Cheapest property in the world

Here is a candidate for the cheapest home in the world, and its no demolition site either. This is a very good quality house near Kisakata town in Akita Prefecture, in northern Honshu, Japan. You might be wondering how you can buy a house so cheap in Japan. There are several reasons:
1. Few holidays: The Japanese embrace universal suffrage. Nope, nothing to do with voting, though that is hardly a stretch. The Japanese don't believe in recreation that goes beyond a weekend. So if they can't get there in a weekend, then they dont do it. Few Japanese people have holiday houses because they either can't afford it, they work so hard, or they just are scared to depart from routine. I dare say I have seen more of Japan than 99% of the population, and I've been there just 3 years.
2. Depopulation: This property lies in the northern provinces of Japan which is subject to depopulation. For this reason there is excess housing stock. Parents are dying and children go off to the city for work. This trend might diminish in the next 5 years as food prices increase, but dont count on it, as there are lifestyle reasons for leaving as well.
3. Financial literacy: The Japanese generally dont get much financial literacy education so they are reluctant to take risks, even those which are 'manageable'. Risks are avoided rather than overcome. Safety first.
4. Foreclosed property: This is a foreclosed property, so its particularly cheap. The natural market for this property is local people, but they are not so aware of foreclosures. Owners and family are too ashamed to talk about such things, no one has any money, and no one wants to live here as there are no jobs.

So why would a foreigner want to live here?

I can think of a number of reasons why foreigners would want to live in this area. If they have a tourist visa its easy to get here and travel around on a Japan Rail pass. The cost of the home is just Y0.874 million ($US9,000) - at least that is the minimum bid, and I suspect there will not be other bidders. You can stay in Japan 3 months before you have to leave the country, or go to Korea for a weekend to extend your holiday. I did that for a year.
So you want the details?

This foreclosed property comprises 955m2 of land and a 2-storey house with a floor area of 56m2 downstairs and 35m2 upstairs. Its a small house, but surprisingly modern looking at the photos of the interior. What an idyllic location. I can just imagine Mary-Loo Taylor coming out the front door in dance & song to pick the strawberries and milk the cow. In addition there is a storage shed as well. More remarkable is that this house has no immediate neighbours - a rare feat in Japan. Probably one of the few places you can play your Van Halen CDs and not get arrested - as Mary Loo unfortunately was.
So how to buy?
This foreclosed property is sold through the Akita Prefectural Court through a tender system. If you need further information consider buying the Japan Foreclosed Property Report 2008 above. It describes my experiences buying foreclosed property and the information I gathered in the process. I am also offering population charts in the Saitama & Tokyo area for those who are interested. I do believe this is likely the cheapest property in the world. Its a paradox that it should be found in Japan given that its so hard to escape civilisation in the country. A great place to live if you are not a local.

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Andrew Sheldon www.sheldonthinks.com