Remove the advertisement for pumpkin carriage on Rakumachi. Beginners should know the frightening side of real estate investment sites.
I think many people use real estate investment information sites to look for investment properties.
Of course, even in a period when property prices are soaring like now,there may be good properties to 소개そして、there are also informative seminars and columns by real estate investorsI think.
However,it is very dangerous for real estate beginners to take real estate investment information sites at face value.
1. The Seminar Ads for "Pumpkin Carriage" on Rakuuta
For example, domestically it is said to be the No.1 in number of listed profitable properties“Raku-chi”.
Raku-chi has posted many seminar advertisements for the pumpkin carriage in the past, but after the pumpkin carriage incident (the sublease rent default issue of Smart Days that develops “Pumpkin Carriage” in a share house, and the fraudulent lending issue at Shouga Bank that funded them),they began deleting the seminar ads for the pumpkin carriage that had appeared on Raku-chi in the past.
And then,they have been continually updating articles criticizing the pumpkin carriage. Even though Raku-chi was earning ad revenue from seminars related to the pumpkin carriage.
Exactly how many people believed Raku-chi, took this seminar through Raku-chi, and bought properties... Nobody on the Raku-chi side is being held responsible for actively advertising. Yet the information providers also bear responsibility.
2. Raku-chi is not a “real estate expert”
Naturally,Raku-chi (more precisely, First Logic Co., Ltd.) is a “site operator” and not a “real estate expert”. The initial logic that “being a listed company makes real estate information reliable and high quality” does not hold.
From Raku-chi’s side,they advertise seminars that seem to attract people (they cannot scrutinize the content since they are not real estate experts), aiming to earn advertising revenue. Also, at timesthey write newsworthy articles to attract site PV and earn advertising revenue, which is their business model.
I think many beginners trust real estate investment information sites as-is.Understand their position and business model, and please be really cautious.
Now I think it’s better to wait and see in real estate investments. In that context, their promotion of real estate investing is becauseif more people don’t invest in real estate, their revenue would decrease.
3. Why real estate investment columns are updated daily
Also,some real estate investor columns with questionable content are updated daily through SEO by collecting articles on the Raku-chi site to generate PV and increase ad revenue.
If a column ranks highly, the columnist can receive compensation from Raku-chi, and since the algorithm tends to favor daily updates, many columnists update daily regardless of content.
4. Be careful with gross margin
Investment property search sites often advertise high yields like “Yield is X%,” but these aregross margins. They want to make the yield look as high as possible, so they use gross margins (the apparent yield).
The yield that takes all necessary expenses into account isnet yield (also called net yield), and generally net yield is lower than gross yield.
When you purchase real estate, in addition to the purchase price, you need costs such as registration fees, acquisition tax, brokerage fees, and renovation costs, and separately, yearly costs such asland and building taxes, insurance, recruitment costs, maintenance and repair costs, etc., sonet yield becomes even lower.
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Real estate investment sites do not disclose detailed net yields, butgross yield can vary greatly with just rent or asking price. From the gross yield, it’s clear that“this is a property you shouldn’t buy...”; there are many properties whose prices are too high (yields too low).
5. Summary
Real estate is not a cheap purchase. Especially for beginner real estate investors,whether it is okay to trust information from real estate investment sites is a very important issue.
The real estate industry has a very large information gap. You must learn on your own and protect yourself.For beginners, it may be wise to personally consider whether the advertisements and postings on real estate investment sites are trustworthy.
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