00:00:00: To me, the most charming places of Japan are the rural areas.

00:00:04: It's rich in nature and there is a lot of local people that appreciate tourists who come around because they rarely visit it.

00:00:17: Some of them do!

00:00:18: They're extremely stubborn in their fear of foreigners including local municipalities and some locals.

00:00:24: There have been cities or townships where they've done very good jobs but A lot of them that seem a lot more content with dying out rather than accept the scary form.

00:00:49: Either folks and welcome or welcome back to Nippon Trading International's Japan Real Estate Podcast, I'm your host.

00:00:55: Ziv Nakajima again in this podcast is brought you among others by Emil Gorgies of realestate.jp.

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

00:01:09: So, Emile is an Australian.

00:01:10: He's been living here in Japan for over two decades now and 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.

00:01:25: so he got dedicated loan officers from many Japanese megabanks.

00:01:29: 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.

00:01:36: 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.

00:01:50: Most importantly he's incredibly generous With his time and advice which Is more than happy to provide At no cost or commitment to anyone asking.

00:01:58: 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

00:02:15: right, so for today's episode.

00:02:17: This is an interview that I've given to a young guy from Toronto Canada.

00:02:21: He used to live in Japan when he was younger or even younger?

00:02:24: I should say it's pretty young as his and he's considering moving back here.

00:02:28: He's also considering starting up a real estate business here in the country And so you wanted to pick my brain about a whole bunch of stuff.

00:02:35: What are the hurdles for foreign buyers and property owners and more specifically For rentals and property management services?

00:02:43: What should you consider when starting your business here as a foreigner?

00:02:46: what are some of the misconceptions regarding real estate in Japan and why do people buy it.

00:02:52: What does Japan's declining and aging population mean for its property market?

00:02:56: what are the challenges in managing hospitality properties, in japan's rural areas.

00:03:02: And one of the challenges is holding property out there in the boonies in first place that people especially remote property owners tend to underestimate.

00:03:11: we also talk about many assumptions Japanese sellers and foreign buyers make and other assumptions that foreign buyers make about the market overall, that might be wrong.

00:03:23: Rent increases, tenant-oriented legislation here... And what this all means for landlords?

00:03:28: We break down the various buyer profiles we serve—the different kinds of homes these buyers prefer to purchase….

00:03:34: …and also talk a bit our own personal preference as buyers ourselves!

00:03:39: The issues come with older Japanese homes, structural inspections on how common or uncommon they are earthquakes and in particular the concern about another potential huge disaster like that twenty eleven tsunami.

00:03:53: What does remote management of holiday homes look like for non-resident property owners?

00:03:58: what complications do foreign buyers underestimate when they're purchasing here?

00:04:03: And finally we refibit about whether the locals in these rural areas appreciate tourists and visiting foreigners, how Japan's current government might be affecting this.

00:04:13: sentiments.

00:04:15: So really nice bird's eye view on the market here, but also a bit of a deep dive into a bunch of topics.

00:04:20: Oh and just to heads up because he is based in Canada which means we could only hold our conversation at evening my time when I happen be out with friends bar or restaurant.

00:04:30: i was dressed pretty casually.

00:04:32: so don't freak if you are watching this on your YouTube channel prim and proper in my office clothes, this was a bit more of me being myself visually.

00:04:42: And if you're curious about our YouTube channel by the way feel free to check it out and subscribe its youtube.com forward.

00:04:48: slash Japan real estate.

00:04:50: easy enough to find.

00:04:51: enjoy the conversation and

00:05:00: I'll see again on two points today, just regarding real estate in Japan as well property management.

00:05:08: So I watched a few of the presentation slides that you posted for out-of-summit which seem to have gone great and really happy about it.

00:05:17: Hopefully in the next time i'm in japan i'll be able to attend.

00:05:20: but just to boil down what you talked about seemed like...you wanted to sort of explain what its like for buyers or sellers?

00:05:27: For Japan in terms of different expectations this experience as well some negotiation styles for foreigners etc.

00:05:36: So

00:05:37: more buyers and agents, the sellers would normally not be in direct contact with the buyer?

00:05:43: Yeah

00:05:43: yeah.

00:05:45: so it seems important to have this sort of bridge between the foreigner and local Japanese agent on terms of setting up expectations for the buyer is communicating clearly you know... In a way that both sides can understand each other better right?

00:06:02: Yeah,

00:06:02: yeah.

00:06:03: So what do you think is some sort of how to say like the experience that's required for someone?

00:06:08: To be that bridge between The Asian and the buyer?

00:06:15: Well I mean the first thing would be I guess along language in culture experience.

00:06:20: right i'm not sure.

00:06:22: Is all your thinking?

00:06:23: do you see them move here and run there?

00:06:25: yeah for sure like language and culture.

00:06:27: maybe You know Having that on-site experience in Japan, let's say for ten years or fifteen years doing real estate etc.

00:06:35: because it is not something anyone can just go straight into right?

00:06:40: Yeah but I mean property management is a bit of the more specific sector within the real estate industry.

00:06:46: so if you are talking about property managements and... different.

00:06:52: It doesn't, well for one thing it doesn't require a license or licensed real estate company.

00:06:58: anyone could open their property management company and to sign the leases with the tenants.

00:07:03: you need to hire somebody who is authorized to sign contracts.

00:07:07: but aside from that its fairly...it's not more of an open market.

00:07:14: and also I think the foreigner angle is something that you'd want to lean into rather than have it working against, right?

00:07:25: So we wanna work in a business environment where the fact that you are foreign or catering for foreigners could actually be an advantage as opposed to disadvantage.

00:07:35: And um... It's not easy.

00:07:38: but its easier.

00:07:39: if the foreigners can buy property in Japan then it is for them to rent their place and so

00:07:44: forth.

00:07:45: Definitely niche there to serve.

00:07:49: But I think the main difficulty there is in convincing the landlords to rent to foreigners, right?

00:07:58: That's usually where... So there are some agents that don't want attached at all.

00:08:02: And they're some agents who try to specialize and that but still have run through a bunch of landlords before they land on one that will actually consider renting to foreigners.

00:08:11: so if you wanna get into it very much a needed niche.

00:08:17: Yeah, you

00:08:19: can totally see how that could be.

00:08:23: A lot of foreigners I think feel sometimes overwhelmed and intimidated by not only just the paperwork but also the language barrier comes with buying a property especially when using your property after buying the app property.

00:08:36: That's one of the questions that I'm gonna have later, but yeah just wanted to touch on real estate side One.

00:08:41: my first question is going be a lot people see Japanese real-estate economy as unusual or risky.

00:08:51: What do you think they sort of fundamentally misunderstand about Japanese market?

00:08:55: I Think

00:08:59: when people talk about it as risky They're leaning on paradigms without referring.

00:09:04: I don't want to say trends because it's not always true in Western countries as well, but there is this assumption that real estate always gains and value.

00:09:15: And then they kind of say like how was Japan?

00:09:17: That's not necessarily the case.

00:09:19: They say that property would depreciate which is only partly through.

00:09:23: The structure will depreciate But the structures appreciate all over the world.

00:09:26: thing in Japan Is that after twenty five years Of deflation land has lost a lot of value.

00:09:33: And that's changed about fifteen years ago, and now major cities are all gaining in value.

00:09:39: Some of the rural areas are getting in value.

00:09:41: but The balance there is a bit more tricky.

00:09:45: But I would argue that that's the case in many western countries as well.

00:09:48: it comes in cycles.

00:09:51: So people are assuming if they buy property They can't bank on capital growth.

00:09:59: then it's not a profitable endeavor, but the people who invest in Japan are not banking on capital.

00:10:06: I mean you buy in central Tokyo, central Osaka and Isekuo, bunch of places in Japan, Fukuoka.

00:10:11: then properties will gain value most likely if economy does well overall.

00:10:15: But People invest here mainly for cash flow.

00:10:18: they invest here For The hassle free nature of the tenants And property management company.

00:10:25: It is very well documented very legal oriented, legally recourse-oriented markets and you know paper trail to the moon in back.

00:10:36: There's no monkey business.

00:10:37: The tenants are docile.

00:10:38: The property management companies are usually quite professional.

00:10:41: The realtors are heavily licensed and monitored.

00:10:44: so people come here number one for ease of management and ease of purchase.

00:10:50: they don't need look over their shoulders.

00:10:53: make sure nobody is swindling them.

00:10:54: that almost never a thing in Japan.

00:10:57: They don't need to worry about what the tenants doing with a property.

00:11:00: There's no squatters or forced evictions, or ghettos and crime labs And that kind of stuff.

00:11:07: they deal within tenants in other countries.

00:11:11: The fact that properties are very affordable because those twenty-five years of deflation That actually makes the market easier to enter it also gives you diversity.

00:11:23: So for example when I moved to Japan I sold one property in Australia and bought about eight of them here for the same price.

00:11:30: So that allows you to spread your capital socioeconomically, geographically.

00:11:35: if he lose one tenant then you lost a portion of your income stream not be entire thing.

00:11:39: so there are other advantages than other reasons to invest here.

00:11:43: they're not as intuitive people who were used to investing overseas.

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00:13:58: today

00:13:59: You said uh...you wanted to spread across sort of portfolio for the properties And so my question about that would be, how do you strategically decide where to buy properties?

00:14:11: I understand Japan really values the ten minute walk between stations.

00:14:17: But for someone who let's say is interested in rural areas... What do you think is like the three big factors that should consider one buying property?

00:14:28: Well, I wouldn't go for rural areas unless they had a very specific strategy.

00:14:32: That would work in those various like Airbnb or some other tourist discrimination kind of property.

00:14:40: The main thing we look at when looking towards to invest into population trends right Japan being Japan.

00:14:46: rapidly aging population and a lot.

00:14:49: Sorry, I'll just move to another room so that i'm not bothering the people here.

00:14:53: Can you hear me still?

00:14:54: Perfect yeah So Japan being Japan The first thing we look at is population trends of a particular city.

00:15:14: right there are plenty Of cities that are gaining in population.

00:15:19: In A few and a handful of places it might be organic growth like People actually having more babies than people Are dying.

00:15:24: but in most other countries Most of the cities It's domestic migration growth.

00:15:29: So all of the major metropolitan centers and as is a smaller townships in villages For lack of a better word die out.

00:15:39: The people, younger generations are migrating into bigger metropolitan center.

00:15:43: so almost all big cities in Japan gaining population.

00:15:47: That will probably be another case for at least ten or twenty years And hopefully by then they'll do something about their populations.

00:15:56: Regardless if you're going to be invested, why did you mention Nagano rule area specifically?

00:16:01: Like what's the idea there.

00:16:02: Yeah So I was looking into you know vacation homes etc.

00:16:06: I've done many road trips through Japan and What i found To Be The Most Attractive About Japan Personally Is This Quiet Side Of Japan In The Mountains Where You're Sort of untouched by civilization, where you can get away from the busy city life.

00:16:22: And I do think that there's a lot of potential in there considering a lot foreigners or let's say tech workers live and reside in Tokyo sometimes at one time way from the city especially for people who come from rural areas just more nature-oriented places.

00:16:39: so yes

00:16:40: very true.

00:16:41: but So there's two sides to that coin.

00:16:45: One is if you're investing in a place it's already well known and attracting tourists or attracting domestic tourist, whether the case may be then properties are not going to beat cheap there which as a result means that they yields will be compressed as well.

00:16:58: And If You're Investing In A Real Rural Gem Diamond In The Rough Kind Of Location Which Is What I Think Your Envisioning There then you have to market not just your property, but the entire area because nobody is going there unless it looks like its worth a while.

00:17:16: So kind of becoming tourist promotion department for the entire town or prefecture and that's hard work.

00:17:25: For sure hundred percent!

00:17:27: That was very valuable.

00:17:28: thankyou so much.

00:17:30: So the next question that I have was, what's a strong popular belief about Japanese real estate or even property management?

00:17:37: That you strongly disagree with.

00:17:42: Popular belief...I guess it depends on who your asking.

00:17:48: if you're asking Japanese landlords then their assumption is that foreigners are trouble And as someone who's had and still has, our clients have both foreign and Japanese tenants.

00:18:02: I can definitely testify to the fact that there are a lot of profiles of Japanese tenants that are equally troublesome or worse in some cases.

00:18:16: The assumption that foreigners make on the other hand when they come an investment property here is similar to other countries where you raise the rent every time the lease expires.

00:18:29: Cost of living has been going up.

00:18:30: Salaries have not really been going out to any significant degree, which means that rents haven't been growing up.

00:18:36: so I can try to raise the rent but it tends just gonna move out and find a cheaper property.

00:18:41: if they do that What else?

00:18:50: Yeah people assume then is there an apartment or house right next to a train line or a railway station, that's an issue.

00:19:00: In our experience Japanese tenants barely spend time at home.

00:19:06: they come home... At least in the cities.

00:19:08: They come home late at night after long day of work and they care lot more about the convenience than any conception of noise That they might have ...they just use place for sleep to crash.

00:19:19: basically People are assuming Somewhere in the suburbs or the countryside is similar to other countries might be more attractive, whereas most people just want stay as close of the can to big cities.

00:19:35: They're looking for convenience and transportation than the extra floor space that you find on the suburbs.

00:19:42: That's a good thing for foreigners not such a great thing for your typical Japanese tenants.

00:19:48: I don't know.

00:19:49: this goes on.

00:19:53: I was quite surprised by what you said as well.

00:20:20: That doesn't happen here much at all, but the law is on their side.

00:20:25: So to avoid the potential for somebody thinking about that or doing that we would compensate them because The legislation here is very tenant oriented meaning that if they Would want to take it to court then?

00:20:38: They will have a legal leg to stand on.

00:20:41: But um that has not happened to us ever.

00:20:45: and having said that We do offer compensation every time if you wanted not renew the lease, but still Japanese tenants are very conflictive versus it's very rare that they would take you to court.

00:20:55: It's just that they have a legal right too if they choose them.

00:20:58: Yeah I believe he said six or ten months is like the typical amount that you'd give someone?

00:21:04: That's what cost him to move.

00:21:06: so there will be the nice thing...the fair thing.

00:21:10: Yeah, okay.

00:21:11: For the next question I understand that there's always different sizes such as investment purposes or second home purposes but what is like a typical profile of foreign buyers in Japanese real estate to be?

00:21:27: there's no such thing depends on what kind of real estate.

00:21:30: If you're talking about investment in the real estate, holiday homes if we are talking about a minpaku shortened state property or land for development is very different types of investors.

00:21:40: We've got everyone from younger people whose entire life savings is I don't know thirty forty fifty thousand bucks and they want to buy ski condo that can be used when they come here to ski during winter or they want to buy an old dilapidated Akiya somewhere in the countryside and grow vegetables, then we have people buying multi-million dollar central Kyoto or Tokyo homes.

00:22:07: They run the gamut.

00:22:08: so there's no one profile for real estate that can give you a profile for particular type of property but not really.

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00:24:22: and now back to the podcast.

00:24:25: So another question is do you see different sorts of motivation from people from different places such as North America, Europe Asia?

00:24:34: I asked this because a lot of times those in North America, they do see Japanese real estate as moral investments.

00:24:41: Because the distance that you have to take to visit Japan etc.

00:24:45: whereas people from Asia or Europe who might be closer to Japan seeing more at second home place?

00:24:54: No i wouldn't say so.

00:24:55: we've got both.

00:24:56: it's maybe more of an age group and professional background thing than if there is country things In Asia, we do get maybe more family offices which is not a huge thing in Western countries but it does.

00:25:13: It is I think an Asia and some parts of Europe whereas when were talking Australia Canada USA other parts are mostly individuals or couples But aside from that depends on their age professional leanings what they're looking for.

00:25:34: It also ebbs and flows with macroeconomic factors, right?

00:25:37: Like when we started which is back in twenty eleven.

00:25:40: That was right after global financial crisis And everybody was looking for attractive deals Investment because they know that.

00:25:49: you know When the crisis hits then opportunities abound.

00:25:52: Then everybody in the u.s.. For example were buying foreclosure properties In their backyard.

00:25:56: nobody wanted to go out of the country cuz They had so many good deals there.

00:26:03: the US market recovered over the years and they stopped getting those good deals.

00:26:07: And we started getting more and more us based investors.

00:26:12: these days probably due to Ukraine in post COVID dynamics, We have a lot more investors from Europe.

00:26:21: so it ebbs and flows or whatever what ever is happening in the world.

00:26:25: now again I'm getting get huge influx of people from their states looking there park Their money elsewhere because all kind of political stuff that happens themselves.

00:26:34: it comes and goes.

00:26:38: Very quick question about having a vacation home in Japan or selling, how important do you think this unique Japanese emotional experience is?

00:26:50: in renting out a vacation home.

00:26:53: Because most of the time people who visit Japan do it for specific reason, you know?

00:26:58: Nature is sort-of similar to a lot places on the East Coast or the US and Canada but they go into Japan through that cultural and emotional experience.

00:27:06: so... Do you think uh.. It's important to have this Japanese style vacation at home or Japanese style bed etc.

00:27:14: over a Western style vacation?

00:27:20: I see both, to be honest.

00:27:21: We see a lot of people who come here for the Japanese traditional architecture home experience but then they might furnish their place in very modern Western style whatever is comfortable for them.

00:27:35: and we do have other people though it's really hard to set up profile man.

00:27:41: there are all kinds of people buying from different reasons with different attitudes towards taste interior design.

00:27:49: We have a lot of people who just want the really convenient, comfortable condo unit in the city and then they'll obviously furnish it more modernly.

00:27:56: And we had people are looking for that.

00:27:58: there's everything.

00:28:00: Do you have personal preference or

00:28:02: me?

00:28:08: I Probably go for a modern build but with interior traditional design.

00:28:15: so not real old stuff But stuff that feels a bit more traditional.

00:28:20: But as far the property exterior goes, I've stayed in too many traditional Japanese houses that are freezing into winter with very noisy creaking windows and sliding doors that often break.

00:28:33: So i'm not a huge fan.

00:28:34: but my wife-in-partner Chikako on other hand is a huge fun of me.

00:28:38: then she loves to restore these old homes and keep them as original possible.

00:28:43: so even within our own home we run the gamut.

00:28:46: Let's

00:28:47: see, okay.

00:28:48: That's good to hear about your personal experience.

00:28:52: I remember in the presentation that you did for The Summit You said that inspection is not the norm.

00:28:57: Is that right?

00:28:59: For Japanese buyers Yeah We recommend it.

00:29:02: all of our clients if they're buying anything that's thirty years and older.

00:29:05: But with typical Japanese buyer It's a little bit more common than it used to be but still very much the rarity around rather than the norm.

00:29:14: See, I was quite surprised to hear about that considering all kinds of issues Japanese houses might have.

00:29:21: Well the main issue is they're not built last.

00:29:24: so anybody who's buying them at this age if their Japan is kind-of assuming within ten or twenty years will tear it down and build a new one.

00:29:33: And so when buyers approach you, talk to buyers.

00:29:37: Do you often see sort of this fear regarding earthquake or rather the mega-earthquake that is supposed to be coming soon?

00:29:44: Like do they feel hesitant?

00:29:45: Or do you see like a drop in interest for real estate?

00:29:52: No earthquakes come and go here.

00:29:54: A lot people talk about it But once they understand insurance covers most of those damages there are less concern.

00:30:00: It's obviously not a good thing if you're at the property when it happens but from a financial perspective insurance will cover most of, especially if its an older home.

00:30:09: In my experience with people I do talk to this fear of mega earthquake brewing.

00:30:16: they feel more and more hesitant about moving into Japan or even buying properties in japan.

00:30:21: are these

00:30:21: people that considered previously you mean?

00:30:26: okay

00:30:26: so yeah.

00:30:27: but then you know they're starting to see youtube's or news articles about this mega earthquake that's coming i mean after twenty eleven, seeing what happened.

00:30:35: it's quite traumatic for not just japanese people but everyone thinking about going to japan as well.

00:30:41: I myself know a few friends who visited Japan and were constantly afraid of it.

00:30:46: do you think there is way for Asians in japan?

00:30:53: Not calm down necessarily explain that it is relatively safe in Japan when it comes to bigger earthquakes, despite what we saw on Twenty Eleven.

00:31:08: I wouldn't say its super-safe but can always happen.

00:31:13: if i look at every country they've lived or visited there's something bad that might have happened with a high frequency right?

00:31:20: In the US you could get shot and Australia would be caught in bushfire.

00:31:25: I mean, every country has its own thing.

00:31:27: So yeah in Japan it's earthquakes but you know the Japanese people at least that i Know are very.

00:31:34: The shogunai mentality is like hey if it happens It happens.

00:31:37: we have our little earthquake kit and You know everyone's well trained starting from Very early in kindergarten elementary school.

00:31:43: they know exactly what to do And What kind of space to head out for?

00:31:47: And I don't know it's something That you just Get used living with an Israeli terrorist attacks or whatever.

00:31:55: Yeah, um when I do have friends who are worried about earthquakes.

00:31:58: I do reassure them that you know i've lived through twenty eleven and came out fine.

00:32:02: I lived in Chiba Prefecture Funabashi quite close to you know Fukushima but we all as kids been trained how deal with the earthquake situation...I remember my elementary school where they had this soft pillow behind a chair on top of your hand while there is an earthquake.

00:32:24: built to last, build to endure earthquakes even during twenty eleven.

00:32:29: you know Tokyo nothing fell really in.

00:32:32: all the buildings sway as it should and when I showed them... The

00:32:34: concrete structures definitely are yeah.

00:32:37: And the houses that were built in such a way they're not gonna cause a lot of damage to people passing on this street when they come breaking down.

00:32:44: but the wooden houses did not be able to last.

00:32:46: They've been built because less damage when they break down.

00:32:50: i think

00:32:51: Yeah I do.

00:32:53: that's sort of how i reassure my friends, like look this was a massive earthquake.

00:32:58: That happened at one point and you know A lot of things happen but still a lot of people were saved by the amazing technology or um The way we build buildings over in Japan.

00:33:09: So yeah, I just want to move on to the property management side now.

00:33:13: Just a first question is that it seems like property management's crucial when it comes to buying properties for foreigners in Japan?

00:33:21: Let's say reading documents paying the bills let's see if you're on tourist visa etc.

00:33:28: how crucial do you think It Is To Have Property Management Company For A Foreign Buyer Depending On Let's Say Their Visa Status Or cash flow, etc.

00:33:41: Well if you're not living here it's impossible to have a property without a property manager because your gonna get in trouble with the neighbours and municipality.

00:33:50: just the humidity of the mould are such huge issue here.

00:33:53: If we leave closed then nobody opens windows at least every month or other months.

00:33:58: The mold is going eat through entire interior.

00:34:01: if you have a garden or backyard, you have to religiously maintain it.

00:34:04: so avoid getting in trouble with your neighbors and the local municipality.

00:34:07: If we're up in snow country then you need take care of snow clearing on the roof So... ...if you are remote owner or remote landlord And definitely if you had tenants Then You have to have appropriate management company.

00:34:20: It's not an option Not to.

00:34:23: Yeah Do think people that say who is not on tourist visa Who were able open bank accounts could theoretically get away with not having a property management if they do visit every few months or so.

00:34:37: Yeah that's doable, I'd say every other month especially in the summer because that's when you really want to air the place out and that's where the garden grows beyond control as well.

00:34:47: So somewhere between late spring to the end of summer i think You definitely wanna make sure That your here at least once per month.

00:34:55: but If you can pull it off then yeah it is doable.

00:35:00: When we approach foreign buyers of Japanese properties, especially for those who've never lived in Japan.

00:35:06: I think it's really important that we set the expectation of lots to come post-purchase right?

00:35:12: What do you think are like some other factors that foreign buyer still underestimate heavily under estimate?

00:35:18: Do you say is maintenance part or?

00:35:24: Definitely if its a wooden house with the maintenance and Not just the maintenance in this sense of property management, but the actual maintenance or the structure.

00:35:32: The repairs and the wear-and-tear that comes with these places over time.

00:35:38: I think they underestimate how much Relationship within neighbors can make a break your experience when you come to stay at your property.

00:35:47: And my thing They underestimate the lack of infrastructure in smaller Japanese towns and villages than the lack Of English services.

00:35:55: then many places in Japan.

00:35:59: They underestimate what an uninsulated property might feel like in the winter especially.

00:36:05: Yeah,

00:36:07: bunch of stuff.

00:36:08: That's something that you personally experienced

00:36:13: In clients properties not on the ones I've lived.

00:36:16: and

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00:37:10: Yeah I think when it comes Buying properties for foreigners in Japan, they often see sort of the surface level what it's like.

00:37:18: Let's say Akiya videos.

00:37:19: It has been very popular over the past few years and a lot people start to dream about that.

00:37:25: And you know when they see those cheap prices especially relative to US or Canada They won't just immediately go into.

00:37:33: So this seems really important.

00:37:36: You know, we set the expectation.

00:37:37: We inform them and educate people on how to really navigate that process of buying a place And what to do with it after you do?

00:37:46: Personally from what I've seen It seems like there's not A lot Of videos on it So i think he'll be real nice To uh Be able to see more of That On YouTube etc.

00:37:55: But in large

00:37:56: part or What we Do yes when When we get new clients I mean, sometimes we get lucky and they already know but often it's a lot of really mature education before We actually go ahead and help them buy or manage anything.

00:38:13: And then some people just refuse to recognize the.

00:38:18: you Know The gravity over it?

00:38:20: Then we have to let him say that were not at best fit for them.

00:38:23: because

00:38:33: after they buy a property, do you realize how much of the hard work it is and decide to sell that?

00:38:38: And if so... Is difficult find buyers at this point.

00:38:44: Depends on what they bought

00:38:46: for sure.

00:38:49: The attractive

00:38:49: properties based our recommendations usually will be easy liquid and fairly easily get rid off.

00:38:56: but we have clients who are against best advice and our better judgment bought a, I think, nineteen sixties or early seventies properties surrounded by almost one square kilometer of forest land up the cliff.

00:39:15: Nobody wants to buy it from him.

00:39:16: he doesn't want to pay via landscape maintenance fees which are off course huge And now is getting in trouble with the municipality and neighbors.

00:39:26: He's blaming us even though we told them you know, he's thinking we're just getting him bad quotes and is being scammed when we were trying to explain things from the get-go that it's going be very expensive to maintain a property like that.

00:39:40: but people don't listen.

00:39:42: then they don't Listen.

00:39:42: What can I do?

00:39:44: Yeah i think it's definitely important to listen to an expert.

00:39:47: money buying a familiar area or even a country as a whole in Japan.

00:39:53: It's not the most easy country to get to know considering there's a lot of language barrier culture barrier And you know, even when you live in Japan personally as a pointer.

00:40:02: You saw very different experience from what local Japanese people might have and that's something difficult to overcome after decades of living.

00:40:11: That was my personal experience.

00:40:13: I mean Of course i was kid but To me it was Japanese.

00:40:18: When I moved here ,I made all these same mistakes.

00:40:20: Thats part of the reason we got into this business.

00:40:22: is to help people avoid those mistake.

00:40:24: One hundred percent and just a few last questions that I have.

00:40:30: Do successful short-term rental owners think more like investors or hosts if it's both

00:40:36: things.

00:40:36: Like business owners,

00:40:38: right?

00:40:39: I see okay Yes

00:40:40: What do you want to run?

00:40:41: the hospitality property your running in business takes attention.

00:40:45: It takes tweaking it takes being creative.

00:40:48: it takes working with experts who know what they're doing And its very hands on.

00:40:53: You could be the best guest, but that doesn't mean you'll be a successful business person.

00:40:57: Is it what you're trying to say?

00:40:59: That's one part of it!

00:41:00: The other is...you need to get ready for your mental bandwidth which will require you not set and forget.

00:41:06: You have to constantly have your finger on the pulse see what competition is doing maintain relationship with suppliers, neighbors or guests.

00:41:14: It's full-on job.

00:41:18: final question would be this is something that you know everyone's thinking about and I'm sure it's been covered in many different videos or areas on YouTube, anywhere online.

00:41:28: But what do you personally think of the shrinking population?

00:41:31: Because when a lot people see this population issue Japan has had they feel hesitant to invest in Japan considering there will more houses are emptying up right.

00:41:43: so

00:41:46: We touched on that in the beginning.

00:41:47: I personally don't invest in Akia as i might buy a house for personal use or For some creative business purpose but As an investment from the sense of placing a tenant in there and collecting the rent, they wouldn't invest In rural akias.

00:42:03: But again me personally Especially with you know The nature of Japanese real estate and how non-durable most most of the houses are, single-family homes at least.

00:42:15: I look ten to fifteen years into the future not beyond that and in the next ten or fifteen years i see villages and townships again going to be constantly conglomerating into bigger metropolitan centres.

00:42:29: And people moving closer and closer through the bigger stations than the big metro centres.

00:42:35: those places will invest for a couple decades Beyond.

00:42:41: that is over my favorite man.

00:42:43: Maybe we'll get a government who finally Recognizes the immigration as a thing or that you know, we should give women a bit more Freedom to choose their lifestyle in a career so that they're feeling more comfortable to raise a family.

00:42:55: but maybe That will happen.

00:42:58: Maybe it won't have and maybe we'll invest elsewhere for the next ten twenty years.

00:43:01: I'll focus on city centers.

00:43:03: Yeah You know I'm recent at beginning about.

00:43:16: To me, the most charming places of Japan are the rural areas.

00:43:21: It's rich in nature and there is a lot of local people that appreciate tourists who come around because they rarely visit

00:43:29: it.

00:43:33: Some of them do!

00:43:34: They're extremely stubborn in their fear of foreigners including local municipalities.

00:43:39: the government that they currently got in place is catering to that fear, right?

00:43:54: They keep stoking the fire and telling people how all these scary foreigners are out here to get them.

00:43:59: So I don't know man, the pendulum swings.

00:44:02: maybe it'll swing back with a guy Dean Wei one day or another but so far its touch-and-go.

00:44:09: some municipalities have better than others in regard But definitely not all of them In my opinion.

00:44:13: Yeah no i totally understand what you mean as someone who speaks Japanese Who grew up speaking Japanese like people do, the people that I meet at least to appreciate.

00:44:23: you know i respect culture and language.

00:44:25: That try my best to integrate rather than be like a nail that sticks out which of course Japan does not like...

00:44:38: If we get options sometimes our face is enough to make us stick out so nobody's going to stick around long enough to figure it if are trying to integrate or not right?

00:44:47: I mean, I respect the culture and customs.

00:44:50: And then try my best to be respectful.

00:44:51: but there are some people who just see a foreigner have all these preconceptions in mind already their prejudices.

00:44:59: so i'm not gonna argue with them or find ones that aren't like.

00:45:03: And last question, this is a personal opinion for you.

00:45:07: So it's not an objective question at all.

00:45:08: but what does sort of like dream house to envision in Japan?

00:45:12: if yeah let's say unlimited budget?

00:45:13: I think you got asked that one billion yen budget question.

00:45:17: But What the Dream House To You?

00:45:19: Not just for investment but also your personal enjoyment.

00:45:28: Some place with really big garden assuming that I have the money or time to maintain it.

00:45:35: My partner Chigaku was a lot better at that than I am, but i definitely enjoy spending time in the garden.

00:45:41: and yeah like we mentioned modern build with very nice traditional interior...I love those indoor patio gazebos that are open ...with the tree in the middle kind of opened so something like this.. So

00:45:59: you really do appreciate sort of Japanese and Western style.

00:46:05: Yeah, the fusion style is my thing here.

00:46:09: Well thank you so much for your time today.

00:46:11: I really appreciate it.

00:46:13: I hope that i'll be able to attend the summit next year.

00:46:17: My pleasure man great speaking to.

00:46:19: So there you have it.

00:46:20: nice interview I thought on a wide range of topics.

00:46:22: i hope It brought as much value to elia, is it did too?

00:46:25: You let me know your thoughts and if There are any other topics that you'd like Me to cover in future episodes or conversations with Other people Let us now.

00:46:32: we aim to please Now.

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00:47:38: And that's it from us for this episode, folks.

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