This is my response to a forum post I found on foreclosed property. The argument is basically...if foreclosed property is so good, why isn't everyone doing it.
[QUOTE=Base]The keibaiyasan (foreclosure "helpers") charge high because auctioned places are full of properties with easements and other problems. You can get burned easily if you don't know what you're doing, which is why regular Japanese don't participate.[/QUOTE]
Problems, problems, problems. Risks are not avoided, they are managed. There is so much 'scary risk' priced into foreclosed property in Japan, only an absolute idiot would lose money. Now, when I think of risk management, I don't consider the Japanese to be among the most prudent in the world. Why? They are risk evaders rather than risk managers. Of course we can all huddle in our parents home until they die, or we can step out in the real world and build/buy our own home. Its hard to finance a property anywhere in the world. Japan offers the promise of buying a very cheap place for cash, and you can actually profit just on the purchase.
This guy talks about the risk of the property having easements. If you think about the actual risk involved, quantify/qualify it, it really is a small risk, and easily managed. For instance:
1. I would not expect new subdivisions to have land boundary problems because they are surveyed from fresh development title. Old farms in rural areas could have problems like these because they have multiple houses owned by family, then family members sell to strangers.
2. I would only expect easements to be a problem if you are building a new place. If you are happy with the existing home, again, so problem exists. If you intend to demolish and rebuild (which you shouldn't do), then you build within the context of the constraints.
You will come across farm houses which will have unlicensed buildings, underwater water storage banks, septic systems, etc. Do you need to fear? Japan has only been a highly organised society for the last 30 years. Before that it was the 'Wild West', people doing as they pleased. This is the culture in the rural areas. Now Japan has cities because its no longer an agrarian society. Do you think the local govt is going to come in and ask you to change something done 30 years ago. Particularly after the court documents (i.e. the govt) did not say it was there. The answer is no because there are many such instances of illegality in the old days.
Foreclosed properties are one of the best kept secrets in Japan, and thinking people are engaging in the market. Japan is full of 'safe' people, but given the number of people, the country still manages to pack a city office on bidding day. But it has many more foreclosed houses , so its quite an opportunity. You don't have to pay thousands for a broker to guide you through the process, you choose to. There is a book on this website for those who tread where others fear. Japan is not the only oppportunity, but its a hell of a nice place to live, and it is the cheapest. I couldn't find a cheaper place in the Philippines at the same standards of housing. And far better facilities.
PS: Risk is managed, not avoided. One persons perception of risk is another man's opportunity.
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Andrew Sheldon www.sheldonthinks.com
[QUOTE=Base]The keibaiyasan (foreclosure "helpers") charge high because auctioned places are full of properties with easements and other problems. You can get burned easily if you don't know what you're doing, which is why regular Japanese don't participate.[/QUOTE]
Problems, problems, problems. Risks are not avoided, they are managed. There is so much 'scary risk' priced into foreclosed property in Japan, only an absolute idiot would lose money. Now, when I think of risk management, I don't consider the Japanese to be among the most prudent in the world. Why? They are risk evaders rather than risk managers. Of course we can all huddle in our parents home until they die, or we can step out in the real world and build/buy our own home. Its hard to finance a property anywhere in the world. Japan offers the promise of buying a very cheap place for cash, and you can actually profit just on the purchase.
This guy talks about the risk of the property having easements. If you think about the actual risk involved, quantify/qualify it, it really is a small risk, and easily managed. For instance:
1. I would not expect new subdivisions to have land boundary problems because they are surveyed from fresh development title. Old farms in rural areas could have problems like these because they have multiple houses owned by family, then family members sell to strangers.
2. I would only expect easements to be a problem if you are building a new place. If you are happy with the existing home, again, so problem exists. If you intend to demolish and rebuild (which you shouldn't do), then you build within the context of the constraints.
You will come across farm houses which will have unlicensed buildings, underwater water storage banks, septic systems, etc. Do you need to fear? Japan has only been a highly organised society for the last 30 years. Before that it was the 'Wild West', people doing as they pleased. This is the culture in the rural areas. Now Japan has cities because its no longer an agrarian society. Do you think the local govt is going to come in and ask you to change something done 30 years ago. Particularly after the court documents (i.e. the govt) did not say it was there. The answer is no because there are many such instances of illegality in the old days.
Foreclosed properties are one of the best kept secrets in Japan, and thinking people are engaging in the market. Japan is full of 'safe' people, but given the number of people, the country still manages to pack a city office on bidding day. But it has many more foreclosed houses , so its quite an opportunity. You don't have to pay thousands for a broker to guide you through the process, you choose to. There is a book on this website for those who tread where others fear. Japan is not the only oppportunity, but its a hell of a nice place to live, and it is the cheapest. I couldn't find a cheaper place in the Philippines at the same standards of housing. And far better facilities.
PS: Risk is managed, not avoided. One persons perception of risk is another man's opportunity.
----------------------------------------------
Andrew Sheldon www.sheldonthinks.com
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