Abandoned house

Can you get a loan for akiya investment ?

My latest YouTube video clip.

Japan real estate investment for foreign investors.

‘Can you get a loan for akiya investment ?’

Toshihiko Yamamoto
Real estate investing consultant and author.
Founder of Yamamoto Property Advisory in Tokyo.
International property Investment consultant and licensed
real estate broker (Japan).
He serves the foreign companies and individuals to buy and sell
the real estates in Japan as well as own homes.
He holds a Bachelor’s degree in Economics from
Osaka Prefecture University in Japan
and an MBA from Bond University in Australia

Toshihiko’s book, “The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage and Sell Real Estate in Japan”

is now out on Amazon, iBooks (iTunes, Apple) and Google Play.
About the book 
Amazon.com Link

Surrounded by the forests unique kominka houses close to skiing resorts and delightful onsen hot springs in Niigata prefecture : Only 80 mins from Tokyo

A relaxing, open plan space where each person can find their own way to chill out ?

Why don’t you try Niigata ?

Niigata prefecture is renowned for beautiful mountains and skiing resorts.

In addition, since Niigata is a major production center for high quality rice,  Niigata boasts many Japanese sake brands.

If you take Niigata shinkansen(bullet train) from Tokyo station, it takes only 80 mins to Echigo-yuzawa station.

From Echigo-yuzawa station, you can reach a number of delightful skiing resorts within one hour.

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10 mins from a lovely ski resort in Naganao : Akiya property samples

 

(Hakuba-dake in Nagano)
Do you want to get a taste of traditional Japanese country life where you can reach a gorgeous ski resort in 10 mins ? 
There are more than eight million vacant properties(it is called akiya in Japanese) in Japan and the number  of akiya is 
increasing. Recently we have received a number of inquiries from all over the world from people who want to buy akiya. In fact, searching akiya is not as easy as you might think because majority of akiya is not widely listed. You can find only a friction percentage of akiya online.
Today we pick up a few sample akiya properties in good spots in Japan.

1 Kyoto prefecture (one and half hours from Kyoto city center)
2 Chiba prefecture (close to the beautiful ocean)
3 Nagano prefecture (10 mins to a ski resort)
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Discover restful and super-affordable properties in Chiba Boso peninsula: Within easy reach from Tokyo

(Boso peninsula)

* Foreigners can buy a property in Japan without having special qualification.

Explore the charming houses by the lovable ocean and beach
New listings in Boso peninsula, Chiba prefecture!
If you live in Tokyo and want to buy a second house near the ocean and beach,  I always recommend Boso peninsula (Kamogawa city, Katsuura city, Minamiboso city, Tateyama city etc). The location is excellent and it takes only 1.5 hours from central Tokyo by car.
You can drive on a highway all through to Kamogawa city from Tokyo and there is no traffic. If you don’t want to drive and rather want to indulge in drinking a beer on the way, there is very comfortable express bus service from Tokyo station. The seafoods and vegetables are nice and fresh (In fact, Chiba prefecture is a major supplier of seafood and vegetables to Tokyo Metropolitan kitchens so nice foods you are eating in Tokyo are often produce of Chiba).  Izu peninsula area in Shizuoka prefecture is also very famous for nice beaches and onsen (hot springs) but Izu’s location is not perfect. It takes about 3.5 hours by car to Izu Shirahama beach from Tokyo. In the modern busy life, proximity matters.
In Boso peninsula, they have great surf in the pacific ocean and the quality of sea water is superb.  (Believe me you can’t imagine how good the quality of water is in Kamogawa city  which is merely 1.5 hours away from Tokyo). In 2020, Tokyo Olympics surfing competition will be held in Katsuura city. According to one of my surfer friends, Boso peninsula is the best surfing spot in Japan.
Today I picked up two interesting properties in Boso Peninsula, Chiba prefecture.


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Akiya (abandoned house) for sale, 50 mins from Tokyo : Is it really a good investment ?

* Foreigners can buy a property in Japan without having special qualification.

Japan has too many houses and there are more than 8 million empty houses/rooms here (which accounts for 13% of total number of properties).  Houses that are not used for a long time is called ‘akiya’ (空き家) in Japanese or ‘Empty house’ .Some home owners are virtually sitting on the empty houses doing nothing due to various reasons. And more and more individual investors are paying attention to this akiya market. 
In the light of Suruga bank scandal, Japanese banks are generally tightening their lending stance for the individuals investors.
Their business with institutional investors, of course,  are as usual but individuals investors are facing more challenging situation.
I am beginning to see more bogus-like hyperbole ads by rogue agents to lure the naive investors.
Please be careful and skirt such dangerous investment.
Individual investors are, in fact, shifting their eyes more towards akiya investment (abandoned house) because akiya investment does not require the large cash payment and offer the relatively attractive yield (return) . We recently spotted the following two properties in Chiba prefecture (Chiba prefecture is right next to Tokyo Metropolitan)  and are happy to share the information with you.
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The lure of Japan’s hidden treasures “Akiya” : Why are so many houses abandoned in Japan ?

Terrifying hidden crisis or treasures ?
In Japan, recycling is so much part of our culture.
And yet, it is also the norm for Japanese to demolish their houses with almost less thought than most people would give to disposing beloved ceramic bowls.
People believe homes are usually built to last 50 odd years. Japanese building culture is often described as ‘scrap and build’.
The reasons for this phenomenon range from the ageing to need for constantly updating building technology as it revolves.
With shrinking population, the result is a housing problem that is the opposite of what most countries face. Japan has too many houses that no one wants.
According to the government statistics, the number of vacant houses (空き家、akiya) in 2013 reached 8.2 million.
(But the 8.2 million includes houses/apartment units for rent that are only vacant temporarily as owners try to find tenants or buyers. So genuine empty homes that have been abandoned altogether number about 3 million)
Moreover, many who inherit a house are unable to sell them because of a shortage of interested buyers. The problem is particularly acute in rural areas.
According to one statistics, the top ten ranking of akiya in prefectures as of 2013 was as follows.
(The number indicates the percentage of akiya in dwellings of  each prefecture)
In these prefectures, 1 out 5 properties are empty.

1.Yamanashi   22%
2.Nanago        19.8%
3.Wakayama   18.1%
4.Kochi            17.8%
5.Tokushima    17.5%
5.  Ehime          17.5%
7. Kagawa        17.2%
8. Kagoshima   17.0% 
9.Gunma           16.6%
10.Tochigi          16.3%
10. Shizuoka     16.3%

(top10 ranking)

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Flipping akiya houses dependent on knowing costs, the local housing market : What is a key to success ?

(Tokorozawa station, Seibu line)

* Foreigners can buy a property in Japan without having special qualification.
Do you want to join the small handful of people who are doing the house flipping here ? 
Maybe we have got a better solution to abandoned houses problem in Japan.
Apparently h
ome flipping investment is a lucrative and fulfilling way to make thousands of dollars within a short period of time in US. But it can also be a difficult and frustrating endeavor when things go wrong.
And things will often go wrong. I have read about the stories that investors talk about the various obstacles in their way. Flipping homes requires hard work, persistence, and a great deal of patience,
because you’ll inevitably encounter problems in the process.
What about the flipping houses Japan ?
Since there are so many abandoned houses here in Japan, can we do something similar ?
The answer is yes and no.
Let me start with the background by quoting an article in The Japan Times.

Background
The Japan Times on December 26, 2017 says “Over 8 million properties across Japan are unoccupied, according to a 2013 government report. Nearly a fourth have been deserted indefinitely, neither for sale nor rent.
In Tokyo — where 70 percent of the people live in apartments — more than 1 in 10 homes are empty, a ratio higher than in cities like London, New York and Paris.
And that figure is expected to soar in the coming decades as deaths outpace births in a super-aging society where more than 1 in 4 people are 65 or older.

Nomura Research Institute, prominent research firm, projects the number of abandoned dwellings to grow to 21.7 million by 2033, or roughly one-third of all homes in Japan.
Meanwhile the population, which peaked nearly a decade ago, is forecast to fall 30 percent by 2065, creating an ever-increasing pool of uninhabited houses.”

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Waterfront century-old Japanese kominka (traditional Japanese folk house) in Atami, Shizuoka prefecture: How was it dismantled and transferred ?

 


(House)                                                              (Living room with ocean view)

I recently visited a beautiful Japanese kominka (traditional Japanese house,古民家) in Atami with
a business parter who actually renovated into the perfect condition.
The house was build only in 2017 but it used the old timbers from a century-old house in Nagano prefecture.
The current owner dismantled an old house in Nagano and transferred to Atami(熱海)and restored it completely.
Here is the
traditional Japanese style house and how it is restored.
Property


It sits in Atami in Shizuoka prefecture.
It has a great access; only 2 hours away by car from central Tokyo and about 80 km from Mt.Fuji.
It is the ocean view house where you can enjoy the sea breeze and spectacular Pacific Ocean and the Sagami Bay.
(See the map below)
Located on a high ground in good sun and good ventilation.
Land over 10,000 m2, building over 270 m2.
Front road 7.6 m and 3 parking lots (more space is available for parking lot)
The beautiful unique Japanese old folk house (called kominka ‘古民家’) sits at the foot of the Izu peninsula.
The grand waterfront house originally stayed in a family for more than 90 years in the mountain side of Iiyama city in Nagano prefecture, and it has been well preserved.

(Map)

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You want to flip akiya (abandoned house, 空き家) into a rental property in Japan ? : Please do the math first

 

(Flipped house in Chiba city, east of Tokyo. Before and After)

* Foreigners can buy a property in Japan without having special qualification.
Who can put a price on akiya (abandoned houses,空き家) in Japan ?  You can.
There are more than 8 million distressed or abandoned houses in Japan.If you want to flip these akiya (abandoned house) into a rental property, there are quite a few opportunities out there. Akiya in Japan is a big social issue as akiya can generate serious security issues like fire, weeds, pests and burglars. Investing in akiya in a sense solves social these issues.You can find the possibilities of getting a great deal very quickly at relatively small risk exposure. But you have to find a right property in a right location.
Here is how it works
In real estate business, you probably make your money when you buy a property not when you sell it. If you don’t buy the property at the right price and/or terms, then there won’t be any good profit when you sell it.The same phrase can be applied to your home.Even if your initial plan was to live in a property (your home that is) for a long time, life is full of unexpected ventures and you may have to sell it in the future.The real estate is contained in the relatively low liquidity dimensions compared with other financial assets such as stocks, bonds and the transaction costs are high.Thus you want to be very careful when you buy a property.This is true for investors to flip a property.
Usually house flipping in the US is referred as a short-term strategy i.e. buying and renovating a house and sell it at higher value in the short term. A flipper usually needs to get out in less than six months.However, in Japan, it is not a very common style.Today I am illustrating a Japanese style house flipping; flipping akiya (abandoned house, 空き家)into a rental property.You don’t have to stick to akiya for flipping but they are naturally very affordable to come by.One of our business partners is actively investing in akiya (abandoned house).Here’s a simple strategy we usually recommend for flipping akiya into a rental property.
Location
We usually locate a property in suburban areas of Tokyo where you can find a decent one for flipping.
You should be able to find an appropriate property in Kansai (western Japan) areas but we don’t cover those areas simply because it is too far to visit the sites.Read more

Are you interested in akiya 空き家(abandoned house) for free in Tokyo ?:How to find a house for almost nothing in Japan ?

(Okutama lake in Okutama town, Tokyo)

You can find “abandoned houses”  all over Japan, due to the country’s shrinking population.
The ministry of land, infrastructure, Transport and Tourist(MLIT) reported in 2013
that about 8.2 million (about 13.5% of total) houses and apartments were empty.

*
In fact, this 8 million number which often catches media attention is very misleading.
It includes the rooms and houses for letting.
Taking the fact into account, there are about 2.2 million akiya ‘real empty houses’ (abandoned houses)
in the market. Still daunting number in deed.

One report said vacant land and homes could by 2040 be as big as Japan’s northernmost island of Hokkaido—about 83,000 sq km (32,000 sq miles), or the size of Austria.
The area is currently about 41,000 sq km, slightly bigger than Japan’s southern island of Kyushu.
Many of Japan’s 8 million abandoned homes—or akiya(空き家)—are often left empty indefinitely.
Why do we have so may abandoned houses ?

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