The cheapest property in Tokyo is going to be a certain type of property, with certain types of characteristics, so its important to be weary. Risk is managed, not avoided. The difference between the people taking action and those who don't is information. My ex-GF was a licensed real estate agent in Japan, so we developed a strategy for buying property, and bought two properties together and looked at many others, and bid on 4 in total. Our focus was Tokyo, but we also looked at Shizuoka closely, and other areas like the ski areas.
So where might you expect to find the cheapest property in Japan. Well its likely to display the following characteristics:
1. A very old house that no one wants to live in - say over 50 years old
2. A very small land lot, maybe oddly shaped
3. A house with actually no land title - a leasehold - so you will end up paying rent - and face the possibility of eviction
4. Remote from transport, services, infrastructure
5. No road access - hard to believe its possible
6. Damaged property in some sense - so cheaper to demolish and start afresh
7. A property perched on the side of a slope with engineering/safety issues
This is the bottom of the market, and there are plenty of properties around like this that no one will touch. In fact its probable that you will not like them either, but they are there, and that is where the bottom is, so from that basis you can start looking up. So what will you pay for such a place? Well I don't know but I'm guessing a few thousand dollars only because its such a bad proposition. I have seen a property in Shizuoka at the end of a railway line, 2km from town, old 40yo house, crowded in among other houses, but otherwise a very scenic area, and in an area prized for its onsens. This property was offered for Y800,000 when I looked (say $US9,000). It was remote from a large city - say 4 hours from Tokyo - 2 hours fast, 2 hours slow train. I would pay $60,000 to get 6 hours from Sydney for the same thing. Way way outback!
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Andrew Sheldon www.sheldonthinks.com
So where might you expect to find the cheapest property in Japan. Well its likely to display the following characteristics:
1. A very old house that no one wants to live in - say over 50 years old
2. A very small land lot, maybe oddly shaped
3. A house with actually no land title - a leasehold - so you will end up paying rent - and face the possibility of eviction
4. Remote from transport, services, infrastructure
5. No road access - hard to believe its possible
6. Damaged property in some sense - so cheaper to demolish and start afresh
7. A property perched on the side of a slope with engineering/safety issues
This is the bottom of the market, and there are plenty of properties around like this that no one will touch. In fact its probable that you will not like them either, but they are there, and that is where the bottom is, so from that basis you can start looking up. So what will you pay for such a place? Well I don't know but I'm guessing a few thousand dollars only because its such a bad proposition. I have seen a property in Shizuoka at the end of a railway line, 2km from town, old 40yo house, crowded in among other houses, but otherwise a very scenic area, and in an area prized for its onsens. This property was offered for Y800,000 when I looked (say $US9,000). It was remote from a large city - say 4 hours from Tokyo - 2 hours fast, 2 hours slow train. I would pay $60,000 to get 6 hours from Sydney for the same thing. Way way outback!
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Andrew Sheldon www.sheldonthinks.com
1 comment:
You have a point in your article. Great blogging.
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