Has anyone built or purchased a house in Japan?
Aug 9, 2018, 3:05 am
#31
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Haven't been to Yuzawa area in over a decade, but makes sense that they would get more English friendly to attract more tourist dollars. Again, the main attraction of Hokkaido for me is the better snow and terrain.
Are you interested in buying in Yuzawa for personal use or investment? I've seen some of the news articles you mention about Yuzawa condo owners trying to unload their properties and based on the numbers you shared, it makes sense. For a vacation home, the owner would expect to be able to rent out the property when they aren't using it personally. But with an over-supply of aging condos, the owners basically can't ever rent it out. If the condo is for personal use only, how many days/weeks would you expect to actually stay in the property? 500,000 yen purchase price (not including the cost to payoff the previous owner's unpaid HOA's) plus another 500,000+ yen per year in maintenance fees, property taxes, etc., wouldn't it make more sense to stay in one of the many well-kept hotel properties near the shinkansen station or the ski resort itself?
Are you interested in buying in Yuzawa for personal use or investment? I've seen some of the news articles you mention about Yuzawa condo owners trying to unload their properties and based on the numbers you shared, it makes sense. For a vacation home, the owner would expect to be able to rent out the property when they aren't using it personally. But with an over-supply of aging condos, the owners basically can't ever rent it out. If the condo is for personal use only, how many days/weeks would you expect to actually stay in the property? 500,000 yen purchase price (not including the cost to payoff the previous owner's unpaid HOA's) plus another 500,000+ yen per year in maintenance fees, property taxes, etc., wouldn't it make more sense to stay in one of the many well-kept hotel properties near the shinkansen station or the ski resort itself?
Aug 9, 2018, 6:39 pm
#32
Join Date: Feb 2013
Location: Hilton, Hyatt House, Del Taco
Posts: 5,380
Are you interested in buying in Yuzawa for personal use or investment? I've seen some of the news articles you mention about Yuzawa condo owners trying to unload their properties and based on the numbers you shared, it makes sense. For a vacation home, the owner would expect to be able to rent out the property when they aren't using it personally. But with an over-supply of aging condos, the owners basically can't ever rent it out. If the condo is for personal use only, how many days/weeks would you expect to actually stay in the property? 500,000 yen purchase price (not including the cost to payoff the previous owner's unpaid HOA's) plus another 500,000+ yen per year in maintenance fees, property taxes, etc., wouldn't it make more sense to stay in one of the many well-kept hotel properties near the shinkansen station or the ski resort itself?
I would buy it partially for personal use. We'd probably spend just a few days there, couple times a year, which might amount to 200k~250k yen savings per year in what would otherwise go to hotel stay. Certainly not enough to offset the yearly cost of ownership. I think chances of being able to rent it out would be low.
So it'd make no sense to buy if I knew for sure the value would never go up. I wonder if it could go up, though. Foreigners are buying up properties in other resort areas such as Hokkaido and Karuizawa, and that boom could eventually trickle down to Yuzawa, etc.
Then again, I've read that condos/mansions in Jpn that are >50yo have no value. If that's the case, and that rule applies to Yuzawa, then it'd really argue against buying one of these 30yo properties in Yuzawa. The more I think about it, the more I get the sense that this is low-risk/low-reward situation.
Aug 10, 2018, 2:34 am
#33
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And you're right, for the highest grade reinforced concrete buildings, they will fully depreciate in about 50 years. The life of the building may be longer but the cost to maintain will probably be prohibitive.
Aug 10, 2018, 3:29 am
#34
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Yeah, that's a big reason a lot of the building associations are buying back those vacant units, so they can cancel the unpaid fees and dues and then sell at a more attractive price. The problem is that the monthly HOA fees will likely increase at a faster rate in order to keep the maintenance fund at the proper level. The challenge is that elderly residents on fixed incomes are much less likely to approve increases in the maintenance fees, so the risk of a building falling into disrepair is real.
And you're right, for the highest grade reinforced concrete buildings, they will fully depreciate in about 50 years. The life of the building may be longer but the cost to maintain will probably be prohibitive.
And you're right, for the highest grade reinforced concrete buildings, they will fully depreciate in about 50 years. The life of the building may be longer but the cost to maintain will probably be prohibitive.
Interesting convo, keep it going....
Aug 10, 2018, 6:48 pm
#36
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If that’s the case, then throwing down $700k USD for a condo in Kiroro or $1mill in Niseko seems like a complete waste of money, unless you’re going to live there full-time (which almost no buyers will) or the Hokkaido market is somehow destined towards different future from the rest of Jpn (and more aligned with US) such that condo/mansion values will not depreciate.
Aug 11, 2018, 12:40 am
#37
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If that’s the case, then throwing down $700k USD for a condo in Kiroro or $1mill in Niseko seems like a complete waste of money, unless you’re going to live there full-time (which almost no buyers will) or the Hokkaido market is somehow destined towards different future from the rest of Jpn (and more aligned with US) such that condo/mansion values will not depreciate.
Aug 11, 2018, 8:18 am
#38
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I built a house in Nagano. I use it a lot and had a cheap mortgage so for me it was a good deal. In general though I would be very cautious about buying any kind of resort/rural property. The chances of appreciation are pretty low IMHO, and Niseko/Hokkaido seems grossly overpriced to me.
That said if you expect to use a resort condo/house a lot, you can find some really good properties in the second hand market. Also if you buy/build at higher elevations or in colder climates where there is less humidity and do normal maintenance, a well built house will last a long time.
That said if you expect to use a resort condo/house a lot, you can find some really good properties in the second hand market. Also if you buy/build at higher elevations or in colder climates where there is less humidity and do normal maintenance, a well built house will last a long time.
Aug 11, 2018, 1:25 pm
#39
Join Date: Feb 2013
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Did you build the house at/near ski resort?
I guess getting a house built is an option, but I assume it's complicated.
Would be nice to have a place that's useful in winter (near skiing), in summer (high altitude, like >1000m), easy to get to (within 90min from Tokyo). If I could have such place, we'd use it a lot.
Where would be a place like that be?
Karuizawa? Too expensive.
I guess getting a house built is an option, but I assume it's complicated.
Would be nice to have a place that's useful in winter (near skiing), in summer (high altitude, like >1000m), easy to get to (within 90min from Tokyo). If I could have such place, we'd use it a lot.
Where would be a place like that be?
Karuizawa? Too expensive.
Aug 14, 2018, 10:43 pm
#40
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or, they are selling to the foreign investors who thinks japanese real estate would appreciate. add to that they may ski twice a year.
Even to rent it out as premium accomodation during ski season... i dont think it would pay out after management fees n stuff!?
Even to rent it out as premium accomodation during ski season... i dont think it would pay out after management fees n stuff!?
Aug 15, 2018, 7:49 am
#41
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OP here. This thread took off far beyond what I expected, but here is an update.
Mrs. keihin_242 and I purchased a new model home from Sekisui Heim, not to be confused with Sekisui House, a related but separate company. It’s a steel frame unit construction house, and we were able to buy at a discount because other prospective buyers were disapproved for loans (we paid cash). Notably, Heim installed their “Kaiteki Eiiri” central HVAC system on the first floor, which has been very helpful over this miserable summer. The HVAC system also includes a high-grade air filter system (exceeding HEPA standards) that continually cleans and recirculates all the air in the house.
Our second choice was a seven year old wooden house built by Sekisui House. While we declined to purchase because the house was too small, I can attest that Sekisui House’s build quality and durability is top-notch; the doors still closed quietly and snugly as if they were new, and the foundation still looked freshly laid. I am confident anyone who has the chance to buy a used Sekisui House property is buying a great house, assuming the owner has taken care of it.
We are very pleased with our Sekisui Heim house. It has been convenient and comfortable to live in. It also was my wife’s choice, which I have been assured is the key to a successful house purchase.
Mrs. keihin_242 and I purchased a new model home from Sekisui Heim, not to be confused with Sekisui House, a related but separate company. It’s a steel frame unit construction house, and we were able to buy at a discount because other prospective buyers were disapproved for loans (we paid cash). Notably, Heim installed their “Kaiteki Eiiri” central HVAC system on the first floor, which has been very helpful over this miserable summer. The HVAC system also includes a high-grade air filter system (exceeding HEPA standards) that continually cleans and recirculates all the air in the house.
Our second choice was a seven year old wooden house built by Sekisui House. While we declined to purchase because the house was too small, I can attest that Sekisui House’s build quality and durability is top-notch; the doors still closed quietly and snugly as if they were new, and the foundation still looked freshly laid. I am confident anyone who has the chance to buy a used Sekisui House property is buying a great house, assuming the owner has taken care of it.
We are very pleased with our Sekisui Heim house. It has been convenient and comfortable to live in. It also was my wife’s choice, which I have been assured is the key to a successful house purchase.
Aug 15, 2018, 5:27 pm
#42
Original Member
Join Date: May 1998
Location: Tokyo, Japan (or Vienna whenever possible)
Posts: 6,379
OP here. This thread took off far beyond what I expected, but here is an update.
Mrs. keihin_242 and I purchased a new model home from Sekisui Heim, not to be confused with Sekisui House, a related but separate company. It’s a steel frame unit construction house, and we were able to buy at a discount because other prospective buyers were disapproved for loans (we paid cash). Notably, Heim installed their “Kaiteki Eiiri” central HVAC system on the first floor, which has been very helpful over this miserable summer. The HVAC system also includes a high-grade air filter system (exceeding HEPA standards) that continually cleans and recirculates all the air in the house.
Our second choice was a seven year old wooden house built by Sekisui House. While we declined to purchase because the house was too small, I can attest that Sekisui House’s build quality and durability is top-notch; the doors still closed quietly and snugly as if they were new, and the foundation still looked freshly laid. I am confident anyone who has the chance to buy a used Sekisui House property is buying a great house, assuming the owner has taken care of it.
We are very pleased with our Sekisui Heim house. It has been convenient and comfortable to live in. It also was my wife’s choice, which I have been assured is the key to a successful house purchase.
Mrs. keihin_242 and I purchased a new model home from Sekisui Heim, not to be confused with Sekisui House, a related but separate company. It’s a steel frame unit construction house, and we were able to buy at a discount because other prospective buyers were disapproved for loans (we paid cash). Notably, Heim installed their “Kaiteki Eiiri” central HVAC system on the first floor, which has been very helpful over this miserable summer. The HVAC system also includes a high-grade air filter system (exceeding HEPA standards) that continually cleans and recirculates all the air in the house.
Our second choice was a seven year old wooden house built by Sekisui House. While we declined to purchase because the house was too small, I can attest that Sekisui House’s build quality and durability is top-notch; the doors still closed quietly and snugly as if they were new, and the foundation still looked freshly laid. I am confident anyone who has the chance to buy a used Sekisui House property is buying a great house, assuming the owner has taken care of it.
We are very pleased with our Sekisui Heim house. It has been convenient and comfortable to live in. It also was my wife’s choice, which I have been assured is the key to a successful house purchase.
Aug 15, 2018, 10:59 pm
#43
Join Date: Feb 2013
Location: Hilton, Hyatt House, Del Taco
Posts: 5,380
I can attest that Sekisui House’s build quality and durability is top-notch; the doors still closed quietly and snugly as if they were new, and the foundation still looked freshly laid. I am confident anyone who has the chance to buy a used Sekisui House property is buying a great house, assuming the owner has taken care of it.
In US, you don't buy a house without a professional inspection or pre-inspection. You have one or two inspectors lined up and ready to go, because you need to move fast if you want to buy a good used home in a competitive market. I guess in Jpn, I'm told there are home inspectors although most people don't use them. Is that because it's expensive? It's frowned upon by the seller/realtor? Buyers trust their realtors? Inspectors are hard to find? Who knows?
If I were to buy in Jpn, it'd probably have to be used, but I'd be clueless when it comes to assessing homes.
Aug 16, 2018, 12:06 am
#44
Original Member
Join Date: May 1998
Location: Tokyo, Japan (or Vienna whenever possible)
Posts: 6,379
When you say the foundation looked good, did you hire an inspector?
In US, you don't buy a house without a professional inspection or pre-inspection. You have one or two inspectors lined up and ready to go, because you need to move fast if you want to buy a good used home in a competitive market. I guess in Jpn, I'm told there are home inspectors although most people don't use them. Is that because it's expensive? It's frowned upon by the seller/realtor? Buyers trust their realtors? Inspectors are hard to find? Who knows?
If I were to buy in Jpn, it'd probably have to be used, but I'd be clueless when it comes to assessing homes.
In US, you don't buy a house without a professional inspection or pre-inspection. You have one or two inspectors lined up and ready to go, because you need to move fast if you want to buy a good used home in a competitive market. I guess in Jpn, I'm told there are home inspectors although most people don't use them. Is that because it's expensive? It's frowned upon by the seller/realtor? Buyers trust their realtors? Inspectors are hard to find? Who knows?
If I were to buy in Jpn, it'd probably have to be used, but I'd be clueless when it comes to assessing homes.
Last edited by mjm; Aug 16, 2018 at 5:55 am
Aug 16, 2018, 2:37 am
#45
Join Date: Jan 2008
Location: TYO
Programs: UA MM *G, NH Plat/SFC, HH Diamond, GE
Posts: 238
OP here. This thread took off far beyond what I expected, but here is an update.
Mrs. keihin_242 and I purchased a new model home from Sekisui Heim, not to be confused with Sekisui House, a related but separate company. It’s a steel frame unit construction house, and we were able to buy at a discount because other prospective buyers were disapproved for loans (we paid cash). Notably, Heim installed their “Kaiteki Eiiri” central HVAC system on the first floor, which has been very helpful over this miserable summer. The HVAC system also includes a high-grade air filter system (exceeding HEPA standards) that continually cleans and recirculates all the air in the house.
Our second choice was a seven year old wooden house built by Sekisui House. While we declined to purchase because the house was too small, I can attest that Sekisui House’s build quality and durability is top-notch; the doors still closed quietly and snugly as if they were new, and the foundation still looked freshly laid. I am confident anyone who has the chance to buy a used Sekisui House property is buying a great house, assuming the owner has taken care of it.
We are very pleased with our Sekisui Heim house. It has been convenient and comfortable to live in. It also was my wife’s choice, which I have been assured is the key to a successful house purchase.
Mrs. keihin_242 and I purchased a new model home from Sekisui Heim, not to be confused with Sekisui House, a related but separate company. It’s a steel frame unit construction house, and we were able to buy at a discount because other prospective buyers were disapproved for loans (we paid cash). Notably, Heim installed their “Kaiteki Eiiri” central HVAC system on the first floor, which has been very helpful over this miserable summer. The HVAC system also includes a high-grade air filter system (exceeding HEPA standards) that continually cleans and recirculates all the air in the house.
Our second choice was a seven year old wooden house built by Sekisui House. While we declined to purchase because the house was too small, I can attest that Sekisui House’s build quality and durability is top-notch; the doors still closed quietly and snugly as if they were new, and the foundation still looked freshly laid. I am confident anyone who has the chance to buy a used Sekisui House property is buying a great house, assuming the owner has taken care of it.
We are very pleased with our Sekisui Heim house. It has been convenient and comfortable to live in. It also was my wife’s choice, which I have been assured is the key to a successful house purchase.