Recently a number of Aussies have started investing in a small ski resort in Japan which now is earning the nickname ‘little Australia’.
Im interested in seeing if the property values in this town will increase or decrease.
The general guide in Japan is for the value of the building (houses and units) to decrease overtime as the land stays about the same.
A house that is worth $300,000 depreciates in value to $200,000 after about 10 years, 100,000 after 20 years and then lets knock it down and build another $300,000 house after 30 years.
Makes you wonder why you would want to buy even if the loan is less than 2%.
Then again if it is an investment commercial property thank god for Japanese realestate agents, maybe. Imagine you are the owner of a property that the tenant has just vacated and you want him to find a new tenant. The realestate agent decides how much the rent should be and how much bond money should be paid, which is normally not refunadable to the tenant. In my area the bond is between 6-10 months. The realestate agent takes his 1-3 months worth and the rest is used to clean up the property after the tenant vacates. This cleaning up may include removing all carpets, electrical fittings such as lights and even stripping the paint off the walls so the place is a nice bare concrete shell. Someone walking down the street sees a sign on your building stating it is for rent, the internal and maybe external size of the building and the agents number. When they ring the agent the person is told to come to the realestate office to find out more information as most agents are reluctant to say anything over the phone until they have met the person in person. Upon meeting the person the agent will probably decide if the person is suitable and will then ask them a 101 personal question that may or not be relevant to renting the property. If the agent is satisfied with the persons answers then the agent will give the details of the property. Some properties in my area have been vacant for 2-3 years. At one particular property the agent was offerred about $100 less per month than the asking price of $1700. The agent said the price is fixed and can not be altered. This property is still vacant nearly 3 years later.
I’m wondering how long would these agents survive in Australia?
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