Shouganai
先輩
- 19 Feb 2008
- 60
- 1
- 18
Its interesting that many people dont seem to be aware of the opportunities to buy foreclosed property in Japan. For many foreigners and Japanese alike, there are great opportunities. I've bought foreclosed properties in Japan & the Philippines. The benefits of Japan are:
1. Great savings - you can buy a house for as little as 10% of the replacement value, or 30% of the market value, with particular savings in rural areas. Why? Depopulation, and 'no long stay holiday' culture. Its more competitive in the city. The amount of property available is amazing.
2. Polite society - Japanese people are 'good sports'. They dont curse and blow your house up when you move into their foreclosed property. The prior owner in our case gave us some advice on how to maintain it.
3. No talk: Japanese people are ashamed to talk about it, so neighbours, who are likely buyers, don't know the property is for sale, so don't tell them.
4. Good yields: You can buy a property offering yields as high as 13% (in our case), and thats before you leverage it, so if 70% bank debt, you can pay the property off in a few years, and buy another in the meantime.
5. Great infrastructure for fixing up a property. I had no experience for fixing up a home. I found the staff at Cainz Home very helpful, but its mostly common sense and building materials are cheap in Japan. Fixing up my place was one of the most gratifying things I have done. I paid Y2.8mil for my place 1hr from Tokyo. Cheaper if you go further into the country, but I wanted access to a large city (Tokyo) for drinking.
Its not all good news. There is no property bubble on the horizon, no govt reform agenda, but it will come eventually, and the lack of population growth means that there is no real growth. But yields are exceptional, and of you are living in Japan, or want to retire here (using Japan Rail pass as well), I can think of few better places. Maybe Philippines, which also has foreclosed property. Anyway you can Google 'foreclosed Japan' for more info.
1. Great savings - you can buy a house for as little as 10% of the replacement value, or 30% of the market value, with particular savings in rural areas. Why? Depopulation, and 'no long stay holiday' culture. Its more competitive in the city. The amount of property available is amazing.
2. Polite society - Japanese people are 'good sports'. They dont curse and blow your house up when you move into their foreclosed property. The prior owner in our case gave us some advice on how to maintain it.
3. No talk: Japanese people are ashamed to talk about it, so neighbours, who are likely buyers, don't know the property is for sale, so don't tell them.
4. Good yields: You can buy a property offering yields as high as 13% (in our case), and thats before you leverage it, so if 70% bank debt, you can pay the property off in a few years, and buy another in the meantime.
5. Great infrastructure for fixing up a property. I had no experience for fixing up a home. I found the staff at Cainz Home very helpful, but its mostly common sense and building materials are cheap in Japan. Fixing up my place was one of the most gratifying things I have done. I paid Y2.8mil for my place 1hr from Tokyo. Cheaper if you go further into the country, but I wanted access to a large city (Tokyo) for drinking.
Its not all good news. There is no property bubble on the horizon, no govt reform agenda, but it will come eventually, and the lack of population growth means that there is no real growth. But yields are exceptional, and of you are living in Japan, or want to retire here (using Japan Rail pass as well), I can think of few better places. Maybe Philippines, which also has foreclosed property. Anyway you can Google 'foreclosed Japan' for more info.