Yamamoto

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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Flipping akiya houses dependent on knowing costs, the local housing market : What is a key to success ?

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(Tokorozawa station, Seibu line)

* Foreigners can buy a property in Japan without having special qualification.
Do you want to join the small handful of people who are doing the house flipping here ? 
Maybe we have got a better solution to abandoned houses problem in Japan.
Apparently home flipping investment is a lucrative and fulfilling way to make thousands of dollars within a short period of time in US. But it can also be a difficult and frustrating endeavor when things go wrong.
And things will often go wrong. I have read about the stories that investors talk about the various obstacles in their way. Flipping homes requires hard work, persistence, and a great deal of patience,
because you’ll inevitably encounter problems in the process.
What about the flipping houses Japan ?
Since there are so many abandoned houses here in Japan, can we do something similar ?
The answer is yes and no.
Let me start with the background by quoting an article in The Japan Times.

Background
The Japan Times on December 26, 2017 says “Over 8 million properties across Japan are unoccupied, according to a 2013 government report. Nearly a fourth have been deserted indefinitely, neither for sale nor rent.
In Tokyo — where 70 percent of the people live in apartments — more than 1 in 10 homes are empty, a ratio higher than in cities like London, New York and Paris.
And that figure is expected to soar in the coming decades as deaths outpace births in a super-aging society where more than 1 in 4 people are 65 or older.

Nomura Research Institute, prominent research firm, projects the number of abandoned dwellings to grow to 21.7 million by 2033, or roughly one-third of all homes in Japan.
Meanwhile the population, which peaked nearly a decade ago, is forecast to fall 30 percent by 2065, creating an ever-increasing pool of uninhabited houses.”

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Now, the real truth about the real estate investment in Japan : Kabocha no Basha and Suruga Bank scandal

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In today’s uncertain economy, dynamic growth potential with low risk is tempting.
Real estate companies are constantly manufacturing the opportunities to captivate the naive investors.
Kabocha no Basha was one of them.

Suruga Bank Scandal background
Japan’s Financial Services Agency has launched an emergency inspection into Suruga Bank over investment irregularities involving women-only shared houses.
Suruga Bank extended over 100 billion yen ($915 million) in loans to about 700 people, mainly middle-aged salaried workers, to invest in Kabocha no Basha — or “Pumpkin Carriage” ; women-only shared houses operated by Smart Days.
Tokyo-based Smart Days also worked as a middle man between Suruga and investors and solicited investment from salaried workers, pledging to pay them rents for 30 years.
But Smart Days struggled with low occupancy rates and stopped paying the rents to owners they promised in January 2018.
Smart Days filed for bankruptcy in April 2018.

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Where is the most attractive city to invest in Asia ? : CBRE institutional investors reports 2018

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(Kamogawa city in Chiba)                       (Kominka-tradtional Japanese folk house-)
Are you curious about where the most attractive city in Asia to invest is ?
CBRE, renowned global real estate company, recently published a report on Japanese investment market called “CBRE Investors Survey 2018” According to the report while domestic investors’ willingness to invest remains high but the marker can see a somewhat prudent attitude and a move to seek an alternative investment.
Foreign investors targeting the Asia-Pacific region ranks Tokyo as the most attractive city and  local cities (7 cities in the region such as Osaka, Fukuoka as one category) in Japan as the seventh place.
In 2018, the interest from overseas investors to Japan is expected to further grow.
Here are key points from the report
While Japanese investors have increased willingness to sell, the intention to acquire is somewhat lower.
According to the report, 63% of investors in Japan said they would acquire the same volume as in 2017, an increase of 5 points from 58% in the previous year.
Meanwhile, 29% of investors responded that they will increase from the 2017 acquisition, a 9 point decrease from 38% in the previous year.
The overall result is that more than 90% of investors are still assuming investment trajectory                shall be equal to or higher than the previous year. Nonetheless, the trajectory also decreased by 5 points from 96% in the previous year. The willingness to acquire assets seems to be somewhat declining.
On the other hand, the willingness to sell is somewhat increasing.Investors who said they would sell the similar volume as the previous year, is 62%, decreased by 7 points from the previous year,34% of total said they would increase sales from the previous year, an increase of 14 points from 20% in the previous year.Overall, 96% of the total is  projecting plan to sell equal to or greater than last year.

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What is Hida-Takayama in Gifu ? Why so many Jewish people visit there ? : Will you be ready for investment in private lodging (minpaku) property ?

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(Historic village in Hida-Takayama)

It is not secret that Japan is a surprising combination of peace and chaos, old and new and has just the right amount of anorak.
Inbound tourism continues to thrive as a record 28.7 million tourists visited Japan in 2017, up 19 percent from the previous year and apparently keeping the nation on track for the government’s target;40 million in 2020.
Challenges remain such as a tight supply of accommodations that cater to overseas guests and a heavy concentration of visitors from East Asia. 
According to JNTO (Japan National Tourism Organization), the estimated number of international travelers to Japan in April reached to 2.9 million with an increase of 12.5% compared to the previous year, recording the best April ever. The estimated number of international travelers to Japan in 2018 reached to 10 million (+15.4% from 2017).

(Number of Inbound tourists by year)

(Inbound tourists by country in 2017)

That said,  Hida-Takayama　(飛騨高山）has become one of major tourist destinations among the foreign tourists
but it is not that popular destination for average Japanese.
I have recently read an interesting article about Israeli tourists in Hida-Takayama and would like to share the Takayama city’s
strategy how they become one of the most popular tourist places among foreigners especially Jews.
According to Takayama city statistics, the number of Israeli visitors has increased from mere 2,833 in 2013 to over 10,000 mark for the first time in 2016. The number has more than triple. 
Total number of Israeli visitors to Japan during 2016 was about 30,000 so one-third of them visited Takayama.
In 2017,  the total number of Israeli guests to Japan increased to 32,000 from previous year (up 7%)

(Chic Hida-Takayama old town village with historical kominka)
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Waterfront century-old Japanese kominka (traditional Japanese folk house) in Atami, Shizuoka prefecture: How was it dismantled and transferred ?

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(House)                                                              (Living room with ocean view)

I recently visited a beautiful Japanese kominka (traditional Japanese house,古民家) in Atami with
a business parter who actually renovated into the perfect condition.
The house was build only in 2017 but it used the old timbers from a century-old house in Nagano prefecture.
The current owner dismantled an old house in Nagano and transferred to Atami(熱海）and restored it completely.
Here is the traditional Japanese style house and how it is restored.
Property


It sits in Atami in Shizuoka prefecture.
It has a great access; only 2 hours away by car from central Tokyo and about 80 km from Mt.Fuji.
It is the ocean view house where you can enjoy the sea breeze and spectacular Pacific Ocean and the Sagami Bay.
(See the map below)
Located on a high ground in good sun and good ventilation.
Land over 10,000 m2, building over 270 m2.
Front road 7.6 m and 3 parking lots (more space is available for parking lot)
The beautiful unique Japanese old folk house (called kominka ‘古民家’) sits at the foot of the Izu peninsula.
The grand waterfront house originally stayed in a family for more than 90 years in the mountain side of Iiyama city in Nagano prefecture, and it has been well preserved.

(Map)

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Real Case Study : How viable is buying a property to rent in Japan ? : How to get Financing and Tax implication

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(Yokohama city center)
Evaluating Real Estate as an investment
According to an article in USA today, single-family homes in large U.S. cities have generated returns of about 9% annually on average,
according to the study, which examined results from 1986 to 2014. Yes, there are risks in real estate investment.
Becoming a landlord isn’t without its risks — from bad tenants and periodic market slumps to changing tax laws and natural disasters
such as tsunami and earthquake.
The principle and the mechanism of the real estate investment in Japan is exactly the same
as other countries.In theory, you borrow the money at 3% from a bank and buy the real estate that generates 8% yield.
The spread (in this case 5%) is your profit.
You don’t need the rocket science.   But really ?  Let’s find out how viable it is.
In financial parlance, it is called ‘leveraging’.
Leveraging does not necessarily mean success.
Skeptics about the real estate investment in Japan where the population is
declining and rapidly ageing have lots of ammunition.
Leverage magnifies all of your returns and those returns aren’t always positive!
If you want to make investments where you can expect the appreciation of 20% over next 3 years,
Japan is not your destination.

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Are you interested in buying kominka (traditional Japanese folk house, 古民家）in Japan ?: Tips for buying and renovating kominka

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(kominka  in snow)

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

Do you want to be close to beautiful Japanese mountain with your pet ? Or you love skiing ? Want to spend your weekend in real Zen（禅） surroundings with onsen(hot spring 温泉) within 15 mins drive ? Living in kominka could be a good choice.
The term kominka （古民家）refers to traditional Japanese houses, especially ones built a long time ago.
Kominka are not defined by the period they were built or how old they are, but usually the term is used when referring to houses built before the World War II, and especially to those built before the Taisho Period.
We have recently made the strategic collaboration agreement with a renowned kominka renovation specialist(工務店) in Nagano prefecture.We will find an appropriate kominka for the investors or conventional home buyers and renovate outside and inside the house into the pristine condition. We have a list of 100+ kominka properties for sale/rental.

(kominka)
If you want to buy kominka,  it is essential to pay attention to what you are doing as you purchase a very unique Japanese traditional house. You want to get this right.
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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

How to avoid buying a house with problems in Japan : Tips for detecting a malicious defect in your property

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While inspecting any property is important, it becomes even more uppermost to check for defects found in second-hand property especially akiya (空き家abandoned houses)
In Japan’s real estate industry, it is generally assumed that there are four types of risks of ‘defects’ （瑕疵）the industry professionals usually recognize.
They are physical defects, psychological defects, environmental defects
and legal defect (issues).

1. What is a physical defect?
Physical flaws are situations where the building leaks, termites occur, and the earthquake resistant strength is insufficient.
Some common physical issues
For example, with 8 million akiya (Abandoned house, 空き家),
old houses are usually very affordable in Japan these days. However, those old houses could also come with a lot of issues that you may not be prepared for.
What seems like a great deal at first may ultimately cost much more than you originally thought.
It is always recommended to do your research before investing in real estate, particularly when the property in question is old property.
The following checklist will give you an idea of what issues to watch out for when buying a second-hand property especially an older home.
Due diligence always pays off.
You want to avoid common physical defects, problems with the construction structure. 

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