is a completely wrong expression either.

Therefore, so as not to be misled by
the descriptions on property listing sites,
it is better to choose a place you are familiar with.

★Would you live there for that rent in that area?

Furthermore, if you are familiar with the area,
you have the advantage of being able to easily grasp rent market trends and demand.

"Would I rent that property in that area for that rent?"

You can apply that tenant perspective
to your own thinking.

Also, in an area you are familiar with,
you can intuitively understand what kind of demographic has demand there.

For example, you can narrow down the target audience to some extent,
such as single people,
families, or students.

Furthermore, you have the advantage of being able to easily predict the future potential of the region,
such as development plans, population changes, and the construction or closure of major facilities in that area.

This is a quite important point.

For example, places where the population is increasing,
or regions where development is likely to progress in the future,
will have higher property asset values, and

This will be advantageous when you sell the property in the future.

However, in most cases, property prices in such areas are already high.

★ Reasons to narrow your search to areas you are familiar with

To summarize.

When choosing your first real estate investment property,
you should target an area you are familiar with.

The reasons for this are:

First, if it is a place you know well, you can deeply understand the local atmosphere and lifestyle,

and evaluate the property without being misled by online information.

Second, if the investment property is nearby, you can respond immediately if any problems arise,
and it becomes easier to gain experience as an owner.

Third, because you understand the characteristics of the region,
it becomes easier to set appropriate rent and
predict what kind of tenant demographic there is demand for.

Finally, because you can quickly detect local changes that affect property value, such as development plans and population trends,

it will also be advantageous when selling.

That is all.

While building up your own capital,
please think about what kind of area you would like to expand your
real estate investment into in the future.

Next time, I will talk about location.

Thank you for reading until the end.

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