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This time, it was distributed on CONSPIRIT's official channel on YOUTUBE.Episode 39: Boost your quality of life with real estate management!I would like to send you the contents.

Today I would like to briefly explain the basics of real estate: "Types of real estate valuation - what are the five values of one item?"

About the Five Prices of One Thing

When we receive consultations from people who are thinking about getting into the real estate rental business, we are sometimes asked to know the surrounding market prices for buying and selling properties.
In the case of income-generating real estate, the purchasing price is often determined by discounting the capitalization yield, so it is difficult to say to what extent the surrounding market prices are useful as a reference.
However, I understand that you want to know the approximate cost.
So, who decides how much this property costs?

List of Five Prices of One Thing

As you may have heard, real estate is actually said to have "five prices," and there are multiple prices depending on who appraises it.

Here is a list of the five values:

①Official Land Price
②Standard Land Price
③Roadside price
④ Fixed asset tax assessment value
⑤ Actual price

Characteristics of One Item with Five Values

Now, let me briefly explain the features ① to ⑤.

①Official Land Price

The announced land price is the price of "standard land" announced by the Ministry of Land, Infrastructure, Transport and Tourism.
"Standard land" that represents the land price level in the area is appraised based on data as of January 1st each year and the results are announced in March.

It is an important evaluation that serves as an indicator for general real estate transactions, the basis for calculating the acquisition price of land for public works projects, and a measuring stick for various real estate appraisals.

②Standard Land Price

This is an indicator that is assessed each year by the prefectural governor regarding the "standard sites" selected by each prefecture.
Officially known as the "Prefectural Standard Land Price," it is based on survey results as of July 1st each year.

Like the official land prices, it is an index of official land prices, but while the official land prices are restricted to urban areas and their surrounding areas, the standard land prices are not, and therefore in a sense they play a "complementary role to the official land prices."

③Roadside price

Roadside land prices are the land prices calculated by the National Tax Agency or municipalities as the tax base for inheritance and gift taxes. The price is set for each road that faces the land, hence the name roadside land prices.

The one announced by the National Tax Agency is called the "inheritance tax road value," and the one calculated by municipalities is called the "fixed asset tax road value."

It is calculated based on the land price as of January 1st each year and announced in August. Both are linked to the official land price, and in the case of inheritance tax road prices, they are set to about 80% of the official land price.

④ Fixed asset tax assessment value

This is pretty self-explanatory, but it is the indicator that forms the basis for fixed asset tax amounts.
It is decided by municipalities and serves as the basis for not only fixed asset tax, but also city planning tax, real estate acquisition tax, registration and license tax, and other taxes.

Reassessment takes place every three years, and the year in which the reassessment takes place is called the "base year."

⑤ Actual price

This also literally means the price at which the transaction was actually completed, and can also be referred to as current market value.
This is the amount agreed upon between the seller and the buyer, and when people say "market price," I think they are referring to roughly this actual prevailing price.

Summary of the five values of one thing

It is not important to memorize the five values, but rather to use which values and logic and context when you consider a property. In other words, it only has meaning if you understand which indicators to use at the practical level of your landlord business.

Since these numbers are made public, I hope you will use them wisely to avoid making mistakes.

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