Tag Archive for risk

The Realities of Buying Unbuildable Properties（再建築不可） in Japan: What Every Investor Should Know

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Understanding Unbuildable Properties

(再建築不可物件) in Japan

 

 

Unbuildable properties, known as “Saikenchiku Fuka Bukken” (再建築不可物件) in Japan,

refer to parcels of land where new construction is legally prohibited.

This restriction remains in place even if there is an existing structure on the land—once that structure is demolished,

no new building can be built.

These properties are often located in areas where modern building codes and regulations have evolved, making older properties

non-compliant with current standards.

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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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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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Investing in Japanese Real Estate through Mortgage Property Auctions: What Foreign Investors Need to Know

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Investing in Japanese Real Estate: What Foreign Investors Need to Know

Japan is a country with a rich history and culture, and its real estate market is no exception.

With its unique blend of modernity and tradition,

Japan offers a wide range of investment opportunities for foreign investors.

However, investing in Japanese real estate can be a complex process,

and it is important to understand the legal and

cultural nuances before making an investment.

As a real estate agent based in Tokyo serving foreign investors,

I have seen first-hand the potential for growth and success

in the Japanese real estate market.

In this article, I will share some key information t

hat foreign investors should know before investing in Japanese real estate.

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Understanding Key Clauses in Japanese Real Estate: A Guide for Foreign Investors

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Hello, dear readers and investors!

 

As a real estate agent based in Tokyo, I have the privilege of assisting numerous foreign investors

in navigating the intricacies of the Japanese property market.

Today, I’d like to share some insights on a critical aspect of real estate transactions in Japan

– the extension of settlement dates and loan cancellation dates in sales contracts.

 

This topic is particularly relevant for those planning to finance their property purchase through a housing loan.

 

In the realm of real estate transactions, it’s common for buyers to finance their purchases through housing loans. In Japan,

when a buyer opts for a housing loan, a specific clause, known as the housing loan clause (or loan cancellation clause),

is typically included in the sales contract.

This clause provides a safety net for buyers,

allowing them to cancel the contract if they fail to secure loan approval from their financial institution.

Now, let’s consider a scenario where the buyer’s financial arrangements are delayed,

leading to an agreed extension of the settlement date (the payment date) with the seller.

A question that often arises in such situations is – does the extension of the settlement date also imply an extension of the loan cancellation date?

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Transforming Akiya(unused house) into a Hotel?: Navigating the Legal Maze for a Successful Investment

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Contemplating Purchasing

Akiya and Turning It into a Hotel?

Uncover the Legal Considerations

for Change of Use

 

If you’re mulling over the idea of buying an Akiya (unused house) in Japan

 

and converting it into a hotel, it’s crucial to familiarize yourself

 

with the legal considerations involved in modifying the property’s purpose.

 

In this blog post, we’ll highlight the primary aspects you need to

 

keep in mind before diving into this thrilling endeavor.

 

Stay up-to-date and optimize your investment by following our business

 

blog for more news and valuable insights.

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Unlocking Wealth in Japan’s Property Market: An Investment Roadmap for Affluent Individuals

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Discovering Lucrative Opportunities in Japanese Real Estate

 

for High-Net-Worth Investors

 

Introduction:

 

Japan has long been an attractive destination for high-net-worth individuals

 

who appreciate its rich culture, modern cities, and stunning landscapes.

 

As the yen continues to depreciate and real estate prices remain relatively low compared to other global cities,

 

now is the perfect time for investors with a net worth of 1-2 million

 

US dollars to explore opportunities in the Japanese property market.

 

Prime Locations:

 

While Tokyo is the most popular choice for foreign investors,

other metropolitan areas such as Osaka and Nagoya also offer attractive investment prospects.

For those interested in resort properties, Hokkaido and Okinawa are becoming increasingly popular choices.

 

Example Properties in Tokyo:

 

Minato-ku, Tokyo: A luxurious 2-bedroom apartment in the upscale Minato-ku district offers

 

investors a taste of cosmopolitan living. With a price tag of around $1 million,

 

the apartment offers a potential rental yield of 4-5%.

 

Shibuya-ku, Tokyo: A modern one-bedroom apartment in the vibrant Shibuya-ku area offers

 

a more affordable investment option at around $500,000.

 

The potential rental yield for this property is approximately 3-4%.

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Buying a very affordable condominium in Japan ?: Do the due diligence

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Irresistible ?

I receive a number of inquiries about very affordable and yet old condominiums from foreign nationals.

They don’t know much about Japanese market.

Japan is facing serious social issues including ageing society and shrinking population.

And old condominiums are facing similar realities especially in the regional areas.

I am not saying all old condominiums are risky but please do not jump at the gun only because they are cheap.

You need to carefully investigate the property and check the potential risks.

Real estates are totally controlled by the market mechanism and they are cheap for a reason.

That said, if you carefully search, you could get a relatively good investment.

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