Tokyo Tool
Rental ROI Calculator
Model Tokyo rental yield, net cash flow and total return. Accounts for 1.4% fixed asset tax, 0.3% city planning tax (Tokyo 23 wards), management fees, repair reserves and 20.42% non-resident withholding.
Residents 0-20% / non-res 40%+
Standard 1.4% on assessed value
Tokyo 23 wards: 0.3%
管理費 — typical ¥200-500
修繕積立金 — typical ¥100-300
5-45% progressive + 10% resident tax
Verdict
Weak
Tokyo prime yields 2-4% net
Gross Yield
4.20%
Net Yield
2.09%
On property value
Cash-on-Cash
-3.89%
Return on deposit
Annual Cash Flow
-¥622,704
Monthly Cash Flow
-¥51,892
Total ROI
6.66%
Cash flow + paydown
Monthly Mortgage
¥164,724
Annual Income & Cost Breakdown
Income
Gross rent (12 months)¥3,360,000
Less vacancy (5%)-¥168,000
Effective rental income¥3,192,000
Costs
Fixed Asset Tax (1.4%)¥728,000
City Planning Tax (0.3%)¥156,000
Management fee (管理費)¥252,000
Repair reserve (修繕積立金)¥144,000
Insurance¥80,000
Management (rental)¥159,600
Mortgage payments¥1,976,692
Income tax¥318,412
Net annual cash flow-¥622,704
Resident: net rental income is taxed at your marginal bracket (23%). You can deduct depreciation, interest and expenses before applying the rate. Assessed value used for property taxes ~¥52,000,000 (65% of market).
Long-Term Projection
Equity build-up and cash flow at 1, 5, 10 and 20 years.
| Year | Property Value | Annual Rent | Cash Flow | Cumulative Equity |
|---|---|---|---|---|
| Year 1 | ¥80,800,000 | ¥3,393,600 | -¥622,704 | ¥18,657,561 |
| Year 5 | ¥84,080,804 | ¥3,531,394 | -¥647,988 | ¥29,368,610 |
| Year 10 | ¥88,369,770 | ¥3,711,530 | -¥681,042 | ¥42,945,382 |
| Year 20 | ¥97,615,203 | ¥4,099,839 | -¥752,294 | ¥70,766,427 |
Tokyo Rental Market Notes
- • Tokyo central wards: prime yields 3-4% gross, 2-3% net. Outer wards and older buildings push to 5-7%.
- • Fixed asset tax + city planning tax sit on assessed value (~65% of market), not sticker price.
- • Management fees and repair reserves are per-sqm monthly — tower mansions can hit ¥500+/sqm.
- • Building depreciation is generous (RC: 47 yrs, wood: 22 yrs) — meaningful shield for resident investors.
- • Non-resident withholding of 20.42% is on gross rent. Tenants / agents are legally required to withhold.