agents

Tokyo’s Real Estate Outlook 2024: Insights from NLI Research for International Investors and Residents

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Introduction

 

*Greater Tokyo transaction price and transaction numbers

(From NLI chart)

 

As a leading expert with 15 years of experience as a residential property investor and landlord in Tokyo’s real estate market,

Yamamoto Property Advisory offers unparalleled insights and tailored investment strategies

for foreign investors looking to navigate this dynamic landscape.

Our deep understanding from a landlord’s perspective enriches our advisory services,

ensuring that you receive the most informed and strategic guidance available.

 

The report from NLI Research Institute, a think tank of Nihon Life insurance group, dated March 22, 2024,

provides an analysis of the used condominium market in the Tokyo metropolitan area (greater Tokyo, including

Tokyo, Kanagawa, Saitama and Chiba)with a focus on the effects of financial policy changes

and market dynamics.

 

The used condominium market in the Tokyo metropolitan area has a significant impact on the overall real estate market in Japan

due to its large scale and influence,and because Tokyo is the center of economic activity in Japan. For this reason,

this market is considered an indicator of the entire Japanese real estate market.

 

 

Here’s a concise summary of the main points of the report.

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Bridging Cultures in Property: Insights for Foreign Investors in Tokyo

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1. Introduction

This article delves into a critical case study that surfaced in the real estate sector, highlighting not only the complexities inherent in property transactions

but also underscoring the indispensable role of diligent research and ethical practices in this field.

At the heart of our discussion is a real estate transaction that unraveled into a legal and ethical quagmire, involving a buyer, a broker, and a seller.

 

This case, which led to the administrative sanction of a broker for failing to return a deposit after a deal’s cancellation,

serves as a quintessential example of the pitfalls that can occur in real estate dealings.

 

The importance of this case extends beyond the specifics of its narrative.

It sheds light on a wider issue in the real estate industry: the necessity for transparency, legal compliance, and ethical conduct.

For potential buyers, sellers, and even real estate professionals, this case underscores the crucial need for thorough research and due diligence.

 

In an industry where transactions involve significant financial and emotional investments,

the consequences of neglecting proper checks and balances can be dire.

Our exploration of this case begins by setting the scene — outlining the key events as they unfolded,

and the roles and responsibilities of the involved parties.

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Beyond the Price Tag: Understanding Agent Responsibilities in Tokyo’s Property Market

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Case Study: The Imperative of Reporting All Purchase Offers

in Real Estate Transactions

 

In the Tokyo real estate market, the ethical and legal responsibilities of real estate agents are often tested in complex transactions.

A compelling example is a case involving the duty to report all purchase offers to a seller, even when these offers fall below the seller’s specified minimum price.

This case study provides vital insights into the professional obligations of real estate agents and the nuances of navigating client relationships.

This case study was created using an example published by the Real Estate Distribution Promotion Center, a public interest incorporated foundation.

 

Scenario: A Dilemma in Reporting Offers

Our real estate firm faced a challenging situation with a property listed for sale.

The seller, preparing for retirement, set a minimum sale price of 35 million yen for their 10-year-old single-family home, even though the asking price was slightly higher at 36 million yen.

The rationale was straightforward: the seller wanted to use the proceeds to partially repay the mortgage on their newly purchased condo.

The complexity arose when an offer came in at 34 million yen, facilitated by another agent.

In line with the seller’s initial instruction, we (agent) chose not to report this lower offer immediately.

This decision, made from a place of respect for the seller’s wishes, soon revealed itself to be a pivotal learning point.

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Investing in Japanese Real Estate through Mortgage Property Auctions: What Foreign Investors Need to Know

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Investing in Japanese Real Estate: What Foreign Investors Need to Know

Japan is a country with a rich history and culture, and its real estate market is no exception.

With its unique blend of modernity and tradition,

Japan offers a wide range of investment opportunities for foreign investors.

However, investing in Japanese real estate can be a complex process,

and it is important to understand the legal and

cultural nuances before making an investment.

As a real estate agent based in Tokyo serving foreign investors,

I have seen first-hand the potential for growth and success

in the Japanese real estate market.

In this article, I will share some key information t

hat foreign investors should know before investing in Japanese real estate.

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Understanding Key Clauses in Japanese Real Estate: A Guide for Foreign Investors

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Hello, dear readers and investors!

 

As a real estate agent based in Tokyo, I have the privilege of assisting numerous foreign investors

in navigating the intricacies of the Japanese property market.

Today, I’d like to share some insights on a critical aspect of real estate transactions in Japan

– the extension of settlement dates and loan cancellation dates in sales contracts.

 

This topic is particularly relevant for those planning to finance their property purchase through a housing loan.

 

In the realm of real estate transactions, it’s common for buyers to finance their purchases through housing loans. In Japan,

when a buyer opts for a housing loan, a specific clause, known as the housing loan clause (or loan cancellation clause),

is typically included in the sales contract.

This clause provides a safety net for buyers,

allowing them to cancel the contract if they fail to secure loan approval from their financial institution.

Now, let’s consider a scenario where the buyer’s financial arrangements are delayed,

leading to an agreed extension of the settlement date (the payment date) with the seller.

A question that often arises in such situations is – does the extension of the settlement date also imply an extension of the loan cancellation date?

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Reviving Japan’s Countryside: How Foreign Investors are Transforming Vacant Houses(akiya) into Opportunities

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Reviving Japan’s Countryside:

How Foreign Investors are Transforming Vacant Houses

into Opportunities

 

Are you an overseas investor or foreign national intrigued by the charm and allure of traditional Japanese homes?

 

If so, there is an exciting opportunity waiting for you.

 

As the appreciation for traditional Japanese architecture grows,

 

a promising trend is emerging that not only provides a unique investment opportunity

 

but also contributes to solving a significant societal issue in Japan – vacant houses.

 

Foreign buyers are increasingly attracted to these vacant, traditionally styled homes,

 

often located in the heart of Japan’s beautiful countryside.

 

Fueled by the rich cultural heritage encapsulated in these properties and a relatively lower cost

 

due to the weaker yen, this trend provides an opportunity for foreign investors to own a slice of authentic Japanese culture.

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Safeguard Your Investment: Understanding Bait Listings in the Japanese Real Estate Market

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Do you know ‘Otori-bukken’ ?

 

Truth be told,

 

We have to admit there are a number of

 

shady and dishonest real estate agents in Japan.

 

 

As a foreign investor considering investment opportunities

 

in the Japanese real estate market,

 

it’s crucial to be aware of the tactics some unscrupulous agents

 

 

employ to lure potential clients.

 

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Invest in Japan’s Cultural Heritage: How Foreign Buyers Can Transform Abandoned Akiya Homes into Profitable Ventures

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Invest in Japan’s Cultural Heritage:

 

How Foreign Buyers Can Transform

 

Abandoned Akiya Homes

 

into Profitable Ventures

 

 

As Japan’s population declines and properties go unclaimed, an emerging segment of buyers is seeking out

 

rural architecture in need of renovation.

 

There are about 8.5 million abandoned houses, or akiya, across Japan,

 

accounting for roughly 14% of the country’s housing stock.

 

This number is expected to rise as the population continues to shrink.

 

According to an article in NYT, Australian software developer Jaya Thursfield and his Japanese-born wife,

 

Chihiro, purchased an akiya for 3 million yen (about $23,000) after relocating from London to Japan.

 

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Unlocking Wealth in Japan’s Property Market: An Investment Roadmap for Affluent Individuals

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Discovering Lucrative Opportunities in Japanese Real Estate

 

for High-Net-Worth Investors

 

Introduction:

 

Japan has long been an attractive destination for high-net-worth individuals

 

who appreciate its rich culture, modern cities, and stunning landscapes.

 

As the yen continues to depreciate and real estate prices remain relatively low compared to other global cities,

 

now is the perfect time for investors with a net worth of 1-2 million

 

US dollars to explore opportunities in the Japanese property market.

 

Prime Locations:

 

While Tokyo is the most popular choice for foreign investors,

other metropolitan areas such as Osaka and Nagoya also offer attractive investment prospects.

For those interested in resort properties, Hokkaido and Okinawa are becoming increasingly popular choices.

 

Example Properties in Tokyo:

 

Minato-ku, Tokyo: A luxurious 2-bedroom apartment in the upscale Minato-ku district offers

 

investors a taste of cosmopolitan living. With a price tag of around $1 million,

 

the apartment offers a potential rental yield of 4-5%.

 

Shibuya-ku, Tokyo: A modern one-bedroom apartment in the vibrant Shibuya-ku area offers

 

a more affordable investment option at around $500,000.

 

The potential rental yield for this property is approximately 3-4%.

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Real estate investment in Japan : Beautiful Stories, Hard Realities

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Beautiful Stories, Hard Realities

Real estate agents/realtors are always holding seminars in Tokyo, Osaka and elsewhere, luring in amateur investors (for Japanese investors so far)

and telling them beautiful stories of how this person or that person got rich in the property market.

I never exaggerate such successes in my seminars, although of course they do exist.

Instead, I always tell the audience true stories from my experience and those of other clients and inexperienced investors, and in particular about the mistakes made.

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