Thesis
The purchase price is not the cost.
It is the headline. The actual cost includes acquisition expenses, taxes, settlement adjustments, financing fees, ownership costs, and eventual exit costs.
Buyers who ignore this underwrite the wrong return.
Acquisition Costs
Typical costs may include:
- brokerage fee;
- registration and license tax;
- judicial scrivener fees;
- stamp duty;
- real estate acquisition tax;
- loan fees;
- insurance;
- management fee adjustment;
- repair reserve adjustment;
- fixed asset tax settlement.
The total varies by property, financing, and structure. It must be modeled before offer.
Ongoing Costs
For condominiums, monthly costs matter:
- 管理費 (management fee);
- 修繕積立金 (repair reserve);
- parking or bicycle fees;
- special assessments;
- insurance;
- property management.
For houses and land, costs show up differently: repairs, exterior maintenance, roof, utilities, tax, insurance, and sometimes road or neighborhood obligations.
Investment Costs
Rental property underwriting should include:
- vacancy;
- leasing fees;
- property management;
- repairs;
- tax filing;
- withholding tax if non-resident;
- debt service;
- future capital expenditure.
Gross rent is not cash flow.
Exit Costs
Selling also costs money. Brokerage, tax, early repayment fees, documentation, and currency movement can matter.
An investment that only works if exit costs are ignored does not work.
Kagura's View
We underwrite total ownership, not purchase price.
The right question is not "Can I buy it?" The right question is "What does this asset cost to acquire, hold, finance, manage, and sell?"
Apply this to a real property
Send us the asset or the brief.
We can review whether the property, structure, financing path, and exit logic hold together.