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In the case of condominium ownership

In real estate investment seminars and books, you often see "tax savings" listed as a benefit.
When expenses exceed real estate income, this system allows you to offset losses against gains in your tax return, resulting in tax savings such as income tax refunds and reduced local taxes.
It is true that this effect can be achieved, but the amount of expenses recorded, such as interest on loans and depreciation, will decrease year by year.

Depending on the age of the property and the amount of other expenses recorded, the tax savings effect is expected to be available for up to approximately eight years from the time of purchase.
In addition, depreciation expenses also affect the "book value calculation" when selling a property, so we recommend that you take this into consideration.

In any case, the "tax savings effect" is merely a momentary benefit that comes with the sale, so we do not recommend purchasing for this sole purpose.

In case of single-building ownership

In the case of an entire apartment or condominium building, the cash flow is large from the time of purchase, so in most cases taxes are paid within about three years of acquisition.
When you own a property that is profitable annually, you need to factor in tax payments as a cost.

In addition, an increasing number of people are considering incorporation in relation to owning an entire property.
This is also a useful tool to consider when thinking about how to deal with taxes.
However, there are some people who receive tax benefits from incorporation and some who do not, so please consult with your representative when purchasing.