00:00:06: And thank you all so much for attending today and as always, all of your interest in this.

00:00:18: My sessions often go for almost an hour.

00:00:21: I have Ziv at the back saying no please cut it down.

00:00:25: So i tried to make a short one This time and different from what we've done in past.

00:00:31: Let's see if can get up.

00:00:32: that is me.

00:00:34: AI does wonderful things.

00:00:37: Make me look bolder than I already am.

00:00:39: is a Is one of the magic wonders?

00:00:43: Okay, let's get into it right here.

00:00:47: Just click away like this.

00:00:49: Let me try.

00:00:51: Here we go.

00:00:52: so today i'm talking about buying smart all the ops Like these.

00:00:55: i've got two talks today.

00:00:56: One is in here.

00:00:57: The other one i think he's at one forty five p.m.

00:01:00: There's a list out the front on the lcd displays About their schedule.

00:01:04: that's about financing and borrowing smart to This.

00:01:11: one is about buying the internet.

00:01:12: You need to know about buying a home.

00:01:15: I've been doing this for twelve thirteen years now and I focus largely on family homes.

00:01:22: so A big thing we want to look at is how you can make the right choice?

00:01:26: And all the proper information, you need to find The Right Home For You.

00:01:32: One of the Big Ones i Want To Start.

00:01:34: Is you don't want to buy a fantasy home?

00:01:37: okay by the home that is useful for the next chapter of your life and I see this so often when people start they go, i want something that is going to be my base in Japan.

00:01:49: I will retire like When I retire.

00:01:52: it'll be a fantastic home but also For The Next Twenty Years whilst I have My Family It Needs To Be A Really Great Place From Me To Raise My Kids Close To Schools Close To Parks.

00:02:03: And These Are Very Different Stages Of Your Life Raising A Family Raising Kids And Then Retirement.

00:02:10: Okay, I'm you know midway through raising my kids.

00:02:13: I've got three love lovely children.

00:02:15: I say had to stutter when I put that in.

00:02:20: There's a lot of adjectives like news for mine from my kid But right now at this stage of their life It's being close to schools being closed elementary schools.

00:02:30: the eldest just started middle school.

00:02:32: He did the juken system which maybe some guys either have gone through or have heard about.

00:02:37: we went through all of that process and being part of the community in the local neighborhood.

00:02:42: So much of this is important things you need to be considerate about when you have a young family and your going through this chapter of your life, so trying find place that does too many thing.

00:02:58: it's not really possible.

00:02:59: there isn't gonna be a great property to raise a family also as a retirement.

00:03:07: Get the maximum upside when you sell it as an investment later.

00:03:10: You want to do all of those things really, really well?

00:03:14: You're gonna have to compromise on each of those factors Whereas if you find a place that is great for this next ten-to-fifteen years or maybe twenty years of life That's a lot more realistic.

00:03:25: A lot of my clients When they are single Maybe buying your own home isn't really the best choice.

00:03:32: If you were mid twenties I think i got alot guys here behind camera in their mid twenties that buying a home for yourself right now is probably not a good choice.

00:03:42: Renting is fantastic, okay?

00:03:45: But if you want to... When it's time to settle down and have family so usually late twenties maybe early thirties are lot of my clients just gotten engaged or got married.

00:03:56: That when I need foundation this next stage in life Once your at the step The Next one Is A House Or A Mansion to manage.

00:04:14: But a house gives you a lot more flexibility and freedom, so let me explain.

00:04:20: I have a large balcony outside my living room And i have a big webber barbecue grill gas barbecue grill out there and I enjoy barbecuing regularly.

00:04:32: never in my mind do I think someone is going to complain or if they do complain it's not a concern.

00:04:38: I'll just invite them over to the barbecue, because there's no body corporate.

00:04:42: There are management rules that need follow and guidelines or rules outside of general civil societal rules.

00:04:51: however in a mansion they're different okay?

00:04:54: I recently purchased a holiday home.

00:04:56: maybe some of you if you follow socials have seen me going up to Chiba last year quite a bit.

00:05:08: It's a nice big house, they're affordable.

00:05:10: They are cheap.

00:05:11: but just the maintenance of the garden or any kind of leaks is like at end of day.

00:05:17: I thought that i don't have capacity to look after and manage it.

00:05:21: so we ended up getting a mansion by beach with beautiful ocean view this winter time.

00:05:28: think didn't go for three months as stretch But doesn't matter!

00:05:33: I know its completely fine water not leaking in there.

00:05:36: The garden isn't overgrowing.

00:05:38: Okay, no one's broken in because it is not on the ground level.

00:05:42: There are no insects or what-not just entering there and no squatters going to be that.

00:05:48: but It has a different need for purpose.

00:05:51: In Tokyo I have a house And i like that freedom.

00:05:55: The kids can get a little bit noisy.

00:05:56: I don't worry about disturbing anyone underneath me.

00:05:59: So A big part of I think the House vs Mansion discussion.

00:06:06: Often when people step into it, they ask is this going to be a better investment?

00:06:10: Which one's worth more if I leave or which ones easier for me.

00:06:15: Kind of valid questions but at the end of day really important thing you prefer what your own preference because we're gonna live For next ten maybe twenty years as mentioned in previous slide If choose correctly.

00:06:30: So there are pros and cons with both.

00:06:32: House also has a car parking, which I think is fantastic.

00:06:35: if you drive... If don't maybe not appoints!

00:06:38: If get a mansion then rent the car parking spot And in this part of town it's anywhere from forty to seventy thousand yen per month.

00:06:47: Is car park rental.

00:06:49: Also management fees.

00:06:50: They're from forty-to sixty thousand for the homeowners association HOA fees.

00:06:56: Different countries have different names Whereas with a house, you're responsible for that yourself.

00:07:02: So again there are pros and cons for each of those.

00:07:11: so A new property is Easier to start With.

00:07:18: I use property.

00:07:19: You can get a really good deal if you know what your doing but most people don't.

00:07:28: And by knew i mean also not just like a brand-new House But also what's very, very common recently is renovated mansions.

00:07:39: The Reform Book Game Okay?

00:07:41: A renovation company will buy an apartment in Tokyo they'll renovate it and then resell It.

00:07:47: I like those.

00:07:47: i think They are fantastic.

00:07:49: a brand new mansion has a large premium on it similar to a house Has a bit of a premium but the problem with used Is its.

00:07:58: although it feels a bit cheaper renovation costs now Are going through the roof.

00:08:03: So if you want to do the renovation yourself, it can be quite costly and a lot of people again they think know what their doing.

00:08:10: I think who giggled?

00:08:12: Was that Blanca actually giggiled at her back?

00:08:14: maybe when i mentioned that?

00:08:16: so she'll be speaking later today.

00:08:20: She does renovations with our ArcReform right over there And dealing with clients who wants to do ideal renovation is actually challenging.

00:08:33: People trying to do their own renovation can be very, very challenging.

00:08:36: Whereas a brand new property comes with warranty it comes the latest designs, latest finishes, latest fixtures and latest insulation.

00:08:45: So personally both of those houses that I've bought have been new properties.

00:08:50: Now this one in Chiba is going through a renovation process And we had for or will be here in August haven't even started the renovations.

00:08:59: That's being hours of discussion Whereas if it was a renovated place already, I could go straight in.

00:09:04: Anyhow... So yeah each one comes with trade-offs and you need to figure out where you are on that spectrum of what you prefer.

00:09:16: so there is an important question to ask before you buys What Is The Exit Strategy?

00:09:22: Who will want the property after i leave?

00:09:26: for most properties That I deal With we're In Central Tokyo And There's A Lot Of Desire For Properties Here.

00:09:34: However, when people try to get super budget properties usually there's something wrong with it.

00:09:41: Okay?

00:09:41: It may be no sunlight.

00:09:44: its like the cheapest property in tucked away on back corner or first floor which really dark.

00:09:49: There is a reason that its cheap right.

00:09:52: Or maybe living room is tiny you know.

00:09:54: Maybe theres not dining room just one little sort of space No-one Really wants after you could very unique for your needs.

00:10:04: Or if you build, foreigners often want two toilets in a house.

00:10:14: I do tours of some properties five hundred million yen seven eight hundred million and it's not until we get about to six or seven hundred million that maybe four million US.

00:10:27: then i'll see second toilet.

00:10:32: Most houses will have two toilets, but for a second toilet in a mansion it's like five hundred million yen plus is where we start to see which is unthinkable.

00:10:41: In Australia and I think the US But i had some people that want build their dream home They go We want two bathrooms And they'll spend a fortune To put a third A second bathroom Up as an en suite in master bedroom upstairs.

00:10:56: When you wanna resell That The value isn't there No one gonna price It in same way.

00:11:02: If you want to have a big spa bath or some other unique thing, just soundproof room.

00:11:08: Some people like to play instruments and they pay fortune for making the Yamaha soundproof rooms.

00:11:14: again.

00:11:14: there's no value in that in the resale.

00:11:16: so be careful how much you wanna spend or invest in a property because that money may not come back later on.

00:11:25: And similarly if something too quirky about it makes such good deal You think this is so cheap because it's the cheapest in area.

00:11:33: It's going to be hard to move, hard to resell and just-.

00:11:42: This is especially the case In Tokyo.

00:11:43: its not a huge issue.

00:11:44: there are big demand in Tokyo but when you're a bit further out into other prefectures it can be more challenging When we have um...this particular setup.

00:11:56: Another example if your go like Ibaraki And spend one hundred million yen on building your dream home It's gonna be really hard to move that in the future.

00:12:06: Someone doesn't want to spend a million dollars to live in Ibaraki, right?

00:12:12: So you also need to think To a degree what the exit is going to be.

00:12:18: um i just had a couple recently who they had purchased a house In uh in Setagaya actually not far from my house.

00:12:29: I actually rode my bicycle The first time to check it out.

00:12:32: Uh...I got a call From them and They had just bought it.

00:12:36: It was a brand new house, they'd brought about year earlier and then when I walked into the finished product The husband who's like twice my height twice my width is like i don't fit in this House?

00:12:47: it Was A Is a three bedroom house.

00:12:51: the LDK was think About twelve Jor twelve tatami for that living dining kitchen And each Bedroom was about four-and-a-half Jor insides Which he's enough For Like.

00:13:02: That's Basically size of a double bed and His wife had shown him the plans and it's got J, you know?

00:13:12: Four point five J. Twelve J. what on earth does that even mean?

00:13:15: right to someone is okay yeah It's fine And they actually took him to see a model house.

00:13:20: The same developer was an open-house group which uh That's enough said I Took them to say a model House and then like he's like oh Okay Yeah This Is Fine this is great.

00:13:30: What He Didn't Realize Was They Were Just Showing Him The Color Selection.

00:13:33: That Was A House Done In The Same Color Same Theme.

00:13:37: It wasn't a reflection of the actual size or property.

00:13:39: So during their construction, because they bought it off-the-plan he's looking at it going outside and I don't think this is the right size.

00:13:47: Anyhow in the end once you went in there like no This is not working.

00:13:50: so they never even moved him.

00:13:52: They said we want to sell it We need something bigger?

00:13:55: So we just finished that i think was on March thirty.

00:13:57: first we sold up for them.

00:13:59: it Was brand new.

00:14:00: they brought it in August of i Think august last year and we sold it in March.

00:14:08: And yeah, so they never lived in that.

00:14:10: fortunately the market has sort of moved slightly and they were able to close at a pretty much break-even cost after their purchase costs and then say there selling fees They broke even up or down about one hundred thousand yen After paying off the loan.

00:14:24: So was fortunate that I didn't actually cost them anything.

00:14:27: but That's One Of The Things You Need To Understand.

00:14:32: So a lot of times I like people to go out and have look at properties, understand clearly what is the jaw.

00:14:39: How much size actually matters?

00:14:41: In my experience with three little kids, an LDK you want it to be... Sixteen jaw is a bit small, eighteen jaw and above, eighteen tatami in size And above is very good.

00:14:53: so this is sleeping there as well.

00:15:02: Sorry about that.

00:15:07: And living rooms The master bedroom, you want about seven jaw and up in size.

00:15:14: There's not a lot of ten or twelve-jaw master bedrooms that you find.

00:15:19: Six is common but seven and above like seven to nine.

00:15:22: I think it quite nice.

00:15:23: You can fit a queen sized bed or king sized bed And maybe some dresses on the side.

00:15:28: The closets are now included In living room space calculation.

00:15:33: So if its says six jaw there's closets in diagram as well.

00:15:39: the closets are not included in this space.

00:15:41: It's just really their living room space, they're a living space.

00:15:44: The second third or fourth bedrooms can be four and half jaw to six-jaw insides.

00:15:50: That is I think acceptable but you want master bedroom to be little bit larger for couple assuming that your family space.

00:15:58: And then the forth bedroom even four jaw maybe three and a half as like study office and occasional guestroom.

00:16:06: So thats my recommendations.

00:16:08: When you look on the floor plans and see what those numbers are, understand sort of what they mean but definitely go out and look at properties And once I think about five properties You can have a good idea What the floor plan actually says?

00:16:24: Reflects in real life when we get to that you're able to really filter properties from the floorplan very quickly.

00:16:33: For families living room is more important than bedrooms.

00:16:39: someone who wants seven or eight-jaw bedrooms in each room to be that size, you're not going get it.

00:16:47: Try getting a master bedroom and it's okay for smaller bedrooms but small living rooms are the deal breaker of many people.

00:16:56: It is all right if we have small bedrooms with a small living room because most people end up having larger living space.

00:17:08: but the reverse is not acceptable.

00:17:10: Big bedrooms and then just a small living room space ends up, no working.

00:17:23: So in Japan real estate age size budget equal... No that's wrong completely.

00:17:31: Age, Size & Location Equal Your Budget.

00:17:34: That's very firm formula.

00:17:37: There are some slight changes But I'll repeat that In Japan Real Estate.

00:17:41: The age, size and location equal your budget.

00:17:46: You can have a brand new property and A really, really big size in the center of Tokyo but your budget is going to be through The roof.

00:17:56: And often the budget Is one item that is kind Of fixed.

00:18:01: you don't Have much wiggle room.

00:18:03: people Don't have an infinite budget.

00:18:05: you Can have bigger houses?

00:18:06: You want fantastic.

00:18:08: you can choose a location But unfortunately the budget has very Very little flexibility To go beyond a certain amount.

00:18:15: So that means if you want to be closer to the center of town a great location and You want?

00:18:21: A big space.

00:18:22: You're gonna need to have an older building.

00:18:27: I just was showing a client a property in Daikanyama a few weeks ago And it's overlooking The new Christian Dior Building which they are just really lovely like one or two stories sort of building with a bamboo facade Wonderful Japanese garden, I think They Just opened It up Like Two Or Three Weeks ago And it's overlooking that.

00:18:48: That was a three-bedroom, I think seventy five square meter property.

00:18:53: It was one hundred and forty million yen which usually for that size in Daikanyama is about Three hundred to four hundred million yen.

00:19:01: The reason it was half the price because its a nineteen seventy eight building Its before earthquake Regulation changes Which were in nineteen eighty one.

00:19:11: So yeah great location Great size but quite old.

00:19:17: And as you start viewing properties, this is very much a personal decision.

00:19:20: I don't have an exact answer what the right balance of that equation for your or yours.

00:19:28: it's very personal.

00:19:29: but when we start looking and think okay am i willing to go further out?

00:19:34: For little bit more space.

00:19:36: How far route are going across the river Tamagawa and Kanagawa The one across the border on Saitama?

00:19:43: Do you want to be five minutes from the station or fifteen minutes walk?

00:19:47: For me, I have that minimum requirement.

00:19:51: I've got three kids and a minimum requirement of size but i'm in town so commuting every day is quite close.

00:19:59: Work-from-home situation has changed.

00:20:01: for many people They can only go into office twice per month So they commute into Tokyo because He only has to come twice a month to Tokyo.

00:20:16: Who's completely fine doing that, being the proximity is no longer important.

00:20:21: There are some fine details at Mato so sunlight Is a big one If it's a southeast-facing corner unit.

00:20:29: if It's an apartment building a mansion The floor makes a bit of an impact.

00:20:34: So yeah difference between the fifth floor and the fifteenth floor is significantly different too.

00:20:40: And then land shape with a house, if it's flagpole lot.

00:20:45: I'll make all these slides available later on so you don't need to worry about taking photos and just focus the presentation.

00:20:54: that completely fine.

00:20:56: But often when there is a flat pole lot at back then this is also discounted as well.

00:21:07: Some things we look out for.

00:21:11: So i've written tagline here.

00:21:14: A cheap property isn't always a bargain.

00:21:17: Sometimes it's just a problem with the discounts.

00:21:22: The key ones are leased land, no rebuild allowed or built outside of regulation.

00:21:33: Leased land.

00:21:34: in Japan we have leasehold and free hold.

00:21:37: so if its a leasehold property that means you do not own the land.

00:21:41: You pay monthly rent to the land owner And there could be twenty-five or thirty year lease term.

00:21:48: Some of those leases allow you to renew after that period and you have to pay renewal fee similar to a regular rental agreement.

00:21:56: However, some of them just say no it's terminated and give back the property.

00:22:01: You don't own it And thats all priced accordingly.

00:22:05: but often we find lease hold is maybe twenty five percent cheaper in value like at least hold right about twenty-five percent cheaper than freehold rights.

00:22:15: The reason its cheaper.

00:22:17: A lot of banks won't finance it, or if they do decide to finance.

00:22:23: They'll only finance the remaining term of the leasehold.

00:22:27: So there's eighteen years left on a thirty-year lease.

00:22:30: hold agreement that said well we will give you a loan for but only eighteen years not thirty five years.

00:22:36: so mortgage repayment could be really high.

00:22:38: um...so often don't deal with that.

00:22:41: some places need permission from their land owner.

00:22:44: when you do a title transfer all they need to agree and there are some contracts where it's a ten percent fee.

00:22:50: Whatever you sell that for, You have to pay them a ten-percent.

00:22:53: uh... fee to change the name which twenty thirty years ago would've been a few hundred thousand yen now its'a few million yen of that same property but is written into contract.

00:23:06: he can't really argue with The no rebuild allowed.

00:23:14: I talked about flagpole lot.

00:23:16: I talked about flagpole lots.

00:23:20: There are some lots built in the sixties and early seventies where it's two houses or one of two houses at the back of a property, And there is an narrow pathway to get into that lot.

00:23:31: If that pathway is less than two meters wide due to sort of emergency evacuation changes and rules You're not allowed to build on a property That has less then two metres of access through the front road Okay?

00:23:43: It's called Injappanese Saikenshiku Fuka Sometimes some Akiya properties, we've got the Akiahub guys talking later.

00:23:50: Some properties are like that.

00:23:53: if it's a more modern property or brand new property you're not going to have an issue.

00:23:56: obviously because they rebuilt but one of those older ones.

00:24:01: You cannot get permits to rebuild and new property on them.

00:24:05: so If it burns down for example collapses whatever happens you can't rebuild.

00:24:11: It is going be vacant lot of land And thats all.

00:24:15: You can renovate it if you like, so there is some value in that.

00:24:19: You can rent out if your like because then you get rental income and the cash flow seems really good Because we have little one room.

00:24:27: tenants here And cost to purchase was very cheap.

00:24:30: Asset tax also very cheap.

00:24:33: So does have pros & cons but won't get a bank finance for either.

00:24:36: So generally avoid those.

00:24:40: The first two are clear least land no rebuild allowed.

00:24:46: The third one though is non-regulation structure, and by that I mean it's built beyond the permitted amount on a lot of land.

00:24:55: Often when you look at building flyers It will say there's ratio.

00:25:03: maybe fifty percent slash one hundred percent or sixty percent slash One hundred and fifty percent okay?

00:25:10: That's what they can pay it to in your security too.

00:25:12: They talk about the building footprints that can take up as a portion of the land size, or total floor area.

00:25:23: So if maximum you could build on this lot is one hundred square meters and you've built one hundred twenty-square meter property right?

00:25:30: That's build outside regulation in future to resell it.

00:25:35: its not going be financeable because bank won't finance for Brand-new houses.

00:25:41: don't have this issue, but some older houses are built beyond this regulation.

00:25:46: And how they say that in the paperwork is if you rebuild this house she cannot build the same size okay?

00:25:53: That's how it's worded and written...and you can fall in love with it because it feels really cheap online right?

00:25:59: You look at it disproportionately cheap.

00:26:01: If you see something on line that is disproportionately cheap for the area.

00:26:05: what you should do is look Is It Least Land?

00:26:09: No Rebuild Aloud or is it non-regulation structure?

00:26:14: They're the key ones.

00:26:15: And if they are, I say just generally avoid them.

00:26:24: Okay so buying process both quite straightforward a bit rush rush casual and then rush rush rush and then sort of calm again... Then all of sudden you had meeting with stamping more hunkers more stamps and then all of a sudden get bag thank in agent leaves And you realize I just bought a house.

00:26:54: It's very, very anticlimactic because there is so much admin and so much paperwork to go throughout the process.

00:27:01: So it's important really understand this sequence Instead.

00:27:05: number two i've written.

00:27:06: You start with pre-approval Okay?

00:27:08: You make an offer.

00:27:09: when your view of property You sign the contract then pay the deposit.

00:27:17: That Is The Rush-Rush-Rosh Process.

00:27:20: Once that contract has signed Then you have paid the deposit.

00:27:23: You're safe, because everything is locked in.

00:27:26: Then it's just a bunch of administrative work.

00:27:29: you need to send the contract to the bank They need to give a formal approval to you and then you go sign the bank contract And then you agree on this settlement date.

00:27:37: He already agreed when he signed an original contract that on Settlement Day you all come through our office.

00:27:43: We're sitting inside and the judicial scrivener checks your documents.

00:27:46: Again, you don't make any decisions at this stage Just stamping what?

00:27:49: The agents tell you to stamp with the bank tells you to stop and the judicial scrivener will check the documents, say yes everything is in order.

00:27:57: He literally calls a bank and says yep!

00:28:00: Everything's in order.

00:28:01: The banks are fantastic.

00:28:02: They'll transfer their hundred million yen to your bank account And you know he'll be sitting there.

00:28:07: just take his desk going.

00:28:08: oh I have one hundred million Yen Just came in.

00:28:11: Oh it went out.

00:28:13: And the seller also sits here with this desk going.

00:28:16: Yep One Hundred Million Yen just came In And the scriven goes ok You've got money?

00:28:21: Fantastic He literally takes all the documentation and goes to the Ministry of Affairs, too do their title transfer.

00:28:27: That's a process.

00:28:29: All you have to do as a buyer is decide your budget Decide on the property The agent and the bank will... And the scrivener will do ALL the other work for you.

00:28:43: You just need to have your hunker and stamp away If you're non-resident.

00:28:47: um..you don't need a hunkor.

00:28:49: You need get a notarized ID certificate from a nori republic in your home country.

00:28:55: But that's it.

00:28:55: That's in place of the humcos stamp that we use in Japan, but everything else.

00:28:59: The local admin support in japan the agent.

00:29:03: you have to buy an agent.

00:29:04: You had the seller agent?

00:29:06: You Have the bank you have the banks governor and you have Your buyer Scrivener.

00:29:11: Okay So there are four or five different professional entities all working together To make sure you stamp and sign the right documents.

00:29:18: That is It!

00:29:21: thoughts about it, but just understand there's a process lots of stamping.

00:29:26: But you'll be guided through it.

00:29:27: nothing to worry about.

00:29:28: Just decide on the budget and The house that you need.

00:29:36: Fantastic.

00:29:38: So um That's it for my presentation.

00:29:42: if You are looking For A personal home in Tokyo If You Need A Home Loan I'm Also A Homeland Advisor.

00:29:48: i've Got To Talk Later Today.

00:29:50: Think It Said Is It One Forty-Five PM in the one thing again, In The Breakout Room just next door talking about financing and home loans.

00:29:59: I may certified Home Loan Advisor.

00:30:00: so that's also what to help a lot with.

00:30:04: Please do come out and talk to me!

00:30:06: i have a QR code there.

00:30:08: That goes my link tree.

00:30:09: it has.

00:30:10: My calendar is closed right now because we've been So busy but all of my socials are There.

00:30:14: if you want to reach out your email Just grab me.

00:30:17: I can give You my business card or if It had the chat.

00:30:19: But thank you so much for Your time.

00:30:21: Any questions?

00:30:23: Yes, we made the mic in the factory.

00:30:27: Exactly!

00:30:27: Thirty minutes.

00:30:28: how's that?

00:30:29: I did as if... That was beautiful

00:30:31: We got.

00:30:31: yeah okay i'll try to run the mic

00:30:33: To you.

00:30:34: just give

00:30:34: me a bit of time because this room is a big heavy up-the-axis

00:30:39: And with maybe something about this.

00:30:41: uh constant Yeah.

00:30:44: and there.

00:30:45: sorry The screen keeps flickering down.

00:30:46: I think we've got too many.

00:30:48: I know what's going on.

00:30:49: I'm playing Matt at the back.

00:30:54: Thank you for your presentation, I thought it was very insightful.

00:31:22: I've mentioned with the no rebuild allowed properties.

00:31:25: If there's less than a two meter wide pathway, so one point five meters or one point eight meters is The common sort of size that they used to do in their sixties and seventies.

00:31:37: You can maybe buy a portion Of your neighbor's lot like you know other fifty centimeters To make it two meters wide.

00:31:45: That's definitely possible.

00:31:47: But the chance of that happening i think Is slim because the person that lives there, That could be their house.

00:31:55: It's literally on that boundary right and If they do give it to you what's their benefit?

00:32:00: They're gonna have a new construction in the back of Their place And I mentioned before The building rules about how much size You can put on a lot and that's you know.

00:32:13: if the percent is fifty one hundred percent you Can build one hundred per cent floor space based on the size of your land.

00:32:21: If you've just given eight square meters to you, my house could be now eight square metres built above over the regulation and also what's in it for them?

00:32:32: You need really have to pay them a lot which may not be worth the difference... ...for the benefit of acquiring that cheap land.

00:32:42: So yes technically its possible.

00:32:45: Generally whats more common is these are houses that were built like in the sixties and seventies.

00:32:50: People will just hold the property in their back and wait for an old family there, because they've had it since the sixties.

00:32:59: Wait them to pass away... The kids are not going to want that property!

00:33:03: That land would come up on sale then buy it and redo a whole lot but its more of a developer or investor strategy-not really individual strategy.

00:33:27: And I have some comments who are actually interested in biocondominus here, Japan.

00:33:32: But they're wondering if the monthly fee that they have to pay for the mansion is then okay enough.

00:33:38: or the Daikiboshu's?

00:33:39: Yeah

00:33:41: very good question yeah daikiboshuzen.

00:33:44: so um... That means like a large building maintenance Or large-scale building maintenance.

00:33:49: So sometimes you see a condo and mansion will have scaffolding put up all around it and some covers, they clean it.

00:33:56: then the scaffolding comes off.

00:33:59: It looks new – all windows are either replaced or they're waterproofed, corridors are cleaned inside… They've had a major overhaul.

00:34:07: that happens about every fifteen years when you pay your monthly management fee.

00:34:18: for There's a management company, there is like an old man that sort of hangs out in the lobby looking at any extra guests you have.

00:34:26: You mean Puckadummet or something like that?

00:34:29: So he pay him... Have I seen any women...?

00:34:34: No!

00:34:35: The women are the concierge ones from the fancy buildings.

00:34:38: but it was always all bloke who looked at me and said yeah, you know this guy.

00:34:44: Anyway so yes they're paying for his livelihood.

00:34:49: But also, you pay separately to that the sinking fund monthly.

00:34:55: So when I said before property management fees or HOA fees are about forty-to-sixty thousand yen maybe ten-to twenty thousand of that is a management fee and another ten- to twenty thousand yen is building maintenance or repair fund fee.

00:35:10: And then they use this every... To do regular pipe cleaning in pipe maintenance.

00:35:13: Then overall building maintenance.

00:35:16: Lenny's question was If, like when you buy a building is the reserve fund that they've accumulated for the past decade enough to pay for this big renovation that they're going to do.

00:35:29: And before you buy property then it's definitely part of their due diligence that you do especially with I mentioned some old vintage mansions that they refer them The pre-Eighty One Mansions.

00:35:40: Do They Have Enough Money To Maintain Themselves?

00:35:42: So Before You Buy It You Get A Building Management Report And it says, this is how much money the building actually has right now.

00:35:51: There's also a long-term repair plan and I'll say in next thirty to fifty years... It's basically an Excel sheet that says every year from year twenty-twenty, twenty-one etc.

00:36:04: through to twenty seventy what their expected repairs are going to be What budget allocation or expected cost they're going for.

00:36:13: And then it has a line chart saying, based on the current funding this is where our budget will be for next thirty to fifty years.

00:36:25: Sometimes that comes up with revision.

00:36:27: more so now because renovation and maintenance costs are increasing.

00:36:31: they say look with forecast increase.

00:36:34: you see in the chart saying as is pricing we'll show out budget accumulated budgets.

00:36:40: go like this again there's some dips when you do repairs But when it comes to the big dye keyboard shoes in repair, they're like we can't afford to do that.

00:36:50: So let's have a management agreement or the owner committee Agreement.

00:36:54: We can increase it by three thousand yen.

00:36:56: There is an option A increased by three-thousand yen Option B increased up by seven thousand yen.

00:37:02: Right and well managed property will show all of them right.

00:37:08: so thats Part of the due diligence that you do before.

00:37:11: Yes, so it's definitely an important thing especially with older properties.

00:37:15: But You need to like but if you definitely check it and are entitled to check it before you make The purchase.

00:37:26: Yes running into the back and while I do that um, you know i mentioned i bought a property in jiga recently.

00:37:33: It didn't have any money right?

00:37:36: So Just before I was going to buy one two years ago in the same building, and there were like oh this is really cheap.

00:37:43: And look they wanted almost two million yen per tenant.

00:37:46: There's a hundred plus tenets here.

00:37:48: Two million yen for tenants.

00:37:49: do full building maintenance.

00:37:51: It has forty-years old never been maintained.

00:37:53: Some of that concrete was cracking.

00:37:54: all needed to be done.

00:37:56: Wow!

00:37:56: That's you know almost thirty percent purchase price.

00:37:59: So i left it.

00:38:01: Then another one came up just after it had being done.

00:38:04: The renovations are complete.

00:38:07: And I went and said, has that been paid?

00:38:08: Yeah he's paid it.

00:38:10: Oh okay fantastic!

00:38:10: That is a great deal.

00:38:11: So there are situations where the building does not have enough money.

00:38:16: They ask everyone look we need to pay for some more money We need to collect bit more money from you.

00:38:22: Or they're asking buildings let us say their significant elevator maintenance unaccounted for They'll actually borrow from an Oryx or some kind of financing company and there's a separate fee that all the owners have to pay, to pay off that additional loan.

00:38:39: So there are mechanisms in place.

00:38:41: but yeah you can definitely see all of that before making the purchase.

00:38:45: Okay thank you for the presentation today class.

00:38:48: so my questions around the lot size and shape.

00:38:53: Hi hows it going?

00:38:56: The first one is you mentioned like L shaped lots not being ideal.

00:39:00: And so, are there any better plot shapes?

00:39:02: Is it just like traditional squares or like rectangle.

00:39:04: Like what's kind of an ideal pot shape?

00:39:06: and then the other one is related to the percentage off-the-plot shape covering The land area building.

00:39:12: and how does that get changed as possible To apply to increase start or change that all?

00:39:17: yeah Just some more details about that will be great

00:39:19: All right.

00:39:20: So in terms a lot shape if It's like for example with like a square lots or corner lot is very usable.

00:39:28: There's nothing awkward.

00:39:28: So if he says a hundred square meters and it's square, you can really utilize most of that space.

00:39:34: If you bring the house forward there is room for garden area That equal to like The amount of space we have here.

00:39:41: It has a triangle lot And this little wedge in the corner.

00:39:45: Although its size is twenty square metres Its twenty square meters are not really Functional areas.

00:39:51: so thats kind what I mean.

00:39:54: The properties the flagpole lots which have like a long driveway in the house at the back.

00:39:58: they are a bit cheaper because That is not.

00:40:03: you can't really build on that Driveway space as such.

00:40:06: so though it says.

00:40:07: It's a hundred square meter lot.

00:40:09: to usable Space at the Back is only maybe Only eighty Square meters.

00:40:13: You Can technically Build according To, the ratio Based On A Hundred Square Meter Lot Because it Is a Hundred Square Meters?

00:40:20: My my family home is a bit like that, but for me I actually wanted to because i've got three kids.

00:40:28: we have five bicycles.

00:40:30: We are five bicycles two kickboards and a pogo stick.

00:40:35: Now if we just had a regular house in Setagaya with one One car park you have to like scuttle through it's of the car To get to the front door.

00:40:43: There's no room.

00:40:44: four five Bicycles on their two kickboard than a Pogo stick.

00:40:49: So for me When I bought a place, I wanted something like that.

00:40:52: One.

00:40:53: it's generally cheaper as well because its the real lot.

00:40:56: so there is more value and you have little bit of privacy.

00:40:59: My Amazon deliveries can be just left at front door And people will go past all those like gladiator pit to get in front door.

00:41:08: I got three kids trust me or chaos.

00:41:11: So yeah there are pros & cons with this.

00:41:15: The value generally is just a front-facing, lots of street access where it's good.

00:41:20: Now in terms of the Kemperiditsu and Yosekiditsu... ...the zoning that you're talking about In general You can't change that.

00:41:27: It's like this whole area Is a mid density residential area.

00:41:32: So if I go here And every place has two story houses Then its'a two storey zoned area.

00:41:37: There could be a height restriction But generally the building footprint Can only be fifty or sixty percent Of land size, or usually forty to fifty percent of the landsize and total floor area can be only upto a hundred per cent.

00:41:57: You have buildings like this across the road.

00:41:59: these are in thousands because it's more than ten times.

00:42:07: Alright,

00:42:08: one last question folks and then you can

00:42:10: grab a meal in the back room

00:42:13: or

00:42:14: at the Q&A

00:42:14: session.

00:42:17: In case of mansions does land always belong to owners collectively?

00:42:27: So let's say down on the road.

00:42:30: I mean a new aspect is the concept of condominium versus co-op And the difference between condominiums the owners of individual units, right?

00:42:41: Whereas Co-op is owned by somebody else.

00:42:44: So do you ever see a leasehold situation in case of a mansion?

00:42:52: Yes so there are some occasions where it's a lease hold on the mansion and we think that often what happens if its local temple or shrine that still owns this land but they still own it.

00:43:09: But you're pretty safe because they aren't going to kick you out or have, like... They are not gonna dispute the renewal in general.

00:43:18: so the temple-owned land is.

00:43:19: I feel generally that's okay if its a leaseland?

00:43:22: Yeah there some situations with leaseholds and in general i avoid them anyway The most commonly just free hold.

00:43:30: So when we had mention Howard says let say this thousand squim say it's a thousand square meters of property, and you have the penthouse.

00:43:44: You've got one hundred fifty square meter apartment in that one-thousand square meter total building.

00:43:48: so you own fifteen percent off the land its owned there.

00:43:55: they generally go by what is your personal size?

00:44:03: And thats ratio.

00:44:04: So if you have a hundred and fifty square meter property, And someone else next door has a seventy five square meter.

00:44:09: Property they'll own They'll have half the ownership as what?

00:44:12: You you have and that's pretty straightforward and That's also in the documents when you get to the sales flyer and you see The price.

00:44:21: it will say land ownership and we'll say like your own two thousand one hundred and fifteen out of You know a hundred into Thousand units.

00:44:31: that's how I break it down is really detailed All right.

00:44:36: Thank you very much, Emil.

00:44:41: Excellent thank you so much for your time.

00:44:43: I will be hanging around a loiter lot in the foyer and on the terrace And we do have.

00:44:49: this is all about buying at home an internet of homes.

00:44:52: Do you have to break out room?

00:44:54: Is it one fifteen?

00:44:55: there's a schedule on their LCD displays here anyway or on the website summit that real estate.

00:44:59: JP.

00:45:01: I Have a breakout room that was going to talk about home loans and financing That's focused more on residents, not non-residents.

00:45:07: We have a Mark Drapkin from Yenlearns I think tomorrow.

00:45:10: he is speaking about Nonresident Financing and Alicia as well, Nonresident financing.

00:45:15: so we had different groups to talk too about that.

00:45:18: Thank you very much everyone.