Foreclosure Property in Sakai, Osaka: A 7-Year-Old Wooden House with Investment Potential and Risks

This property, located at 875-5 Hamadera Motomachi 6-chome, Nishi Ward, Sakai City, Osaka Prefecture, is a wooden three-story residential house built in April 2019 (Heisei 31). It is currently listed for auction with a standard sale price of 9,020,000 JPY. The building has a total floor area of 70.28 square meters and is registered as a residence with a 2LDK layout. The land size is 70.3 square meters (approximately 21.3 tsubo).

According to agent notes and risk analysis, the current owner occupies the property, but it is being treated as an akiya (vacant house). Several important risk factors require careful consideration. There is a possibility of soil contamination, necessitating a detailed survey. The status of any remaining loans and security interests on the installed solar panels is unclear. City gas piping has not been connected to the site, requiring separate construction work if desired. A terrace-type structure on the second floor may incur removal or renovation costs. Furthermore, a washbasin is not installed, requiring plumbing work for the sink.

The property is situated in a First Category Medium-to-High-Rise Exclusive Residential Zone, with a building coverage ratio of 60% and a floor area ratio of 200%. The auction deposit is 1,800,000 JPY, and the maximum purchaseable price is set at 7,220,000 JPY. The estimated monthly rent for the area is approximately 70,280 JPY, leading to a projected surface yield of 9.3% based on the standard price, though this does not account for vacancy risk or additional costs.