In this page, I will let you know how to find a cheap property in Japan.
One of methods to find an cheap property is public auction ( Keibai or Koubai ).
Now, thanks to development of laws, possibility that you encounter difficult situation is lower than several years ago.
Even if there is a professional occupant, you may be able evict them without filing civil law suit.
If a property is located in center of Tokyo, possibility that you can purchase it much cheaper than market price is low.
But if the property is located in other area, you may be able to make successful bid at very affordable price.
Most of readers of this website can not understand Japanese language well, and even if you can understand, you need to find some specialist to understand documents issued from court house or municipal government.
And other than public auction, you can find suitable property in normal transaction.
There are some potential sellers and realtors who do not know well about market price of the property.
Or even if they know it, when seller wants to sell the property ASAP, they will try to sell it at low price.
A real estate investors ( hereinafter referred to Mr. Yamada ) bought a property much lower than market price.
The current owner could not find a renter for over 1 year and wanted to sell the property as soon as possible.
Mr. Yamada bought another property from an old woman.
She had lived by herself but began to live with her daughter and decided to sell the property.
Though, she did not hurry to sell the property, her realtor did not know about market price well.
When you try to purchase a property for investment, unless the selling price is already lower than market price, it is better for you to demand discount of selling price.
And when you demand for decrease of selling price, you need to specify any reason.
For example the property is old and need many costs to repair, there is a crack on the wall, boundary with neighboring lot is vague etc.
But if you demand decrease of selling price before you see the property on the spot, realtor will consider you as just a kind of tire kicker.
This history of Yamada’s purchase.
The original selling price : 4 million yen ⇒ purchase price :3.35 million yen.
The original selling price : 6.50 million yen ⇒ purchase price : 5.50 million yen
The original selling price : 1.90 million yen ⇒ purchase price : 1.60 million yen
The original selling price : 44.00 million yen ⇒ purchase price : 39.00 million yen
If you want to purchase a very suitable property, you need to keep on your effort and make preparation to purchase it at once.
When a property is very nice, you need to apply to purchase it ASAP.
Sales person at real estate company has her familiar customers.
She likes clients who have enough cash and common sense.
If a person demands stupid request for a realtor or takes a arrogant attitude, the realtor will not give you a valuable information.
If you want to find a suitable property, you need to find a reliable realtor or consultant.
And if you can make good relation with her, she will notify you of valuable property earlier than other potential buyers.
If you want to purchase a valuable property, you need to let a realtor know about your demand.
For example the property is located in city which is within 30 minutes from Shinjuku station by train. That was built after year of 1990, room area is over 40 square meters, the selling price is below 9 million yen etc.
Some foreign potential buyers demand me to find a property that is located in Minato ward and not old with wide room area, net yield on investment is over 10 %.
However, they should know they can not find such a property.
And if your realtor finds a property that can satisfy your criteria, you ( or person of your side) need to see the property at once, then if there is not any problem you need to apply to purchase it.
If a property meets your demand but you do not apply to purchase it, a realtor will consider you a tire kicker and your relation with a realtor will cease to exist.
Moreover, in the case you look for a detached house for renting out, you can search with the words ” 古家付”. This means ” land with old house “.
In this case, seller owns both land and house on it but she just sells the lot and gift the house on it.
Sales contract specify about selling and buying lot.
And this contract additionally mentions that there is a house on this lot and seller gifts this house to buyer.
And if buyer wants to use this house, he can do it.
If buyer thinks he cannot use this house, he can demolish it and build a new house.
He can purchase this kind of lot with useless house at very low price.
In some of cases, he can purchase it lower than market price of only lot.
Because, when buyer tries to demolish the house, it will cost some money.
In the case market price of vacant lot of 100 ㎡ is 1,000,000 yen.
Cost to demolish a house is 100,000 yen.
Seller will try to sell this lot at 900,000 yen.
Because, buyer has to pay cost to demolish a house.
But if a buyer purchases this lot with old house at 900,000 yen and
fix the house at 50,000 yen and renting out, his investment will success.
Because, he can purchase a lot lower than market price and acquire property right of house for nothing.
This kind of property is classified in ” lot “.
So, when you try to look for a cheap detached house at realtor’s website, you also need to look at page of lot.