Buying property in Japan

[TJOZ]

I thought I was a member here but possibly a lurker for a couple of years so if I haven`t joined here before, sorry for perving. I am currently in Japan looking at properties here and just wondering on other peoples experiences. Some of the prices we have been quoted include such things as Registration tax, Real estate acquisition tax and brokerage fee`s. The prices we have been quoted seem to be quite large and I was wondering of other peoples experiences.
Cheers TJOZ

[Yokan]

Where in Japan though?

Tokyo is very VERY deer, wouldn't advise any property there.

[King_Nakamura]

Вы Белорус?

[laplage]

Originally Posted by TJOZ

I thought I was a member here but possibly a lurker for a couple of years so if I haven`t joined here before, sorry for perving. I am currently in Japan looking at properties here and just wondering on other peoples experiences. Some of the prices we have been quoted include such things as Registration tax, Real estate acquisition tax and brokerage fee`s. The prices we have been quoted seem to be quite large and I was wondering of other peoples experiences.
Cheers TJOZ

how exactly did you start that process. i'm actually looking to buy a piece of land in rural japan (started my research last week) and i'm looking for a guide on how to do this. hopefully you know of a book that i could buy?

thanks

[laplage]

Originally Posted by Yokan

Where in Japan though?
Tokyo is very VERY deer, wouldn't advise any property there.

Yokan, 'expensive' is very relative.

See this as your economical lesson for the day.

Let's say you pay $1million for a building in Tokyo and you pay $200,000 for a building in Nigeria.

The building in Tokyo is rented out to someone who pays you $200,000 per year in rent. This means that within 5 years (5 X $200,000 = $1million) you have paid off your building.

The building in Nigeria is rented out to someone who pays you $20,000 per year in rent. This means that within 10 years (10 X $20,000 = $200,000).

Now, if you can get your original cost paid back in 5 years or 10 years, which one would you choose? Obviously the answer is 5 years. This shows that the $ price of something does not reveal to you if it is 'expensive' or 'cheap'.

These numbers were made up for illustraion. In reality, you would only receive about $40,000 a year for rent in Tokyo (this can also be denominated in a percentage form, in this case 4%, which is $40,000/$1million, which is known as the 'yield' of an investment).

If this sounds condescending, please excuse me as it was not meant to be.

By the way, this illustration can also be used to talk about stocks, a stock that trades at $100 may or may not be more expensive than a stock that trades at $10. It all depends on what you get when you buy that stock.

[Windy]

Originally Posted by laplage

i'm actually looking to buy a piece of land in rural japan (started my research last week) and i'm looking for a guide on how to do this. hopefully you know of a book that i could buy?
thanks

There is very little information in English on buying a house in Japan.
http://www.foreclosedjapan.com probably has the best prices because they help you buy auctioned land, houses, and apartments in Japan in Tokyo, Yokohama, Nagoya and Osaka. If you want countryside, you can ask them.
www.realestatetokyo has good info on the process and taxation.
There are a few other articles and sites on the web.
There are no books in English that I know of that deal with purchasing real estate in Japan.

[acquiredtarget]

There's this post over at Danny Choo's website about buying a house in Tokyo. Probably not what you're looking for though.

[Mike Cash]

Could those of you outside Japan please elaborate on why you plan to purchase property here?

[Uncle Frank]

Originally Posted by Mike Cash

Could those of you outside Japan please elaborate on why you plan to purchase property here?

Maybe a secret agent for Walmart?

Uncle Frank

[Windy]

Originally Posted by Mike Cash

Could those of you outside Japan please elaborate on why you plan to purchase property here?

I'm in Japan.

Would you still want to hear my opinion on why people outside of Japan would want to buy?

[caster51]

If you want a Japanese coutryside....?
http://www.gaijinpot.com/bb/showthread.php?t=26179
http://kenelwood.wordpress.com/

[acquiredtarget]

Originally Posted by Mike Cash

Could those of you outside Japan please elaborate on why you plan to purchase property here?

I'm not planning on buying property

[senseiman]

This place specializes in properties in the countryside. I'm not vouching for the company, but the page has some listings with pics that are fun to browse through:

http://www.furusato-net.co.jp/form/open_01.html

This one also has some:

http://www.asahi-net.or.jp/~ut7h-Kwgc/asahi/index.htm

[Mike Cash]

Originally Posted by acquiredtarget

I'm not planning on buying property

Then I wasn't speaking to you. Was it that hard to figure out?

[acquiredtarget]

Originally Posted by Mike Cash

Then I wasn't speaking to you. Was it that hard to figure out?

Apparently so. Hmmmm, maybe I need to drink the coffee first.

[Shouganai]

A person suggested that Japanese property is expensive. That is a nonsense. It is VERY cheap in the countryside. In fact if you want a paradox, it is the cheapest place to buy property in the world, quality for quality basis. Of course you can get a straw hut in the Phillippines on cheap land for $400. But if you want a quality, modern house in the Philippines you will have to pay P2 mil ($40,000) on quality parity to what is available in rural Japan. Why you ask?
Because:
1. Travel cost in Japan is expensive
2. Lack of holiday time in Japan
3. Lack of holiday culture in Japan
4. Lack of jobs in rural areas
5. Excess housing stock in rural areas because of rural depopulation.
6. Higher levels of insolvency in rural areas
There is even more housing than is available on the market. There are houses literary just sitting out there not being used. Some are older than others. You can buy a place for as little as $10,000. Search for the Bit Sikkou website because it give you access to foreclosed property, and SheldonThinks site for info on how to bid, strategy to apply. I bought 2 places and bid on several others. Don't get me wrong buying in the Philippines makes sense as well, just for different reasons.
I actually looked around the world and concluded that Japan was the cheapest place to buy property. You can tell people you have a house in Japan, but it could be worth only $10,000 in some rural location. OK not near Tokyo, but it need not be a terrible location. Wakayama or Hokkaido perhaps.
I bought one for $28,000 in Western Tokyo, one for $38,000 in middle Saitama, each 1-1.2 hours to Ikebukuro(Tokyo). It does not have to be in the remote areas, but you will pay more.

[gaijinalways]

I bought one for $28,000 in Western Tokyo, one for $38,000 in middle Saitama, each 1-1.2 hours to Ikebukuro(Tokyo). It does not have to be in the remote areas, but you will pay more.

How long ago did you buy these? How far away are their from their perspective stations? Sounds a little too cheap for houses in those areas named.

[Shouganai]

Originally Posted by gaijinalways

How long ago did you buy these? How far away are their from their perspective stations? Sounds a little too cheap for houses in those areas named.

Sorry overlooked this question, posted some time ago, but it was years ago since I bought, but things have not changed. Property prices went up in central Tokyo because that is where people want to live because they want to be close to services and office. Property prices there are a capital growth story, not a great one, whilst property in the outer areas is a yield proposition. Like I say at the SheldonThinks website, if you are earning money in Japan, its a good place to keep your money if you by high yielding properties (house & land) outside of Tokyo city, where its still cheap. Times of panic are the best time because only a few westerners will be bidding. I discuss the importance of having a strategy. I would only buy an investment property to renovate and flip within the next 3-4 years after capital gains obligation tax falls. Details on SheldonThinks .
It does not make sense to buy property in Japan if you are raising money overseas, particularly if coming from Aust or NZ, in fact I just bought a property in NZ for $NZ78K near a beach, or $US45K, a neat 2br home on 750m2 in a large town of 40,000 for NZ, 2 hours from a major city. I will make as much on the exchange rate in the next 5 years as the property. No capital gains tax, no stamp duty, no GST. Great currency play for investors from USA, Japan, EU. Not special for Aussies, but getting better recently.
Would have to be physically the most beautiful country. I only plan to live there for a few years to fix up a few places then sell after the currency recovers on the back of rising food prices, which is what they make so well. Its a commodities play - food commodities. Not the metal stuff (Aust).
Of course if its a lifestyle decision, well you might go differently. You still want to buy cheap though.

[hogdriver]

Ya'll got it all wrong! How about trading property for awhile? With an option to back out at anytime? Ponder that why don't cha?

If you back out or want to come home, I can always find another Japanese family wanting a change in scenery, culture, and environment.

Same goes the other way too.

For example,

Could I trade my 120 acre farm deep in the heartland of Kentucky, or my house in the city of Louisville (1900 sq foot) 3 bedroom, full basement for a nice crib in Japan for awhile? I need a change.

The Deer hunting and privacy is like owning your own nation.

I need some new scenery and friends though.