00:00:00: When you're purchasing a condo, it's reinforced concrete building.

00:00:03: So obviously well built but once they get beyond thirty-thirty five years of age maintenance and renovation expenses start escalating which is when your building fees will start rising more rapidly.

00:00:17: so if you buy something And you are paying I don't know say fifteen thousand or twenty thousand yen a month in condo fees there's good chance that doubling within the ten years after your purchase, if you buy it over thirty or definitely over thirty-five.

00:00:35: So to stay within your budget and still satisfy that age requirement.

00:00:41: so we're making sure your building fees are not going out of control too soon... You might have to compromise and stay close enough to center where you feel uncomfortable.

00:00:49: then you may need to compromise on this size a little bit but we could get lucky!

00:00:53: We'll see how.

00:01:09: Either folks and welcome or welcome back to Nippon Trading International's Japan Real Estate Podcast.

00:01:14: I'm your host, Ziv Nakajima again And this podcast is brought you among others by Emil Gorgies of realestate.jp.

00:01:21: He's a Tokyo real estate agent who specializes in serving international or mixed nationality families Who are looking for the perfect family home.

00:01:29: So, Emile is an Australian.

00:01:30: He's been living here in Japan for over two decades now and for about half of that time he has been buying selling and managing real estate properties... ...in Tokyo on behalf his own family and the great many happy clients And also acts as a mortgage broker on behalf of this client.

00:01:45: so he got dedicated loan officers.. ..and many Japanese megabanks.

00:01:49: And if you're a regular listener of the podcast, You probably already know him from our JREP The Japan Real Estate Experts Panel Sessions.

00:01:56: Which means that your allready awareofthe fact That the man is an absolute fountain Of wisdom on all things related to real estate in japan and In particular To family homes ,The greater Tokyo metropolitan area & mortgages.

00:02:10: Most importantly he's incredibly generous with his time & advice which Is more than happyto provide at no cost or commitment to anyone asking.

00:02:18: So If u've been thinking about buying your home in Tokyo but you've been sitting on the fence for a while or All right, so just a quick heads up and some housekeeping before we get into today's episode.

00:02:39: Firstly I know you're all chomping at the bits.

00:02:41: We are to The downloads page with all of last summits video presentations And slide decks and photos and highlights reels is almost ready.

00:02:49: Bear With Us another week or So as Of the recording of this Episode were Just entering Golden Week one of the longest holidays of the year here in Japan?

00:02:57: Everything Is A bit delayed but we promise To have it Already for You As Soon as Humanly Possible watch this space will not take much longer.

00:03:05: Also, one of the video presentations you'll be able to see on the downloads page is a live demo that we did with our exciting new product The Japan Investment Real Estate Insights Studio.

00:03:16: If you recall what I mentioned before it's a pocket version of me That is to say professional investment property deal analysis An AI tool that has been trained by me and based my fifteen years experience doing exactly on behalf of our clients and for a fraction of the price that will actually cost you to retain my good services in person.

00:03:36: So, The live demo from this summit.

00:03:38: we'll be coming your way soon as mentioned but meanwhile feel free to hop over to jre-invest-eval.com.

00:03:45: That's JRE for Japan real estate hyphen invest hyphen eval or four evaluation dot com.

00:03:51: check out the sample reports that are available on the websites then register.

00:03:57: find any Japanese property listing that is actually tenanted.

00:04:01: The system can only analyze tenant properties at the moment, although we will soon be releasing an update.

00:04:06: they'll also be able to handle vacant listings and project assumed rental income figures And maybe even short term stay Airbnb properties.

00:04:13: again watch this space for more exciting updates but it's already super useful as it is in its current state.

00:04:19: so If you are the type of person who's been on the fence, not quite ready to pull a trigger or pay our consulting fees just yet but have been browsing Japanese property websites checking out investment property listings and wondering how attractive they really Super insightful and thorough analysis of these listings it'll break down the real numbers for you.

00:04:44: so cash flow yields return on investment purchase in running costs.

00:04:48: it will do a risk analysis.

00:04:50: An actual investment grade free to compare, And again, you can give it a spin for free.

00:04:54: So hop over to jreinvesteval.com and try out yourself!

00:05:03: That's actually really good.

00:05:04: segue into todays episode which is the call that I've had recently with couple based in Hawaii both of Japanese descent.

00:05:11: We also have short chat about their residency & visa options as such And while they're not looking for a tenanted investment property, They definitely do require some consulting and analysis which is exactly what we've done on this call.

00:05:25: So there in the market For a holiday home at a budget of up to about twenty million Japanese yen or About one hundred and twenty two twenty five thousand US dollars and their focused On larger or medium sized cities mostly so Fukuoka Sapporo Yokohama Kyoto Osaka Ennara In Their Case.

00:05:44: So we look at what their budget would potentially get them in these locations, how remote management would work.

00:05:51: What life is actually like in all of these different cities with a particular deep dive on Fukuoka and the areas around it?

00:05:58: We talk about how old the property should be... ...how we conduct due diligence on condo units specifically.. ..what the purchase costs are and what they actually consist of.

00:06:07: how to find listings, how to work with Japanese agents.

00:06:10: How remote viewings and offers-to-purchase work?

00:06:13: How to remit funds into

00:06:14: Japan?".

00:06:15: And of course we can assist in what their next steps should be if they want to get started which they have since this call was recorded.

00:06:22: So enjoy the conversation!

00:06:23: I'll see you again on the other side.

00:06:26: Okay.

00:06:26: so before we dig into the map and the listings maybe give me a bit of background.

00:06:31: You said about twenty million yen and your focused around Fukuoka city but Just give me a bit more of your personal background.

00:06:37: what exactly how often?

00:06:39: What type of property?

00:06:40: you've mentioned condos.

00:06:41: What are you gonna be using it for?

00:06:43: and so forth.

00:06:45: So we're originally from Hawaii, but have been living in San Francisco For the last thirty years or so were both Japanese descent enjoy going to Japan And really Are looking for this property just as a retirement opportunity for us.

00:07:10: We had a couple friends actually who recently have bought places in Japan, Hokkaido and outside Tokyo Yokohama And so hearing them go through their processes we were like well maybe it's not far of the field to explore.

00:07:35: So truth be told in complete transparency, we also reached out to someone in Hokkaido because that's where our friend who was really encouraging which is like you can talk through this guy up there.

00:07:50: The big

00:07:51: difference and the climates between Hokkaida and Sokoka?

00:07:54: Yes!

00:07:55: And so... That kind of.

00:07:57: why were just looking at frankly Tokyo and Kyoto?

00:08:05: for us would have been great, but there's just no way I don't think that we can afford That.

00:08:10: And so outside of that it was Hokkaido and Fukuoka.

00:08:15: We love.

00:08:17: you know Kyushu has a lot more of.

00:08:23: You know A lot more.

00:08:24: the people from Hawaii immigrated From Kyushuu area Kumamoto and whatnot.

00:08:29: my family is from Kumamoto.

00:08:31: originally We don't have any connections with them still, but anyway was just interested in looking at it first.

00:08:46: You know you hear so many things about Akia and all of that.

00:08:50: But we are not DIYers and we're not going to be fixing up or taking care of that.

00:08:56: And I think, mainly thinking the condo would give us more flexibility with management... Mainly property management from afar knowing there

00:09:12: are limitations.

00:09:13: Small hands off for sure yeah!

00:09:15: Yeah also i think There are limitations for us being in country because of the visa status.

00:09:24: We heard that there might be a way to work around it with our heritage, but... Yeah!

00:09:36: But I think That's more meant for people who actually want to move here, I'm assuming.

00:09:44: Was that something you had in mind or were still just visiting a few times of year kind-of thing?

00:09:51: I think we'd start there but potentially... We don't have children and both our parents are.

00:10:02: my dad is the only one still living You know, he's also not doing in great health.

00:10:11: And so there is nothing really tying us here.

00:10:14: I think it was more just giving us the flexibility that if we wanted to stay longer than The six months you know the hundred eighty days That might be possible

00:10:25: or three okay?

00:10:25: So put that aside.

00:10:27: If you want to Just remind me via email later i'll Put your touch with an immigration lawyer who can help With.

00:10:31: out of that Just a few comments on what you've said so far.

00:10:36: So first off, within Tokyo's twenty-three words is not an option at your budget I would assume.

00:10:44: but other places like Yokohama the Far Western suburbs of Tokyo like Hachioji Saitama city those are all places that are within thirty to sixty minutes from central Tokyo or Chiba City i think be able to buy you something there, so that's just because... You don't have direct flights from Hawaii to Fukuoka do you?

00:11:07: No.

00:11:10: Just something to think about if you're not officially within Tokyo's twenty-three awards.

00:11:15: There are a few more options.

00:11:16: Okay

00:11:19: That's doable I mean But we'll go over your locations in a minute, but parts of Fukuoka are very similar to suburban Tokyo price-wise.

00:11:28: It has been doing well the last decade plus

00:11:31: Okay.

00:11:32: So just something to consider around Kyoto and Nara might be within your budget I think.

00:11:37: And Nara is what?

00:11:38: Thirty minutes to Kyoto and Osaka or forty minutes?

00:11:42: Right.

00:11:42: actually i would prefer that.

00:11:45: I don't know Tokyo.

00:11:46: it's like great.

00:11:47: I don't want to be in the hustle and bustle of it.

00:11:51: It's a bit much, yeah...I love Tokyo but i love going there and then coming back exactly not somewhere i'd like to live.

00:11:57: Yeah But Nara is lovely.

00:11:59: we've got quite a few customers who have purchased their actually.. I'm a big fan of Fukuoka myself ..i lived here for uh fourteen years now best city ive ever lived in ...but um you mentioned a few other locations.

00:12:11: let me just bring your email up Tak, you should give me a second.

00:12:20: Right?

00:12:22: And that was mainly starting in Fukuoka and not again knowing but then looking at more.

00:12:32: what can our money buy?

00:12:34: sort of just doing research of retirement best places for retirement kind.

00:12:42: So, I'll

00:12:44: go through your list one by one.

00:12:46: The Zaifu... Have you visited all these places?

00:12:49: By the way or is this just a map?

00:12:50: No!

00:12:50: I mean like

00:12:51: the Zaifuu.

00:12:52: yes Itoshima no Kitakyushu we passed through it.

00:12:57: Okay

00:12:59: so the zaifuu is lovely but sleepy kind of temple tourist town.

00:13:04: yeah so you're close to Fukuoka But the Zaifuu itself when you come out of the house there's not that much to do except souvenir street leading to the temple complex.

00:13:13: Okay, good

00:13:15: to know that's exactly the kind of insight we're looking for.

00:13:19: yeah Kitakyushu is interesting but it's very blue color industrial kind of rough around the edges.

00:13:26: so okay there are parts of it that are more lively city centrish but its nowhere near Fukuoka.

00:13:38: The suburbs of Fukuoka, well it depends on which suburbs you're thinking about.

00:13:44: We've got one kind of alternative city center around Nishi-jin Which is three or four stations from Tenjin Hakata.

00:13:53: That's a very lively area.

00:13:56: If you head towards the southeast a little bit along the train line then Takamia the area around Takamiya station has lovely area.

00:14:06: Beyond that once you get past Hakata station to the east and passed Nishijin Fujisaki, to the west.

00:14:13: And pass Takamiya's to the south it becomes more suburban.

00:14:18: so I don't know how close to city center do you want to be?

00:14:22: I mean for Koka is not Tokyo.

00:14:23: The City Center Is Not That Oppressive.

00:14:25: So How Far From It Do You Want To Be

00:14:31: Truthfully?

00:14:31: Well i Don'T Know that.

00:14:34: I think it's just more like you were saying, we don't want a sleepy town where there is nothing else to do once everything rolls up at seven p.m or whatever?

00:14:44: I would definitely rule out this life when Itoshima City...Itoshima city is amazing for lifestyle!

00:14:49: By the beach by mountains great galleries and cafes.

00:14:52: but it is sleepy after seven pm yet.

00:14:56: You wrote mojiko i'm assuming you mean moji in Kitakyushu.

00:14:59: that way are referring too Mojiko, maybe?

00:15:05: So that's a sleepy part of Kitakyushu.

00:15:07: Again it is lovely place.

00:15:09: you've got good friend who lives there with the family.

00:15:12: I think he has five children and half.

00:15:14: so yeah definitely battling population trend but its suburban kind of residential area.

00:15:26: no where near not as sleepy as some other places, but it's suburban.

00:15:33: So of the places you're describing central Kitakyushu and suburban Fukuoka to a point are probably taking those boxes.

00:15:43: I'd say

00:15:44: Okay And that was

00:15:48: Nishijin?

00:15:50: Nishikku is the entire western world.

00:15:53: That's a huge area that covers a lot of place.

00:15:55: Nishigin is one of the subway stations Okay.

00:15:59: It's within Sawaraku actually, not Nishiku but that is a very lively area in the evening as well.

00:16:04: one station to the west of it which is called Fujisaki okay?

00:16:09: Very walkable from Nishijin.

00:16:11: about seven minutes' walk there and you go on station beyond.

00:16:16: Muromi Station starts getting a little bit sleepier.

00:16:20: And when you're heading out of Hakata station, sorry.

00:16:25: Out of Tenjin Station to the south that's the train line not the subway line and You've got Yakuin I could get the name.

00:16:38: The next station and then Takamia.

00:16:42: Those are still quite lively areas.

00:16:45: one station beyond is Ohashi station.

00:16:47: it getting there, a bit of urban rejuvenation starting there and it's within walking distance to Takamiya station.

00:16:55: so worth checking out because prices would be lower.

00:17:00: Which one was that again?

00:17:01: Sorry!

00:17:02: Takamiyah Station is the last bustling area.

00:17:07: then one down from there is Ohashi.

00:17:11: So between those two stations I will definitely check On the other subway line that's going west.

00:17:21: I would look at all the way up to Befu station, BEFU.

00:17:25: Wow!

00:17:27: Okay...

00:17:31: That is still a very fun lively area.

00:17:36: similar to Takamiya and Ohashi, Ropponmatsu Station.

00:17:39: it' s really gone through urban rejuvenation in the evenings.

00:17:43: One beyond is Befu which again five-seven minutes walk.

00:17:48: that's starting to happen, so more places opening and property prices there will be a bit cheaper.

00:17:54: Okay but it's up-and-coming?

00:17:56: Ropunmatsu has already happened.

00:17:58: the next one is Befuyae.

00:17:59: That what we believe will be up in coming not first of all... But we hope so!

00:18:05: And then going northeast of Hakata I'd go as far as Gofuku Machi station And beyond.

00:18:17: that is getting a bit sleepy again.

00:18:19: East south of Hakata, sorry east of Hakatah.

00:18:23: I mean it's still considered technically Hakata but its again getting blue color industrial.

00:18:30: there are bars and places open in the evening But Its more blue collar kind area not really funky.

00:18:37: Okay this is great.

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00:20:50: Hearing you talk I think yeah we probably want to be a little bit closer into the city.

00:20:55: so this is great to understand.

00:20:56: sort of where...

00:20:58: Yeah but to get to get seventy square meters for twenty million was that twenty million yen or two hundred thousand us?

00:21:04: Sorry i don't remember the email.

00:21:06: Twenty

00:21:07: million yen.

00:21:08: So to get seventy square meters and twenty million you'll really need look at those last stations that I've mentioned, the edges of it.

00:21:15: And maybe compromise a little bit on the size.

00:21:17: i'd say

00:21:18: Okay...

00:21:22: You could get these kinds places in older buildings but then we should probably start talking about condos now.

00:21:27: so when your purchasing a condo its reinforced concrete building obviously well built But once they got beyond thirty-five years old maintenance and renovation expenses start escalating.

00:21:41: Sure, which is when your building fees will start rising more rapidly.

00:21:45: so if you buy something And you're paying I don't know say fifteen thousand or twenty thousand yen a month in condo fees There's a good chance of that doubling within the ten years after your purchase If you buy it over thirty or definitely over thirty five.

00:22:03: So to stay within your budget and still satisfy still satisfy that age requirement, so we're making sure your building fees are not going out of control too soon.

00:22:13: You might have to compromise and stay close enough to center where you feel uncomfortable.

00:22:17: then you may have to compromise on the size a little bit but we could get lucky!

00:22:21: We'll see how it goes.

00:22:23: Okay Yeah I mean again That actually was one.

00:22:33: my questions is How often do the HOAs really increase every year?

00:22:40: or is it more like that?

00:22:41: That's

00:22:41: a big part of the due diligence.

00:22:43: I mean, that is the main part.

00:22:45: so we conduct on condos to review buildings' renovation history and how much they've got in reserve funds.

00:22:53: see when we think next big renovation will come up with enough money for it.

00:22:59: if not then obviously have to raise fees.

00:23:03: It's a case-by-case situation.

00:23:04: Some buildings are better managed, some are not... ...some have kept the building fees as low as possible to keep it attractive for owners and now if they build gets older there is suddenly going to triple because you just can't help anymore.

00:23:15: so that doesn't necessarily mean bad management.

00:23:18: but they've kept them as low or as long as they could.

00:23:21: then thats coming into an end of their building ages.

00:23:23: So

00:23:24: I see

00:23:25: Its something we need to look at case by case.

00:23:35: But there are no special, a very rare that they're special assessments and you suddenly hit with the few thousand bucks per owner.

00:23:42: That doesn't happen much in Japan.

00:23:43: They'll usually try to plan ahead for them.

00:23:46: Okay

00:23:51: Um Yeah but we also mentioned their.

00:23:52: so a bit of contradiction because he mentioned it.

00:23:54: You prefer smaller building.

00:23:57: I know

00:23:57: well Smaller buildings or often self-managed meaning The owner union doesn't really have a Building Management company in place?

00:24:04: They just tried To do It themselves.

00:24:06: And if they're not seasoned investors, then they often don't do a very good job just because they don't know what they are doing that well.

00:24:13: So the smaller building is and definitely it's self-managed slightly more likely than its going to be facing in case of building fee hikes a bit more rapidly.

00:24:25: Right I think we only sort through that because one of places what suggested to us in Hokkaido was Ainosato and it kind of like a three huge building, dorms.

00:24:42: Oh monster building.

00:24:43: yeah I know that.

00:24:45: And so we don't

00:24:46: have too many of those around Pukouka Not that many around.

00:24:53: the other location i was thinking about for you maybe is semi-central Yokohama.

00:24:57: So there's not that much of that in those areas.

00:25:00: That something you find bigger cities I think.

00:25:04: Where was it in Hokkaido again?

00:25:06: It's called Aino-Sato, by the university town up there...

00:25:13: Yeah i'll bring that on the map but don't know if you're familiar with this one.

00:25:17: It seems pretty suburban as well!

00:25:20: There is a turn off of the building exterior.

00:25:25: As long as it makes sense.

00:25:36: Oh got it Kitaku Sapporo!

00:25:44: Okay, and that's pretty far from center.

00:25:48: I guess okay?

00:25:48: So maybe there are all right next to the university-I see that...okay yeah Right got it.

00:25:54: well we have those in Okaoka and Yokohama but a lot closer to Center than you'll be able to afford.

00:26:00: so That's probably not going to be something You run risk of looking at.

00:26:05: i think Not much anyway!

00:26:10: So i guess number one It sounds like Our budget is okay for like all in with taxes and...

00:26:22: Well, purchase costs can be worst case around fifteen percent.

00:26:27: So it's that twenty million supposed to be including purchase cost?

00:26:33: Yeah!

00:26:41: That gives us a budget of about seventeen point four three-four million at todays rates.

00:26:49: We'll see.

00:26:50: Okay,

00:26:51: if that's potentially yes.

00:26:53: Potentially possible but again you might have to compromise a little bit about being one station down from where you want to be or the property being a little smaller and whatnot.

00:27:01: I wouldn't compromise on the age of building though because it will hit in your pocket every month.

00:27:07: So what is all this you would look at?

00:27:11: Ninety one right is sort of where

00:27:15: nineteen eighty-one.

00:27:16: Is the latest earthquake resistant standards, but that's already over forty years.

00:27:20: I go younger than that.

00:27:21: i'd go Thirty years and younger if I can make it thirty five.

00:27:27: That most if not

00:27:28: okay?

00:27:29: That's what I was kind of aiming for as well.

00:27:34: Okay um I mean I think you know The twenty with fifteen percent over Could be potentially That

00:27:46: could be up to twenty-three worst case.

00:27:49: Okay,

00:27:54: it's mainly less

00:27:55: hopefully less than that we're assuming worse case because We don't know.

00:27:59: the official evaluation of the building is always a bit different to market price and The purchase tax in the legal registration fees are based on the official Evaluation so we're not actually gonna Know the exact purchase cost until you get closer to settlement when we see?

00:28:16: but normally worst case, fifteen percent.

00:28:19: Gotcha okay

00:28:25: and some of it is paid like the purchase tax which is about Worst Case two-and a half percent of that.

00:28:30: That's A statement that you get in need to pay somewhere between six To twelve months after The Purchase.

00:28:35: so a little bit Is kind Of stretched out?

00:28:43: Up up to two point five usually around Two percent But up to one and a Half to two and a half is Usually what It ends up being.

00:28:49: Okay.

00:28:58: Yeah, because I mean basically we're trying to do it.

00:29:00: cash in hand right?

00:29:02: So as opposed to... Because there's no financing or anything available

00:29:08: Not from Japanese lenders.

00:29:09: you might have something available at home but the interest rates are not nearly as attractive back home.

00:29:14: is that

00:29:16: Right?

00:29:17: yeah

00:29:21: If you're going for Tokyo or very close to Tokyo, there is one lender that I can introduce you too who let's you borrow it.

00:29:27: around four percent.

00:29:29: Okay.

00:29:33: They...I think they would probably consider Yokohama for sure?

00:29:38: Okay again

00:29:42: we are

00:29:43: hoping There's some buffer there.

00:29:49: It would just you know, we didn't want to exhaust everything.

00:29:52: Yeah for

00:29:53: this

00:29:53: and look what?

00:29:54: We could get lucky.

00:29:55: We could just find something that I mean economy has not been doing super well.

00:29:59: So I haven't noticed huge hikes in property prices or might be something still available at this budget i think.

00:30:05: Okay

00:30:07: You've looked it.

00:30:07: you've looked at some listings yourself.

00:30:09: do you wanna review them together?

00:30:10: maybe you found something?

00:30:11: That's already

00:30:13: sure.

00:30:13: I mean again as I stated This was just me like looking at what's out there for the price that we are without work.

00:30:23: Let's look over them and it'll give you an idea of What kind of feedback or due diligence?

00:30:28: We might have as well, uh, what am I sharing?

00:30:31: I'm sharing.

00:30:32: So i'll open your map.

00:30:34: Are you seeing my screen?

00:30:35: yes

00:30:36: Yes nothing.

00:30:37: so Well let's focus on Fukuoka city for a moment.

00:30:42: Oh You've only got one day because

00:30:44: It wasn't much.

00:30:51: There is out of the city, right?

00:30:54: Yeah.

00:30:54: Well or there are those gray hearts that yeah it was.

00:30:58: that's out of Fukuoka City as well.

00:31:00: Oh see okay.

00:31:01: So I was having a hard time finding anything that seemed viable in Fukuokka itself.

00:31:08: Okay at the range That's where

00:31:10: i'd probably bring a realtor into search for us.

00:31:15: They mean we get paid for work that we do as we do it and they get paid on settlement.

00:31:21: So, its probably not a bad idea to use them to the research but hopefully you'll find something.

00:31:27: just bear in mind that real tours.

00:31:29: I'm very happy to introduce you to one like Hannah wrote in an email.

00:31:32: But Real Tours tend to be... They're professional in Japan definitely by book but they are not super strategic meaning kind of conversation about watch out for the age of building, what you want to look at for due diligence.

00:31:49: They're not going do that much so their job is help find listings and make sure purchase goes through legally smoothly.

00:31:58: on your behalf The one I'll introduce will be bilingual.

00:32:03: they handle it remotely but don't expect them strategic Right, but if you'd like we can join in as a consultant for small fee Just under a thousand.

00:32:15: Oh actually today's rates more like seven hundred bucks.

00:32:18: And then will hold your hand guide the agent on what due diligence We want done.

00:32:22: review documents before you sign them make sure there are no any surprises In their that kind of thing.

00:32:26: so always available to do that If you need us too.

00:32:28: But don't feel obliged also happy to just introduce.

00:32:30: You know

00:32:32: I think we would like help through this process As opposed it is going on our own especially because again, we've visited Japan a lot.

00:32:44: We love it but...we just don't have the local knowledge.

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00:34:55: and now back.

00:35:10: Hokkaido was sort of just nature and, you know some things were not necessarily like... We actually we're-we haven't been to Hokkaida during the summer or spring time.

00:35:22: And that's what we were.

00:35:23: thinking would be nice but Actually Dixon is also really interested in Yokohama But I just again kind of didn't think That we could find something there.

00:35:36: I

00:35:36: think if you're interested in checking out both, then i'll probably appoint a Tokyo based agent because the ones that we work with in Tokyo will be able to handle the purchase nationwide and anything that's hands-on... If you end up purchasing in Fukuoka or anything related to hand on work than You can rent us by the hour To do any remote viewings Or go inside the contract on your behalf for Anything like that?

00:36:02: I see.

00:36:03: Okay,

00:36:05: great!

00:36:07: But that's only if you want to check other locations... If you wanna focus on Fukuoka then i'll introduce you the Fukuokaa agent.

00:36:12: Maybe Yokohama would be good because of the proximity to the airport.

00:36:22: Yeah That is the only thing im thinking about.

00:36:24: You don't need to sell me on Fukouka It s best city in Japan In my opinion but it will be a bit of a schlep To get here every time your flying.

00:36:31: I mean if you fly into Osaka, it's only another one hour on a budget airline.

00:36:38: If you really want to

00:36:40: Yeah.

00:36:41: I mean that kind of the way that we had gone down as well was came in to Narita and then just take a hopper plane Down

00:36:51: but doesn't hurt so we can route an agent who will look at both cities for you.

00:36:55: That'll be an agent based in Tokyo And honestly, that's where the best agents that we work with are most of the time as well.

00:37:02: If it ends up being for coca, then yeah.

00:37:03: Then we'll do the legwork for you here.

00:37:06: Okay great Um.

00:37:10: So I i do think we are interested in.

00:37:12: Yeah, I guess so once the process Start or how do we actually kick off things?

00:37:18: and do I still?

00:37:19: Do I just turn it over to the agent Or do I Still keep researching on my own?

00:37:25: or first

00:37:26: of all It's a lifestyle choice in your case.

00:37:28: So you're always going to be the best filter Because you can look at a property and quickly know if it takes your box.

00:37:34: Oh, by the way You mentioned their tatami room And I wouldn't.

00:37:38: It's very cheap to install tatamis in any bedroom So it's less than a thousand bucks to deck out that bedroom with tatami.

00:37:44: so i wouldn't focus on That as criteria If it's not there.

00:37:47: okay

00:37:48: Okay?

00:37:48: We'll give the agent Your criteria.

00:37:50: they will definitely happily research for you.

00:37:52: but again you're gonna be The best filter.

00:37:54: so how are you looking For properties of the moment?

00:37:56: which websites or yarn I was

00:37:58: just looking... So, i did go through Sumo and at home first but then I found friends that F. Taku

00:38:12: or Kyushu

00:38:12: specifically.

00:38:14: so I was going through that And I had found Hatomaku for Hokkaido as well.

00:38:26: The listing was easier to read for me from those versus Sumo and At Home.

00:38:32: If you

00:38:32: want something that's more Zillow-like in English, with dynamic map interface like we used it on the States I'd probably go for Akia Mart if you know them?

00:38:42: So i tried them but...I feel like you need to know the area In order to use it.

00:38:50: Versus I didn't.

00:38:51: You could just plug in Search All And It Would Go.

00:38:55: Maybe I just don't understand the interface.

00:38:59: Well, not sure what was that on there?

00:39:00: On the free version because that only goes up to twenty thousand us i think

00:39:04: yeah maybe That's it.

00:39:05: then

00:39:07: if you want to give them a shot um Just use.

00:39:11: Use my name as a promo code and check out.

00:39:13: It'll Give You A Discount on The.

00:39:16: on The Pro Subscription oh Just My Name is at IV

00:39:22: ZIV.

00:39:22: Yeah okay

00:39:25: Well, they advertise on our podcast.

00:39:26: So we have a promo code that we can give customers.

00:39:29: Gotcha!

00:39:31: Okay...

00:39:33: But it's just an easy way to search in English and I'm not sure how many condos you've got?

00:39:38: They scrape all of the major property websites so definitely should have some condos there but that is easiest for me know to searching english anyway.

00:39:46: And otherwise yeah agent will search for your as well but its gonna be more hit-and-miss because don't live into head kind thing

00:39:53: right?

00:39:58: Yeah, I actually it wasn't with Google Translate.

00:40:01: It's not that hard to look at things

00:40:02: now just the interface is clunky and annoying right?

00:40:08: I think i'm used to it

00:40:10: yeah

00:40:11: but um yeah i'll check out Akiyama again.

00:40:17: so then The next steps would be um output you in touch.

00:40:20: So i'll get Just a blank email reply to your last email with my signature.

00:40:26: So you'll have my mobile number there.

00:40:28: if you could add me on WhatsApp, okay?

00:40:31: That's usually where I'm most responsive and that's were the agents that we work would will be more responsive as well.

00:40:36: so i'll kick off for what's up chat group With uh...I see which agent is most readily available And then i'll take of a whatsapp chat group with them.

00:40:43: Okay just let me know before.

00:40:44: Then If You Want Me To Just Introduce give them your list of criteria, we'll get them to focus on Yokohama and Fukuoka.

00:40:57: And once the process is pretty similar to what you used to oversee.

00:41:01: so if it's a vacant property where purchasing most of their listing agents will not accept an offer before somebody views the properties or The first step would be To send someone unless they happen to be here but otherwise We'll send somebody over On Your behalf to do remote viewings all the listings You're interested in.

00:41:18: They'll connect to you via Zoom, like we are now and they will show around the property.

00:41:21: You can tell them to focus more on this or that.

00:41:24: Let's just get... We need to pay whoever goes for a trip.

00:41:29: So let us make sure at least four of five listings.

00:41:33: so we're not wasting your time & money going out one day from listing another day from another listing.

00:41:39: Maybe do maybe one-day viewing of listings in Yokohama Another day viewings of listings found in Fukuoka I see.

00:41:47: And then you would be submitting an offer on the offer, we'll make sure that it's pending building investigation report which will give us that renovation history how much they got in reserve funds if they get any renovation plans just to given some idea of how the funds are being managed in the building.

00:42:05: and Then If there Are no red flags In there than We'll proceed To sign a contract at Which point You pay A ten percent deposit.

00:42:14: so The Offer is not Legally Binding.

00:42:16: We do need to note any conditions on it because if we just pull out without any advance warning, that agent will not work with any guy jeans again.

00:42:23: Because they label us as tire kickers and Japanese people don't do that.

00:42:27: so... On the offer we'll know all of our conditions.

00:42:30: then it's not legally binding but can be pulled back in case you don't like information from them.

00:42:34: If we do proceed sign a contract pay the ten percent deposit And about one month after that is settlement.

00:42:40: Then you'll pay for

00:42:40: rest.

00:42:46: And then for management, you said you're gonna be here up to six months a year.

00:42:51: Is that the plan?

00:42:53: Well... That's what we understand.

00:42:54: is the limit right

00:42:57: on a regular visa Right?

00:42:58: yeah

00:42:59: so and

00:43:01: is that going to be in one stretch?

00:43:03: or is it Gonna Be a visit every two months?

00:43:06: Yeah It's probably more than periodic.

00:43:09: Okay If You

00:43:11: can if you Can't be there Every two, three months maybe every two months if possible then you probably don't need any physical management like airing and cleaning.

00:43:23: but otherwise mold and humidity are a big issue here.

00:43:25: so you want somebody coming in.

00:43:27: If the place is closed for longer than two months at a time the mold will start accumulating especially in the summer

00:43:33: okay um

00:43:34: So depending on your frequency of visits uh if you just need your bills paid good, cheap company called MailMate that will do that for you.

00:43:49: If you need more physical work?

00:43:50: That's probably when people like us come in.

00:43:52: so if you need somebody to come and do the airing and cleaning... ...if you'll need someone to handle repairs or renovations furniture deliveries assemblies anything like that then we can do it as well.

00:44:03: We also pay your bills but we're a concierge type service.

00:44:07: we are pricier depending on whether needed.

00:44:14: Now if you're actively looking at property in Japan, You should check out Akiyamart.

00:44:19: That's a-k-i ya hyphen mart m-a-r t akiyamart dot com.

00:44:25: It's the Zillow of Japan built for buyers or actively hunting for home In japan and want to much more western style web browsing experience than The typical local japanese websites.

00:44:36: now we've got an exclusive thirty percent off promo code For the Akia mark pro annual plan.

00:44:41: That's the one that gives you full access to Airbnb zoning maps, hazard maps sold data and over half a million listings nationwide at any given time.

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00:44:56: so You can use my code ZIV at checkout And get thirty percent off your Akiyama Art Pro annual plan At akiamart dot com.

00:45:07: Let's just say everything works out and we get the house at Everything.

00:45:15: I Also understand.

00:45:18: I haven't done a lot of research into it, but like we can't open up bank account There in Japan right?

00:45:23: Yeah So you would just do everything from afar.

00:45:27: or Do we need to be there?

00:45:30: And so for the For the purchase itself The agent will be able to receive funds From You and distribute them domestically To where they need to go.

00:45:39: because again i'll put your touch with that foreigner-friendly bilingual, like somebody who's worked with foreigners before.

00:45:44: So they'll be able to handle all of the purchase expenses.

00:45:47: you just give them one bulk sum and then distribute it through the seller or the lawyer at the listing agent wherever he needs to go for management.

00:45:55: You will need somebody again mailmate ourselves To hold a retainer for you And pay your ongoing expenses from that.

00:46:05: That is included in any management service And you do want to make, are you with Wyze or FX any of those foreign exchange providers?

00:46:16: I just signed up with Wyse but i was curious.

00:46:19: I was going to ask about that.

00:46:20: OFX and

00:46:22: so all effects are Wyze are great up to about two maybe three million yen.

00:46:27: Okay They're limited.

00:46:30: in Japan they're limited to one million yen.

00:46:33: remittances Two, three million yen for example becomes two or three remittances which is not a big deal.

00:46:39: but beyond that multiple remittance can eat into the funds.

00:46:45: Beyond that I would probably sign up with OFX if you remind me on WhatsApp once we're connected there i'll send your referral link.

00:46:53: so will both get some bonuses when you sign-up.

00:46:56: Okay, great.

00:46:57: They don't let you hold a balance like wise do.

00:46:59: they're just point-to-point.

00:47:01: so You nominate the agents.

00:47:03: what when you do this settlement?

00:47:04: For example which is going to be about twenty million yen then you nominate The agent's bank account and they transfer the Full amount that you transferred to them in US dollars.

00:47:13: They pay out Japanese yen at the other end.

00:47:17: So for the purchase itself I'd use all effects for the smaller remittances along the way.

00:47:21: And for management i'd used wise.

00:47:23: okay perfect

00:47:24: Definitely don't let your bank exchange the dollars into Yens because they'll rip you off.

00:47:32: Okay, okay

00:47:33: unless it's a Charles Schwab.

00:47:35: I heard that have really good rates actually.

00:47:37: Okay no not we don't have Charles

00:47:40: Schwabs

00:47:42: and Citibank in Japan is not connected to Citiban here right?

00:47:47: Citibank

00:47:48: in Japan, I think closed up or sold and changed their branding to somebody.

00:47:53: Oh maybe there was some of the else that Citibunk bought?

00:47:55: I'm not sure which way it went.

00:47:57: Okay But I heard from a real tour that i'm in touch with in Hawaii That um... I forgot her name.

00:48:05: Let me just bring up her message.

00:48:07: I'll tell you the names.

00:48:08: There's one bank specifically in hawaii.

00:48:10: they did allow people open Bank account.

00:48:16: oh there she is

00:48:18: First Hawaiian

00:48:23: or Bank of Long way?

00:48:24: Yeah.

00:48:24: Oh, I'm not another...I have no memory aside from electronic memory.

00:48:26: there's no way I'm gonna remember

00:48:31: it.

00:48:32: Remember her name at least?

00:48:36: the bank is Central Pacific Bank.

00:48:41: yeah okay

00:48:42: they had a relationship with Tokyo Starbank but They'll require you to hold about seven hundred and fifty thousand dollars worth of assets with the bank to allow you to open another account in Japan.

00:48:56: Oh, wow!

00:48:56: Okay

00:48:57: yeah they're not easy

00:49:00: okay?

00:49:01: This is all off what she says.

00:49:03: I haven't had any client who actually tested it so i don't

00:49:07: know... So your EOS?

00:49:24: What was it called?

00:49:25: EOS right?

00:49:26: The document that She sent.

00:49:30: Explanation of services document?

00:49:32: Yeah,

00:49:32: thank you.

00:49:34: EOS.

00:49:35: yeah sorry just a stupid acronym and that's what we do for people who want us to do everything on their behalf.

00:49:42: That's an added layer of service beyond any realtor fees.

00:49:46: So your kind of paying it double realtor commission.

00:49:49: We charge similar to them.

00:49:50: And then instead of view having to talk to agents and lawyers You give us legal authority to act in Japan On Your behalf.

00:49:58: We do everything for you and you just sign the bottom line kind of thing, it's a more expensive but I mean your budget is pretty.

00:50:07: Pretty limited as this.

00:50:09: with the kinda property looking full i don't think he need that level of service.

00:50:12: to be honest

00:50:13: okay?

00:50:13: Working

00:50:17: working with us consultants will give me advantage over our expertise but you'll get some documents their way.

00:50:26: Okay,

00:50:28: okay.

00:50:30: But like you said well now that we're connected with you on WhatsApp and what is your hourly rate then?

00:50:40: For a single purchase rather than calculate every five-minute conversation which takes me five minutes to document I know it takes somewhere between eight or twelve hours.

00:50:49: so i just charge ten hour retainer Depending on when you pull the trigger, it's at the moment.

00:50:57: It is eighty eight thousand yen going up to a hundred and ten thousand in April.

00:51:02: Eighty Eight

00:51:03: Thousand Yen that about six hundred or five fifty I think?

00:51:08: Okay.

00:51:08: Oh no!

00:51:08: The dollar took a dive recently...I'm not sure how much that is..it definitely under the eight-hundred dollar mark.

00:51:13: i think its more like six six fifty right And then go up to one hundred and Ten which will make it about eight hundred.

00:51:19: okay.

00:51:21: so if we were just do this now

00:51:25: If you want to do that before April, then it's valid for a year.

00:51:28: Then we can just use that whenever you're ready.

00:51:31: Okay I think more than likely will be in touch for not another

00:51:37: problem.

00:51:38: But again don't feel obliged.

00:51:40: i'm very happy to just introduce You and jump up.

00:51:42: if you were buying For example the brand new property?

00:51:45: I'd say you Don't really need us because there's no gonna Be any issues that you need To look into.

00:51:48: but Because your bike second-hand It's probably A good idea to have somebody Looking over Your shoulder.

00:51:53: And so Just one more, like for Yokohama you would send somebody from Fukuoka.

00:51:58: or do have people who are more central to

00:52:01: Tokyo?

00:52:01: No.

00:52:02: So

00:52:03: if your looking at any major city that will hook up with an agent in the city Sapporo, Fukuokka Osaka and Tokiooka but If you're looking it's a little bit more than one city then the Tokyo agents we work on they'll handle purchase anywhere else.

00:52:18: so It is going to be a Tokyo Agent.

00:52:21: They probably go themselves and if when we're looking at Fukuoka, then they'll probably ask us to go on their behalf.

00:52:29: I see.

00:52:29: so it's more that... When you said someone would go out check out the property?

00:52:35: It would be The Agent or somebody.

00:52:36: some colleague of The Agents in Fukuoca will probably be That Colleague.

00:52:41: Gotcha, okay Okay And how long does this process typically take like How quickly do people find things or need to act on things once?

00:53:04: It depends, A. how picky you are and B. How stringent your budget is right.

00:53:09: okay in your case we're kind of borderline.

00:53:11: so I'm assuming it'll take us a couple of months to find the right place.

00:53:16: then another two months settlement hopefully within six months will be done.

00:53:23: Kind of I'm hoping for less than that.

00:53:25: but yeah worst case.

00:53:26: Let's say within six months Unless look if we see that there's absolutely nothing available at your budget, then it will start.

00:53:31: We'll need to have a conversation about what you can compromise on.

00:53:35: i'm assuming The easiest thing to compromise on would be size in your case.

00:53:40: so if it's fifty instead of seventy square meters Probably will be easier.

00:53:45: But let me know let's start with the top criteria and see how we go.

00:53:49: Okay?

00:53:54: Fifty is pretty small though, right?

00:53:58: Depends on who you're asking.

00:53:59: Most of our Japanese couple tenants are living in under thirty so I don't know.

00:54:03: Oh

00:54:03: really?!

00:54:04: Yeah and a single person would live in something that's under twenty square meters in most cases but obviously Westerners are used to much wider standards.

00:54:13: So...I totally get it.

00:54:15: But as if just- You said no kids!

00:54:18: Are there people coming to stay with once in one or anything like That

00:54:20: basically what we were planning for.

00:54:25: But

00:54:26: I'd say the apartment is well divided and Japanese are really good at turning compact spaces into more comfortable spaces.

00:54:34: And maybe something with a bigger balcony, even though they could be small...I don't know!

00:54:40: See what we see?

00:54:42: Okay yeah again that was just more going off of our understanding of square footage and i think Seventy came in about eight hundred square feet right.

00:54:55: so So yeah, no.

00:54:59: I think that's totally... We could take that off as a criteria?

00:55:03: No!

00:55:04: That's what i'm saying.

00:55:05: if you're not super rushed on time then let's start with your ideal property and work our way down from there If we have to.

00:55:12: Okay good idea okay sounds

00:55:15: great.

00:55:15: It's not gonna hurt to do some searches And then figure out that we need to compromise them.

00:55:22: Okay Fantastic Thank you so much.

00:55:27: This has been very, very helpful.

00:55:29: really appreciate taking the

00:55:30: time.

00:55:31: I'll wait for your message and what's up?

00:55:33: And then we will kick it off from there.

00:55:37: Okay great thank You So Much!

00:55:38: Really nice to meet you.

00:55:40: Same here

00:55:41: pleasure Looking forward to working or speaking again soon.

00:55:45: hopefully

00:55:46: We'll get there.

00:55:47: Talk

00:55:47: to you soon

00:55:48: Take care

00:55:49: Bye bye.

00:55:51: So there you have it.

00:55:52: A nice drill down and in my opinion, also a good exercise in narrowing goals and focus to help make your search process more efficient and less time consuming.

00:56:01: Hope we found some value on that!

00:56:03: Now... We can't let you go without telling all about Yen Loans our latest sponsor.

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00:57:07: And that's it from us for this episode, folks.

00:57:10: Huge thank you for tuning in.

00:57:11: please do follow and subscribe to the show.

00:57:13: if this is your first time listening... ...and we'd love it if you could like and even share this episode with anyone you think might fight interest in it.

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00:57:22: So please let us know what you thought about this episode or the podcast overall In the comments section here on our social media channels.

00:57:28: You've got a very active Facebook group & business page both under the name Japan Real Estate On Facebook And that's also the name and URL of our YouTube channel.

00:57:36: If you'd like to follow us there, Japan Real Estate on YouTube as well!

00:57:39: We would appreciate your rating or review on Spotify... ...or Apple Store or wherever you're tuning in from.

00:57:46: Hope to have with again a great rest day or night ahead!