I am living and working in Japan and about to begin negotiations with my realtor on the above.
I think I need to ask for a selling price equivalent to $450K (i have entered the values in the calculator in rough USD (dividing JPY by 100) to give me a rough idea of the costs associated and where I need to go.
I have rerun the calculator with lower purchase costs up to $450K but I am not sure how to get the best value and therefore make the best offer. I believe the property is overpriced given I have a home in the same neighborhood that we bought 2 years ago for $498K.
Any tips on running the calculator? This property was built two years ago and the owner seems eager to sell...
Thanks in advance and look forward to you hearing from you.
Thanks Aaron for your reply - the property has only been up for abotu 2 months to my knowledge. Just happened to meet this guy at the right time as he was wanting to divest himself. So far he has only budged 10K. I put in an counter of $490K... now waiting . :)
Where did the amount for closing costs come from? $36,842 seems a bit high. And this is in addition to your down payment of $38,000. Also, $2,920 in monthly rents on a $500K property seems a bit low. I'm not doing a deal for that rate of return. Just an observation from a complete beginner myself here. Good luck!
@Bertram Martin - Also in Japan (Tokyo though but we are close) and would be happy to sit and review numbers with you if you want. Getting other BPers' thoughts is also good.
@Peter Hightower. hi Peter, thanks George feedback. I have read that Japan has traditionally lower rates of return but I am working to improve the deposit to counter this.
Also to answer your question, the $38K you asked about the encapsulates costs such as insurance, closing fee, and realtor fees and taxes.
I was rejected by the lender so I am going to give this deal some time to cool and see if he lowers his price, I raise more capital and I can confirm the bank loan your value ratio. Cheers