Reconstruction disables real estate in Japan

In the case, a lot with a house does not connected with statutory road with over 2 meters width, owner of house on this lot can not rebuild the house.
pic road 2 frontage

In the case a lot with a house that does not connect with statutory road, you can purchase it about 50% cheaper than a lot with a house that connects with statutory road.
And even if you can not rebuilt the house, in the case you rent it out, the amount of rental income will be same in both cases.

So, when you purchase Reconstruction disables house, you can expect higher yield on investment.

Demerit of such kind of property is that it is more difficult to find next owner.

When you purchase and rent it out, get enough rental fee, you may try to sell it to other person.

But, in the case of this kind of property, buyer cannot borrow money to buy it.
Buyer can not provide the property as collateral to borrow money from ordinary bank.
And next buyer has to prepare cash to purchase it.

If the selling price is high, it is not easy to find a person who has enough cash.

September 3rd, 2015.

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