Tag Archive for Real estste

Expect home sales to continue on a downward trend ? : Japan real estate market recap 2018

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Happy new year 2019 !　Year of Boar.

New year has just begun and I would like to quickly review the market using some statistics.
The data always tells you the fact. How to read the data is a key for success.
It is too early to know if housing is in another bubble in Japan (I don’t think so)
It will depend on what happens with the global economy. Unfortunately, bubbles are only recognized with 100 percent certainty
in 20/20 hindsight.

The national average standard price of land
According to the government announcement, the national average standard price of land (基準地価) published in September 2018
by the Ministry of Land, Infrastructure and Transport, land lots for all uses excluding forest lands nationwide
went up by 0.1% compared with the previous year, rising for the first time in 27
years since 1991. The average rate of residential areas was down 0.3% nationwide, falling for 27
consecutive years, but the rate of declines shrank 0.3% from the previous yearRead more

Priceless Opportunity : Magnificent House in Yakushima (World Heritage) and Huge Land for sale

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(View from the property)

One of my good friends in the industry has just listed a beautiful house in Yakushima.

The small, remote island of Yakushima, which lies off the southern coast of the southernmost of Japan’s four major islands, Kyushu, is shaped something like the Hawaiian isle of Kauai. And just as on that other circular bit of rock over 4,000 miles away across the North Pacific, visitors arrive here seeking respite in subtropical rain forests and mountains. (from NYT)

Situated in the sacred island, this sophisticated new construction is in the exclusive Yakushima island.
The property boasts 1932 square meters of forest land and the fantastic ocean-view.
The house is compact wooden with a toilet which is equipped with the natural disintegrator system.
You don’t need the sewerage.
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How the investment in a local city works ? : Opportunity to invest in center of Sapporo residential building. No down payment is needed

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(Night life Susukino in Sapporo)　　　　　　（Odoori koen)
No down payment is needed.
Remarkable opportunity in Sapporo is up for sale in Sapporo.
One of my business partners has come across a pretty good property in Sapporo in northern Japan.We don’t usually deal with a property in Sapporo.
However, as the project already has passed the provisional review by a premier Japanese bank, I am introducing it on his behalf.
Let’s find out how viable it is.
Oh, by the way, If you seek investment that can expect the appreciation of 20% over next 3 years,
Japan is not your destination. Please go and find a property in countries like Thailand or Vietnam.

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How to avoid the severe flooding in Japan ? : Over 200 people died in recent floods and landslides

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（From NHK)

Over 200 people have died in floods and landslides triggered by the recent torrential rain in western Japan in July 2018.

It is the highest death toll caused by rainfall that Japan has seen in more than four decades.

In Japan, 1300 municipalities released the hazard maps.

They namely pinpoint locations at risk of floods or landslides.

There was a time when the disclosure of hazard information raised many eyebrows as fanning people’s fears and lowering property values.

But after we saw the recent worst flooding disaster in west of Japan in four decades, this is no longer the case.

In the Mabicho district of Kurashiki, Okayama Prefecture, the flooded areas reportedly corresponded exactly to what the hazard map showed. To date, more than 40 bodies have been recovered from severely flooded residential neighborhoods, now blanketed with mud.

CNN report

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1.5 hour by car from the center of Tokyo, enjoy the magnificent ocean view adjacent to Pacific Ocean: Unspoiled real estate opportunities in Kamogawa

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(Sunset in Katsuura city)

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

The days with the ocean view spreading in front of you will make your time away from your busy city life. You can enjoy BBQ, parties etc in the garden with your friends.
Minamiboso area -Minamiboso city, Tateyama city, Kamogawa city and Katsuura city- in Chiba prefecture
can offer you such priceless time.
If you have never been there, you would be amazed to see the beautiful blue ocean.
Okinawa is better ?
Well, there is really no comparison.
I am not saying Kamogawa is the most beautiful in the world and have topped the list of dream holiday destinations.
There’s no doubting the allure of its perfect white sand beaches and swaying palms in Okinawa or Ishigaki islands.
But you can’t go to Okinawa every week.
Kamogawa certainly is a good place to get away from busy Tokyo and treat yourself to a view of the blue oceans, and wide skies.
In fact, in order to captivate the opportunities due to the recent market dynamics in private lodging law, I am seeking a property (house) to renovate and run as a hotel in Kamogawa right now.
Today I am discussing the viability of the investment in Kamogawa and surrounding area.

Where is Kamogawa ?

(Map from Tokyo to Kamogawa city)

Kamogawa (鴨川市 Kamogawa-shi) is a city located in Chiba Prefecture, Japan.
As of May 2018, the city had an estimated population of 32,789. It is a small city.
Kamogawa is near the southeastern tip of the Boso Peninsula, facing the Pacific Ocean, about 70 km south of the prefectural capital, Chiba City,
and about 85 km from Tokyo.
The area has a warm maritime climate with hot summers and mild winters.
(perfect for weekend villa or second house !)
Kamogawa is home to Mount Atago, which at 408.2 m (1,339 ft) is the highest point in Chiba Prefecture.

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

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(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（unused house) for free in Tokyo ?：How to find a house for almost nothing in Japan ?

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(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.

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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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Is Kyoto still good for investment in a vacation rental ? : Two boutique guest houses

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In light of the surging inbound tourists, Japanese and foreign developers and hotel companies  have stepped up construction, with names like Hyatt, Marriott, Nomura Real Estate Development and Mitsui Fodosan building new accommodations.
We have been increasingly receiving the inquiries from overseas investors about the properties in Kyoto for vacation rentals.
Generally speaking, lots of investments money to build the hotel and private lodging are flooding in Kyoto now from both inside and outside Japan and therefore the good properties with hotel license tend change hands very quickly.
There are very attractive investment opportunities for foreign investors in Kyoto properties.
I am going to discuss the opportunities of vacation rental in Kyoto today.
Let me start with the recap on the inbound tourism market in Japan, in particular, Kyoto.
The number of foreign visitors to Japan rose 19% to a record of nearly 29 million in 2017.
The government set the road to the target of 40 million by 2020 when Tokyo will host the Olympics.
Spending by foreign visitors rose 18% to ¥4.4 trillion ($40 billion).
Tourists have transformed the face of the nation’s cities, crowding into popular destinations such as the Ginza shopping area in Tokyo, temples in the ancient capital of Kyoto and ski
areas during the winter.
For example, the number of American visitors rose 11% in 2017 to 1.24 million which accounts for about 4% of the total.
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Real estate investment : Is Tokyo’s property bubble finally ready to burst ? (if any)

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The RECRUIT company (major Japanese real estate advertisement company)  released its own survey on people from greater Tokyo area (Tokyo, Kanagawa, Saitama and Chiba) who have purchased the newly built condominiums in 2017.
Over 4700 people responded.
Here is the quick summary of the report.
1. Location of condo purchased
Tokyo’s 23 wards increased its share slightly from 2016 to 43% and
20% of  respondents bought condos in “Kanagawa prefecture”. (ranked 2nd next to Tokyo 23 wards)
2. Price
The average purchase price of condos is 54.52 million yen,
(U$500,000), the highest since the survey started in 2001.
3. Trend in each prefecture
The average price in Tokyo 23 wards exceeded 60 million yen (U$545,000) for the first time since the survey began
4. Age
The average age is 38.6 years old and the households with children account for 45%.
5. Income and household
Average households total annual income is 9.44 million yen(U$89,000), Married couples account for 65%
Households with annual income of 10 million yen or more gradually increase, to 36%.  65% of households generate dual income (both husbands and wives working), the highest since the survey began in 2001.
57% of single-person households buy the condominiums within Tokyo 23 wards which is significantly higher than other households.

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Unpaid rent risk : Risks in private real estate investment in Japan (Part3)

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Obviously, getting tenants is a prerequisite for making money from your rental property. However, getting just any tenant does not guarantee your investment.
If you get bad tenants, you run the risk of your rent not being paid on time while repayment for loan and maintenance costs being accumulated.
Additionally, depending on how bad your tenants are, your rental property might get more damaged that normal use.
If you have a really bad tenant, you might even have to deal with an eviction.
Today I will discuss the risk of rent being unpaid and how to eschew the risk.
If you own investment real estate, there are expenses you have to pay monthly.
・Payment of administrative expenses · repair and maintenance.
・Monthly repayment for loan
If there is rent income properly every month
you can pay the above cost from the rent, but once the rent is unpaid your income statement will become negative.
How to deal with unpaid rent ?

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