Evaluation of Investment in Old Detached Houses in the Modern Era

Articles published in Akiya Lab | Roopt (Makigumi)

Makigumi, which operates Roopt, regularly researches case studies and other information on the revitalization of vacant houses and publishes them as columns.

The landscape of real estate investment is undergoing significant changes due to recent developments. At the heart of these changes is the emerging need for new evaluation criteria. This article delves into the modern judgment criteria that investors, particularly those like Gaiax and our company Makigumi, emphasize.

Modern Investment Judgment Criteria

Today, it is no longer about traditional collateral-based judgments, but rather about discerning market trends and the potential value of a property. For example, actively considering investments in properties with a gap in market price is key to finding new opportunities. This is a point we hope financial institutions will understand, and we expect real estate agents and investors to provide information and proposals for such properties.

Scope and Focus of Investment

Our company focuses on old detached houses and wooden buildings priced between 10 million and 30 million yen. We exclude buildings and apartment complexes, primarily considering disadvantaged real estate in rural areas. We believe these properties, often overlooked, hold high potential with proper evaluation and utilization.

New Value Judgment Criteria

In addition to conventional criteria, property evaluation should consider how much value the property can generate through feasible business operations. Beyond the basic value assessment of the property itself, including the rental market and post-renovation usability, the value as a business must also be emphasized.

Local Community and Business Models

Contribution to the local community and the development of business models rooted in that community are also important evaluation factors. Within the framework of the sharing economy, new business models such as vacation rentals and share houses can be introduced. Such approaches can unlock new value in real estate, potentially benefiting both investors and the community.

Summary

Decision-making in real estate investment requires not just evaluating a property, but also discerning how that property can generate value as a business. It is essential for financial institutions, real estate agents, and investors themselves to share this new perspective and make investments that lead to a better future in today's real estate market.

Source: Akiya Lab