Tag Archive for Property

Skiing into Profit: A Guide to Investing in Japan’s Emerging Ski Resort Markets

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Part 1: Overview of Japanese Ski Resorts and Investment Value

Introduction

Japanese ski resorts are becoming increasingly popular among international investors due to their world-class snow, cultural appeal, and expanding infrastructure.

In this two-part series, we explore Japan’s ski resorts from an investment perspective.

 

This first article provides a comprehensive overview of the major ski resort areas and their investment appeal.

The second article will focus on specific recommendations for regions that offer the most promising opportunities for real estate investment based on accessibility,

rental demand, and future growth potential.

 

1. Strengths and Weaknesses of Japanese Ski Resorts

Strengths

 

1. Snow Quality

Japan’s ski resorts, particularly in Hokkaido and Nagano, are renowned for their powder snow, known as “Japow” (Japanese powder).

Niseko in Hokkaido has gained international fame for its world-class snow quality, while Hakuba in Nagano is also highly regarded among skiers.

Investment Insight:

The high-quality powder snow attracts a steady stream of international tourists,

ensuring consistent rental demand and profitability for real estate investors.

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

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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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Avoid Costly Mistakes: Understanding the Key Differences Between Residential (for living) and Investment Properties in Japan

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Understanding the Differences in Choosing Residential (for living)

vs. Investment Properties in Japan: A Guide to Successful Real Estate Decisions

Overview:

This article delves into the differences in approach when selecting residential (for living) and investment properties in Japan’s real estate market.

It covers crucial aspects such as bank loan conditions, taxes, methods of gathering property information,

the various types of investment properties and their market characteristics, how to choose the right real estate agency, and exit strategies.

By addressing these topics, the article provides specific steps and tips for making successful property choices, regardless of the buyer’s goals.

 

Differences in Purpose and Selection Criteria:

For residential properties(for living), the primary focus is on ensuring comfort and convenience for yourself and your family.

Factors such as location, environment, and proximity to essential amenities are prioritized.

In contrast, investment properties prioritize profitability, with the main criteria being the future potential of the area, rental market trends,

and the resale value of the property.

Investors do not live in these properties, so they must make objective, rational decisions as investors.

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Bridging the Language Gap: How Yamamoto Property Advisory Ensures Clarity in Japanese Real Estate Contracts

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For Foreigners: The Importance of Japanese Contracts and How to Explain Them？

 

Pros and Cons of Conducting Real Estate Transactions for Foreign Clients Using Contracts Translated

into Foreign Languages

 

We found a very interesting article on the Real Estate Transaction Promotion Center’s (公益財団法人　不動産流通推進センター）website.

In this article, we will share the content and inform you of our company’s approach to this issue.

 

Background and Key Figures

The background of the article is based on a consultation with a real estate company (Not Yamamoto Property Advisory)

that is not experienced in handling foreign clients.

As real estate transactions with foreign clients increase, said brokerage firm, specializing in sales and rentals, faces the challenge of preparing transaction documents

in foreign languages and arranging interpreters.

 

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Tokyo’s Retail Real Estate Trends Q1 2024: Opportunities for Foreign Investors

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Summary of CBRE Japan Retail MarketView Q1 2024

Who is CBRE?

CBRE Group, Inc. (Coldwell Banker Richard Ellis) is a global commercial real estate services and investment firm headquartered in Los Angeles, California.

With operations in over 100 countries, CBRE is the world’s largest commercial real estate services and investment firm, offering a broad range of services,

including property sales, leasing, management, valuation, and advisory. Renowned for its extensive market research and industry insights,

CBRE provides valuable data and analysis to help investors, property owners, and tenants make informed decisions in the real estate market.

 

Overview

The CBRE Japan Retail MarketView (commercial properties) for Q1 2024 provides a comprehensive analysis of the retail real estate market across various key high street areas in Japan.

The report highlights trends in vacancy rates, average rents, and sector-specific demand, focusing on both Tokyo and regional cities.

Understanding Tsubo

In the Japanese real estate market, “tsubo” is a common unit of measurement for area. One tsubo is approximately 3.3 square meters or 35.6 square feet.

This unit is often used when discussing property sizes and rental rates in Japan, especially in the context of commercial and retail spaces.

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2024 Land Value Surge in Tokyo and Kanagawa: Key Factors and Future Insights for Foreign Investors

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Land Value Surge in 2024: Insights for Foreign Investors in Tokyo and the Kanto Region

Key Points:

  • Metropolitan Area Focus
  • Economic Trends

On July 1(2024), the National Tax Agency announced the land value(路線価）

as of January 1, showing a national average increase of 2.3%,

marking the third consecutive year of growth.

This rise, the largest in 16 years, is driven by the recovery of inbound tourism,

redevelopment projects, and increased housing demand.

Regional Highlights:

The average land value increased in 29 prefectures, with the highest increases in:

  • Fukuoka: +5.8%
  • Okinawa: +5.6%
  • Tokyo: +5.3%
  • Hokkaido: +5.2%
  • Miyagi: +5.1%
  • Aichi: +3.2%
  • Osaka: +3.1%
  • Saitama: +2.1%

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Comprehensive Cost Analysis: What to Expect When Purchasing Japanese Property

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Introduction

The Japanese real estate market offers unique opportunities and challenges for investors and homebuyers alike.

This article delves into the myriad costs associated with property transactions beyond the listing price,

helping you to budget effectively and navigate the market with confidence.

 

Understanding Purchase Costs

When buying property in Japan, costs extend far beyond the advertised price.

These vary based on the property’s location, type, and the transaction’s specifics.

 

Brokerage Commission (仲介手数料）: 

In Japan, brokerage fees for real estate transactions typically consist of 3% of the property’s sale price, an additional fixed fee of 60,000 yen,

and a consumption tax, which is currently at 10%.

These fees(commission) are payable to real estate agents (buying agents or listing agents).

 

Similarly, when you decide to sell your property through agents, the same fee structure applies.

You will need to pay 3% of the property’s sale price, plus a fixed fee of 60,000 yen,

along with the 10% consumption tax currently applicable.

These fees are payable to your selling agents.

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Tokyo’s Real Estate Outlook 2024: Insights from NLI Research for International Investors and Residents

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Introduction

 

*Greater Tokyo transaction price and transaction numbers

(From NLI chart)

 

As a leading expert with 15 years of experience as a residential property investor and landlord in Tokyo’s real estate market,

Yamamoto Property Advisory offers unparalleled insights and tailored investment strategies

for foreign investors looking to navigate this dynamic landscape.

Our deep understanding from a landlord’s perspective enriches our advisory services,

ensuring that you receive the most informed and strategic guidance available.

 

The report from NLI Research Institute, a think tank of Nihon Life insurance group, dated March 22, 2024,

provides an analysis of the used condominium market in the Tokyo metropolitan area (greater Tokyo, including

Tokyo, Kanagawa, Saitama and Chiba)with a focus on the effects of financial policy changes

and market dynamics.

 

The used condominium market in the Tokyo metropolitan area has a significant impact on the overall real estate market in Japan

due to its large scale and influence,and because Tokyo is the center of economic activity in Japan. For this reason,

this market is considered an indicator of the entire Japanese real estate market.

 

 

Here’s a concise summary of the main points of the report.

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Bridging Cultures in Property: Insights for Foreign Investors in Tokyo

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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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Beyond the Price Tag: Understanding Agent Responsibilities in Tokyo’s Property Market

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Case Study: The Imperative of Reporting All Purchase Offers

in Real Estate Transactions

 

In the Tokyo real estate market, the ethical and legal responsibilities of real estate agents are often tested in complex transactions.

A compelling example is a case involving the duty to report all purchase offers to a seller, even when these offers fall below the seller’s specified minimum price.

This case study provides vital insights into the professional obligations of real estate agents and the nuances of navigating client relationships.

This case study was created using an example published by the Real Estate Distribution Promotion Center, a public interest incorporated foundation.

 

Scenario: A Dilemma in Reporting Offers

Our real estate firm faced a challenging situation with a property listed for sale.

The seller, preparing for retirement, set a minimum sale price of 35 million yen for their 10-year-old single-family home, even though the asking price was slightly higher at 36 million yen.

The rationale was straightforward: the seller wanted to use the proceeds to partially repay the mortgage on their newly purchased condo.

The complexity arose when an offer came in at 34 million yen, facilitated by another agent.

In line with the seller’s initial instruction, we (agent) chose not to report this lower offer immediately.

This decision, made from a place of respect for the seller’s wishes, soon revealed itself to be a pivotal learning point.

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