Real Estate Investor · Sandy, UT · Member since 2008 · 19 posts · 0 votes
I'd like to buy a home in Japan. Rent it for about 15 years and then keep it for personal use. My wife is Japanese. Anyone with any experience in this area?
I'd like to buy a home in Japan. Rent it for about 15 years and then keep it for personal use. My wife is Japanese. Anyone with any experience in this area?
I suggest buying foreclosed property because it can be anywhere between 10-50% lower than the market price, and 20-80% lower than the replacement value. Why? rural depopulation, fashion tastes of the Japanese, etc.
For instance, we bought a 12yo house 90mins from tokyo for $USD38K. It was a very tidy home, 4km from shopping centre, 5km from train station, overlooking rice paddies, close to tourist area. Like a new home in many respects. Just 120m2 of land, 100m2 house (typical), but it was very quiet village community (subdivision). Rented immediately for $600/mth, ie. 12% nominal yield after painting to remove the smoke staining, and some kitchen repair.
Are you ready to pay cash for it? Financing rentals in this country is next to impossible for foreigners. I have met once an enterprising young Japanese guy who has amassed a sizable fortune in rental apartment buildings, but certainly he was not the average and he worked extremely hard to get the financing while credit was loose.
One source of cheaper houses are the government auctions. I have even seen an ebook floating around that describes in English how to navigate their Japanese-only website. However it is still a confusing and non foreigner friendly process. If you can read some Japanese check out this government website: http://bit.sikkou.jp/
Let me know how you make out. I am living in Tokyo and very interested in the real estate.
I'd like to buy a home in Japan. Rent it for about 15 years and then keep it for personal use. My wife is Japanese. Anyone with any experience in this area?
I suggest buying foreclosed property because it can be anywhere between 10-50% lower than the market price, and 20-80% lower than the replacement value. Why? rural depopulation, fashion tastes of the Japanese, etc.
For instance, we bought a 12yo house 90mins from tokyo for $USD38K. It was a very tidy home, 4km from shopping centre, 5km from train station, overlooking rice paddies, close to tourist area. Like a new home in many respects. Just 120m2 of land, 100m2 house (typical), but it was very quiet village community (subdivision). Rented immediately for $600/mth, ie. 12% nominal yield after painting to remove the smoke staining, and some kitchen repair.