Risks

Opportunities and Risks in Tokyo’s 2024 Property Market: Insights from the UBS Global Real Estate Bubble Report for Foreign Buyers

 

Understanding Tokyo’s Real Estate Market in 2024: High Risk, High Opportunity

 

The UBS Global Real Estate Bubble Index 2024 delivers a comprehensive analysis of real estate markets across the globe,

evaluating the risk of real estate bubbles

by examining key factors such as price-to-income ratios, mortgage rates, and overall economic imbalances.

The report presents a mixed global landscape, with notable regional variations, and Tokyo emerges as one of the highest-risk markets.

For foreign investors interested in Japan’s capital, understanding the dynamics at play is essential for making informed decisions.

 

Global Trends in 2024

The overall risk of housing bubbles has slightly decreased for the second year in a row,

but this reduction is not uniform across regions.

Europe has seen a decline in risk, while Asia-Pacific markets have remained relatively stable, and risks have risen in the US.

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The Realities of Buying Unbuildable Properties(再建築不可) in Japan: What Every Investor Should Know

Understanding Unbuildable Properties

(再建築不可物件) in Japan

 

 

Unbuildable properties, known as “Saikenchiku Fuka Bukken” (再建築不可物件) in Japan,

refer to parcels of land where new construction is legally prohibited.

This restriction remains in place even if there is an existing structure on the land—once that structure is demolished,

no new building can be built.

These properties are often located in areas where modern building codes and regulations have evolved, making older properties

non-compliant with current standards.

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Asbestos in Real Estate: Understanding the Risks and Compliance in Light of Recent Law Changes

 

 

Asbestos in Real Estate: Understanding the Risks

and Compliance in Light of Recent Law Changes

 

Introduction

Purpose and Overview

In October 2023, new regulations made asbestos inspections mandatory for many property-related activities.

Understanding these requirements is crucial for anyone planning renovations or demolition.

Failing to comply with the law can lead to significant penalties, making it essential to be informed and prepared.

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Bridging Cultures in Property: Insights for Foreign Investors in Tokyo

 

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

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

 

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

 

 

 

 

 

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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Navigating Withholding Obligations for Foreign Investors: A Comprehensive Guide for Buyers and Landlords

 

Tax implications: When a non-resident sells

or rents out real estate in Japan

OLYMPUS DIGITAL CAMERA

 

 

(Case study)

 

In Japan, taxes are levied on residents (referred to as “residents”) regardless of nationality.

 

In this case, the income subject to taxation includes not only income generated within Japan

 

but also income from around the world.

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Japanese Real Estate Essentials: City Planning Law for the residential districts.

The city planning law, which was created by the ministry of land, infrastructure, transport and tourism, exist to regulate urban development.

The law divides all Japan into mainly two parts; city planning area which is regulated by the city planning law and the non-city planning area which is not regulated by this law.

The law defines 12 zoning districts within urbanization promotion areas.

Of these zoning districts, three have a primary effect on real estate projects residential district, commercial districts and industrial district.

Specific regulations for each district such as allowable use, building coverage ratio and floor area ratio are defined by the building standards law.

When you buy a property in Japan, it is very important to know which district your property exists.

Because each district is highly regulated by the specifics of city planning law(and building standards law)

and such regulations always affect the neighbourhood.

The law regulates the hight, allowable use, building coverage ratio, floor area ratio, type of the business and the size of the business and so on.

For example, you can not open a restaurant in category 1 low-rise exclusive residential districts.

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Charming resort mansions in Yuzawa area, Niigata?: Think twice

(Naeba ski resort in Niigata)

Sparkling ?

There are many resort condos in Yuzawa in Niigata for sale at a very reasonable price.

I found an interesting article about resort condos and would like to share the summary with you today.

 

After the burst of the bubble, the residents of the condominiums became elderly. 

Yuzawa Town, Niigata Prefecture, the Joetsu Shinkansen entered Ueno in 1985, and the entire Kanetsu Expressway was opened, becoming a tourist destination that attracts 10 million people annually. 

You can enjoy skiing and hot springs effortlessly from the Tokyo metropolitan area. 

In the bubble economy, 58 resort condominiums were built by 1993 with a total of approximately 15,000 units. 

According to real estate information company Tokyo Kantei, there are about 80,000 resort condominiums nationwide.

Yuzawa accounts for close to 20%.

 

However, the ski boom has gone, and prices have fallen due to oversupply.

About 30 years since the bubble, condominium users have also changed significantly.

According to the town, out of over 8000 townspeople as of April 2016, more than 1000 people registered the current address in apartments.

It accounts for 12% of the townspeople.

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